All Forum Posts by: Jordan Gregg

Hi @Jenntyng Chern.  We had some turnover during the summer and lost a month of rent for several units.  We *knock on wood* haven't had any missed rent due to non-paying tenants.  We were able to fill the apartments, but had to come down $100/month on one of them.  Our apartments are a bit funky layout-wise which doesn't help to fill them quickly when they turn.

In general if you have a functional apartment in Bloomfield with parking, you should have no problem renting it.  Rents are lower the further south of Watsessing Ave you go, and higher further north.  We're still actively looking in Bloomfield but deals have been tight.  Hope this helps!

@Josh Stack This thread is an incredible resource. Thank you!

@Tonye Jack We used LoanDepot. My Dad was in lending for a while and knew someone who specialized in 203k. I'm happy to refer you if like, please message me if so. If you can find a local/regional lender who will do 203k at a competitive rate, I would go that route. Smaller banks may have more flexibility for other products should you need them down the road. For ex: When I applied for PPP (for a non-REI business), we talked to several smaller banks who were only lending to borrowers who already had loans with them. Building a relationship with a smaller bank can definitely have its benefits.

The rates are a bit higher for 203k but the ability to do a 100k renovation for 3500 down and 4-5% interest incl PMI made it very worth it for us.

@Tonye Jack We found one on MLS and the other on Redfin (I assume it was on MLS as well). We went above ask on both of them. The 2nd one was listed on a Friday afternoon, I viewed it 30 minutes after I got the Redfin notification and put in an offer immediately. It was off the market on Monday. This was 2-3 years ago and agree with @Matthew McCormick that competition has only increased.  

Acting fast gives you the best chance but there will definitely be discouraging moments as properties in Bloomfield where the numbers are remotely attractive are getting a lot of attention.  I called an agent about a 4fam listed a few months ago and he said he'd received 50 calls about the property in 4 days.  My best advice would be to act quickly and be consistent.  The 2nd property owner accepted our offer quickly due to personal circumstances on their end.  Had they waited I assume they would have had higher/better offers.  You never know when timing will work out in your favor, but it's not "luck" if you work your system consistently and it eventually pays off :)

Hello all.. sorry I've been a bit inactive lately. It's great there are so many investors seeing potential in Bloomfield!

@Cindy Truong Below are some of our numbers.  Keep in mind... we did 203k financing on both of these which played a major part in deciding how much renovations to take on.  With 3.5% down and 4% interest on renovation costs, it made sense to do substantially larger renovations than we would have had we come 100% out of pocket.  

Disclaimer... my non-renovated rent estimates are guesses as of 1 year ago and might not reflect the reality of the market today as I've been a bit disconnected recently.

For the property on Willow St (near Watsessing School) we are getting 1650 for the 2/1 and 1950 for the 3/1.  Neither of them are very large but both are nicely renovated.  They also include 2 tandem parking spots (1 covered).  If we didn't renovate I'd expect to be closer to 1600 and 1850.  We converted the 3rd unit (small 2/1 apartment we were living in) to an airbnb and have been doing very well there (gross has been roughly 2200/month whereas it would likely rent for 1600 on a year lease).  There are some extra costs in there for added mgmt, cleaning, supplies, utilities but it's still outperforming year lease numbers.

Our other property on Jersey St has very funky layouts... there are 4x3/2s.  They are renting at 2150-2200.  Not renovating wasn't an option.. it was falling apart :)  It's difficult to say what they'd rent for with the updated layout but not updated finishes.. I would guess closer to 2050.  We also converted one of those apts to an airbnb recently and are booked through October at roughly 3800/month.  We are very happy so far with how airbnbs have been working the area.  That said... I personally don't underwrite using airbnb numbers and make sure cash flow looks good on year leases just in case airbnb no longer becomes viable down the road.

@Jon Goehring As mentioned above, we did extensive renovations to take advantage of the 203k financing.  I agree with @Vaughn Smith that there is an appetite for renovated properties in Bloomfield and that it will bring added cashflow.  The one lesson we learned is that updates can't fix a broken floor plan.  Our units aren't what you would picture if you were starting from scratch.  This has made filling them a bit more difficult and even though our updates are higher end, we can't ask top of the market rents.

@Matthew McCormick Those numbers are great!  How large are the units?  100% agree that if/when Dodd becomes more attractive to foot traffic, it will be a big win for the surrounding area.  

Hi @Jeremy Corporan.  Welcome to BP!  We've learned a ton over the past 3 years since this thread first started.. and more every day.   We have two properties now in Bloomfield, one near Watsessing and the other near the high school.  Both are cash flowing positively.  By no means are we seasoned investors but feel free to message me and I'd be happy to share more about my experience.

Thanks @Scott Starrett! Will do

Any luck @Scott Starrett?  I'm starting the search for a property manager in Bloomfield.

@Matthew Palumbo I agree and think there's a lot of potential although it may take some time.  With the relatively recent addition of the Grove at 192 and Parkway Lofts... there should hopefully be an increase in demand for walkable areas near the train.  Personal opinion.. a couple restaurants/bars, a general convenience store, and a CVS/Rite-Aid would make a huge difference to foot traffic and a neighborhood feel.  There is Bachman's market (convenience store) at Dodd/Prospect in East Orange, but it feels completely different on that block.  There are plenty of grocery options in the area and a lot of people have cars.. so probably not needed.

@Tenzing Jangtey Sorry, I missed this.  Congrats on your purchase as well!  I have been very happy with my contractors.  PM me for details.

@Matthew Palumbo We just rented a 3/1 and a 2/1 on Willow St.  We showed the apartments probably 40 times over a couple weeks.  It was good mix of potential renters.  Young professionals - some groups of friends, some young families - not all of them commute to NYC.  Families with older/grown kids.  A few students at Montclair State.  To give you an idea... we ended up renting the 2/1 to two 20-something friends, one works in Elizabeth and the other goes to grad school in the city.  The 3/1 we rented to a late 50s couple with an elderly parent and their college-aged son who is home on breaks.  One works for MTA, other is a teacher in Union county.  We live in the building as well.. I work in IT from home mostly and my fiance is a nurse in Newark.

Regarding shopping.. you're right Dodd st doesn't really have anything to offer.  There is a small cafe that opened recently called Iron Horse on Watesessing.  Nothing fancy, but coffee and solid breakfast sandwiches.  I think people in this area who do commute take advantage of the easy train access and affordability compared to other areas with a stronger commercial presence like downtown Bloomfield and up through Montclair.