Quote from @Shawn Mcenteer:
Hi @Omar Ynoa I think Newark is very difficult city to invest in. Its not easy for landlords. I find a lot more opportunity in surrounding towns in Essex County. Newark can look great on paper but long term not easy, especially with the rules and regulations the city has in place to "protect" tenants.
I would like to second this opinion very strongly. Don't you even dare considering starting to invest in Newark without first spending sometime learning about programs like ERAP. Learn about things like the homeless homeowners who have tenants in their houses living for free for multiple years while the city prevents you from doing anything about it. Newark is very tenant friendly. The last thing you want is to start your investment career materializing all of your worst nightmares.
for the record I like you was very intrigued by the deals and opportunities in Newark but thanks to this community they stared me away from it and now I understand 100% why.
I ended up investing in a different community that had an excellent opportunity that was too good to pass on but unfortunately the area I invested in is similar to Newark so I'm now experiencing what people warned me about.
in short I was led to believe that typical evictions were pending on two of my tenants and it was just a matter of a couple of months before they'd be out. Owner concealed from me the fact that the tenants had not paid in over a year. My attorney didn't do his job and neither did the seller's attorney. Now I have an over $6,000 mortgage and only one tenant paying less than $2,000.
I've been struggling for well over a month to simply find an attorney who's willing to do their job and I have now settled with trying to pick a horrible attorney that's not as bad as the others because it's that bad. 30 minutes of reading has made me more knowledgeable about the government programs that are taking over people's homes then every single attorney that I've spoken to. This tells me in the last year they've pretty much all been ripping off homeowners pretending to work their eviction cases while basically sitting on their butts cashing our checks.
start your investment career in a normal market and if you find yourself good at it then and only then consider investing in these pro tenant areas. Also just because there's a high risk doesn't mean that everybody has a bad time so there will be people who tell you they're doing great in Newark or wherever. That is anecdotal. The fact of the matter is every new investor intent-friendly errors are under extreme levels of risk for multiple reasons. Whether you luck out or not is irrelevant. The risk exists for all of us and the risks are pretty severe.