All Forum Posts by: Ryan Goldfarb

 That does sound high, but unfortunately not far from what I've been seeing recently

We have a handful of properties in Atlantic City with a few different carriers. NREIG has issued several of our policies. The coastal location makes it a bit challenging as some carriers will not underwrite any new policies within a certain distance of the coast, so the ones that will can charge more.

We own and operate about 30 listings in Atlantic City. 

The current licensing regime is fair. There are some requirements (annual registration fee & inspection, for example), but I would prefer that to a municipality without any regulation... It helps weed out some of the bad actors and legitimizes the business. 

Here are some details on AC's program: https://www.acnj.gov/pages/short-term-rentals

 Thanks @Account Closed! I got scolded by BP for sharing the link but glad you found it insightful!

 @Account Closed - mostly answered in response to Rick but they do really well. It's definitely a lot of work -- far from a passive real estate investment -- but the returns dwarf almost anything else we've done. We're also doing major rehabs on these properties, so it helps to justify the work.

Edit: Also, worth noting, the property I mentioned above is basically the smallest STR we own in town... Many are 2-3x the size of the house generating $72k/year and do considerably better

Hey @Rick Borgo

We're actively investing in STRs in Atlantic City (with a non-STR investments as well) and are quite bullish on it.

Beyond the casinos, Stockton University's presence has been a boon to the area. Atlanticare is continuing to invest. And several new local businesses are popping up throughout the city. There's still work to be done, but things are happening!

@Joe P. - These days, at least in NJ, I haven't heard of anything not selling at auction (the auctions start at an 18% interest rate, which is unheard of in almost any asset class).

My understanding is that the city holds onto the tax lien certificate if it doesn't sell. At some point, they may foreclose and sell off the underlying real estate.

Hey @Alex Imbrogno:

We own and operate a few STRs in Atlantic City (and elsewhere in NJ), but we're particularly bullish on doing so in AC.

We are buying and renovating most of ours to be best suited for STRs. Some are single-families; others are small multifamily buildings.

One thing I would caution you about is condos/HOAs. In the city's most recent attempt to further regulate STRs, they added a requirement regarding operating STRs in HOAs. I don't recall the exact language, but my understanding is that you now need explicit permission from the HOA in order to operate an STR within the HOA. That's a tall ask in most HOAs. Even if they're permitted now, there's no guarantee they will continue to be.

Happy to answer any questions if anything specific comes to mind.

Good luck!

Hey @Ricky Ponting - things are definitely still moving when priced right. There’s quite a bit of activity given low interest rates. Seems like a bit less craziness than in the suburbs, but product with outdoor space, parking, bonus square footage is especially appealing nowadays. 
Happy to connect you with an active agent in the area if you want a more specific assessment. 

Thanks @Jonathan Greene! 

@Jose Nunez - As Jonathan alluded to, we have Airbnbs in Atlantic City, which do well through a true short-term vacation model. We also have short-term rentals in North Jersey, which have done quite well for longer stays (generally minimum 1- to 2-week stays).

I don't have any experience with STRs in South Jersey outside of Atlantic City, but I would be surprised if there's not at least a small premium to be earned if your property is well located. We host people traveling for any number of reasons: transitional housing between a rental or sale; work travel; long-term extended family visits.

Do you already own rentals in the area? It may be worth considering as an experiment with one of your units. I would strongly advise that you research any applicable laws for your relevant municipality, though, as these matters vary city-by-city (as do most things in NJ).