I think it is related to the high property taxes, high cost of living in NJ in general, the new SALT law and creeping mortgage interest rates...those who don't buy with big profit margins built in will be challenged to make money when they exit the deal. 

Just a note to consider on this, we have several large hotels being built in the area, I'm curious to see how it all balances out.

In 2007 I bought a Duplex in a small town called Barstow, CA for $230k.

If HELOC is used just for down payment,  I will be able to make  some payment on a town home too with rental income coming in.  

I would love to find some government grants or low-cost loans because our town needs good quality rentals. 

@Jonathan Larkin we built our primary house in 1999.

I buy rehab and hold small apartments under 60 units most are under 20 right nowI build new construction homes , town homes and looking at small apartmentsI lend my own capital locally to smaller investors as I am still small time my self. 

I wish you the best of luck my friend and hope to see you around town!

He says the tenant owns several properties in town and it's likely they live elsewhere.

You do not want the cheapest tax returns in town.