NEW: BP Podcast 66: Flips, Apartments, & Protecting Yourself From Professional Tenants with Michael Blank

Hide this

From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1509 topics, 14385 posts — Last Post 04/18/14, 10:36AM

BiggerPockets Exclusive PRO Area

117 topics, 839 posts — Last Post 04/18/14, 05:47AM

New Member Introductions

10875 topics, 85523 posts — Last Post 04/18/14, 10:48AM

Real Estate Success Stories

394 topics, 6131 posts — Last Post 04/18/14, 10:13AM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5930 topics, 46742 posts — Last Post 04/18/14, 10:58AM

Renters

643 topics, 5820 posts — Last Post 04/18/14, 08:38AM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1609 posts — Last Post 04/17/14, 08:53AM

Do it Yourself

654 topics, 6263 posts — Last Post 04/18/14, 10:24AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3670 topics, 29428 posts — Last Post 04/18/14, 11:09AM

Real Estate Guru, Book & Course Reviews and Discussions

1132 topics, 11551 posts — Last Post 04/18/14, 10:12AM

Ask About A Real Estate Company

740 topics, 7317 posts — Last Post 04/18/14, 10:28AM

Real Estate Investing

Real Estate Strategies

Wholesaling

5594 topics, 43698 posts — Last Post 04/18/14, 10:57AM

Rehabbing and House Flipping

3329 topics, 30958 posts — Last Post 04/18/14, 11:09AM

Real Estate Development & New Home Construction

552 topics, 4679 posts — Last Post 04/17/14, 10:10PM

Innovative Strategies

703 topics, 6027 posts — Last Post 04/18/14, 08:48AM

Tax Liens, Notes, Paper, & Cash Flows Discussion

865 topics, 6668 posts — Last Post 04/18/14, 08:43AM

Rent to Own a.k.a. Lease Purchase, Lease Options

692 topics, 4872 posts — Last Post 04/18/14, 08:57AM

1031 Exchanges

143 topics, 1054 posts — Last Post 04/18/14, 08:41AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1686 topics, 11285 posts — Last Post 04/17/14, 06:41PM

HUD, VA, and Tax Sales

414 topics, 3088 posts — Last Post 04/17/14, 07:35AM

REOs

1214 topics, 10570 posts — Last Post 04/17/14, 02:28PM

Short Sales

1534 topics, 13120 posts — Last Post 04/17/14, 04:44PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7194 topics, 70675 posts — Last Post 04/18/14, 11:05AM

Mobile Homes & Mobile Home Park Investing

638 topics, 5139 posts — Last Post 04/18/14, 06:11AM

Investor Basics

Starting Out

7694 topics, 60403 posts — Last Post 04/18/14, 11:08AM

Investor Psychology

430 topics, 6098 posts — Last Post 04/18/14, 10:35AM

General Real Estate Investing

4711 topics, 37164 posts — Last Post 04/18/14, 08:52AM

Real Estate Investor Marketing

1730 topics, 14091 posts — Last Post 04/17/14, 06:21PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1409 topics, 8983 posts — Last Post 04/17/14, 06:13PM

Multi-Family and Apartment Investing

1106 topics, 9200 posts — Last Post 04/18/14, 10:48AM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

638 topics, 4884 posts — Last Post 04/17/14, 02:08PM

Business Basics

Goals, Business Plans & Entities

831 topics, 7560 posts — Last Post 04/18/14, 11:09AM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2784 topics, 19998 posts — Last Post 04/18/14, 08:30AM

Property Insurance

309 topics, 2045 posts — Last Post 04/17/14, 07:41PM

Personal Finance Discussion

328 topics, 2730 posts — Last Post 04/17/14, 04:56PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2830 topics, 19685 posts — Last Post 04/18/14, 10:40AM

Creative Real Estate Financing

1208 topics, 8764 posts — Last Post 04/18/14, 11:02AM

Crowdfunding Real Estate

35 topics, 459 posts — Last Post 04/18/14, 09:06AM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1208 topics, 7967 posts — Last Post 04/18/14, 11:04AM

Bankers, Lenders, and Mortgage Brokers

441 topics, 1922 posts — Last Post 04/18/14, 09:39AM

Contractors

267 topics, 1676 posts — Last Post 04/18/14, 07:43AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1986 topics, 11599 posts — Last Post 04/18/14, 08:46AM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 428 posts — Last Post 04/18/14, 04:22AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15007 topics, 53927 posts — Last Post 04/18/14, 11:01AM

Real Estate Events and Happenings

163 topics, 2490 posts — Last Post 04/18/14, 08:49AM

Off-Topic

Off Topic

Off-Topic

2903 topics, 32402 posts — Last Post 04/18/14, 07:21AM

Housing News & Real Estate Market

914 topics, 8351 posts — Last Post 04/17/14, 08:41AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » Commercial Real Estate Investing Forum » How do investors make money in new jersey real estate market?

How do investors make money in new jersey real estate market?

11 posts by 7 users

Signup

· Arkansas


They have so high property taxes..especially central new jersey, on average you will end up paying 4000-5000$ in property taxes every year for a property worth 250k$.How can you make positive cash flow when you have to pay such high property taxes?



Rehabber


You make your money when you buy so simply buy for less.



Real Estate Investor · Clifton , New Jersey


@Vaishal Patel Great question. So the way that I have found to make double digit returns in New Jersey market is through multifamily investments within urban markets such as Newark, Jersey City, Passaic etc. It also depends on the rate of return that you wish to make that can drive where within New Jersey you should consider investing.



Real Estate Investor · Union, New Jersey


Originally posted by :
They have so high property taxes..especially central new jersey, on average you will end up paying 4000-5000$ in property taxes every year for a property worth 250k$.How can you make positive cash flow when you have to pay such high property taxes?

I agree with Ankit - multifamily investing is key. Single family investing as rentals doesn't work too well unless you're on the high end (And can charge $3-4k in rent) or extremely low end (where you have low property taxes and section 8). Even then, this is a pro-tenant state so a single family eviction has the potential of costing an Investor BIG.



Commercial Real Estate Broker · Haverford, Pennsylvania


Many NJ cre investors make money by investing across the state line in PA, either in the Philly or Lehigh Valley markets. RE taxes in PA are considerably lower than Jersey.



· Arkansas


@Ankit Duggal -Thanks ...but what about people like me who are first time investors and its not feasible for us to invest in a multifamily property cuz of high prices...also from what i have heard newark,jersey city has very high crime rate which is why i am not looking to invest in those areas.Any tips?Appreciate it..!! :)



Real Estate Investor · Clifton , New Jersey


@Vaishal Patel What is your end goal from the investment if you dont mind me asking? If your goal is high current cash flow then you will need to consider urban markets to be able to achieve that in NJ. But if your goal is capital appreciation then you can consider better areas which will wind up costing you more in purchase price. So it is kinda a Catch 22 there.

If you want to invest into cash flow assets but cannot do it on your own then you may want to also consider investing into syndicate or Tenant in Common Investment as they would let you participate in multifamily investments without the risk of putting all your eggs into one basket (so to speak) but these investment structures have their own inherent risks so conduct your research on these investment structures.




@ankit duggal my goal in nj is to buy in lower income areas where I can achieve an optimal level of cash flow. I have been looking into Trenton and Elizabeth . Do you have any suggestions for towns or city's in nj that you believe are best ?



Real Estate Investor · Clifton , New Jersey


Gerald Gatyas it depends on what is optimal cash flow?




Originally posted by Ankit Duggal:
Gerald Gatyas it depends on what is optimal cash flow?

Optimal meaning which areas will yield the most favorable cash flow? For example , Trenton multis are going for a much lesser sales price and taxes then Elizabeth but the demand for housing in Elizabeth is much greater so this makes Elizabeth more favorable being that there is lesser chance of vacancy and the rates can be much higher . I hope I'm making sense here .



· Jersey City, New Jersey


Gerald, you've asked the same question like 5 times in as many threads. Everyone has a different idea of what's an intolerably bad hood, and what's an acceptable return. You've got to get out there, find properties in your target areas, and run the numbers. Figure out the cap rate, or even just thumbnail the P/E ratio. Divide the price by the yearly rent roll. you'll get a feel for what makes sense. Taxes make no difference if the rent is high enough, you have to look at the whole thing.

Personally, I like gentrifying areas for long term. But you won't see the cashflows that people here are seeing in the hinterlands unless you're really going to be a slumlord.





Sign up