BiggerPockets

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?

@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.

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.

@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.