New Investor from NJ

New Investor from NJ

Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes

Hey everyone. My name is Rafael. I live in New Jersey and am starting my investment carreer! Realistically speaking, I feel fortunate to have found this forum and look forward to learning tons along the way. I'm new to the investment world, but very motivated, humble, driven, and excited to learn. I will be posting my current status and goals soon. Starting small, but looking to collaborate as much as possible. Thanks and looking forward to learning more!

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Investor · Cranford, NJ · Member since 2012 · 303 posts · 153 votes
13y

Welcome to the forum from another NJ investor.

Taxs are city by city specific. Some areas are workable, other especially high end areas are not. I used to pay almost 30k a year on a personal residence- almost impossible to generate enough rent to cover that PITI and other expenses.

However there are other cities where you can buy a 3 or 4 family for less then 10k a year taxs. I have a 3 plex with less then 5k a year in taxs which I can deal with.

Overall NJ is not the best state for rentals because of taxes and more challenging the landlord tenant laws favoring deadbeats rather than hardworking people.

That does not mean its a bad area for buy and sell, and buy and hold in the right areas where you can get positive cash flow.

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  • Real Estate Investor · North Brunswick, NJ · Member since 2012 · 85 posts · 8 votes
    13y

    welcome... i am relatively new and still learning a lot from my investment properties... I am in central jersey so feel free to ask me any questions.

  • Investor · Paterson, NJ · Member since 2013 · 77 posts · 18 votes
    13y

    Welcome Rafael !! I'm relatively new to the forum as well, I just joined a few weeks ago. I'm from north jersey also, Paterson to be exact. Looking forward to hearing from you, maybe we can collaborate sometime soon or down the road!

  • Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
    13y

    Much appreciated Gil and Wayne for the response and hope to return the invite at some point. I will definitely reach out and feel free to contact me as well. Just bought a 2 family a year ago. Rent one unit out. I'm in the process of evaluating my equity options and will post my current status in a bit.

  • House Flipper · East Stroudsburg, PA · Member since 2013 · 1k+ posts · 205 votes
    13y

    Welcome to BP. You will find everything you want on these pages.
    I'm a real estate flipper and market my products in the North Jersey area to the NJ and NY commuter market. All types of avenues will present themselves on these pages all you have to do is becomve involved. Welcom aboard.

  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    13y

    Hey Rafael Norat welcome! Jump on in! Add a photo, start asking/answering questions, and get to know the people here. We are a great community to be a part of - and I'm looking forward to seeing you around the site!

    Be sure to get some Keyword Alerts set up!

  • Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
    13y

    Thanks everyone. Much appreciated. I know that this will be a long journey and looking forward to it.. I should have my current status and goals up soon and would love to get your feedback. I'm very driven, realistic, and patient. Much to learn here!

    Also, if any NJ members have recommedations to local investments clubs, that would be great.. Thanks.

  • Investor · Barrington, NJ · Member since 2013 · 83 posts · 9 votes
    13y

    Rafael Norat, Wayne Mack, and Gil Lieblich- I am in South Jersey, and I am new to RE too. Let's keep in touch!

  • Real Estate Investor · North Brunswick, NJ · Member since 2012 · 85 posts · 8 votes
    13y

    Since we have a few Jersey people already linked into this thread I figured i would ask you guys both newbies and experienced guys... Do you feel it's a bit more challenging in NJ because property taxes are so high? I know it has repeatedly been a major obstacle for me in the last six years my property taxes on my unit where i live has gone up 50%. originally I was able to make some cash flow on it now i live in it because it doesnt make sense to rent it for a break even.

  • Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
    13y

    Thatd be interesting to hear the differences in tax increases in other states over that same timeframe.

  • Investor · Barrington, NJ · Member since 2013 · 83 posts · 9 votes
    13y

    @gil It seems like taxes in NJ make renting nearly impossible in most townships unless it is a multi-family property.

  • Investor · Wichita Falls, TX · Member since 2010 · 3k+ posts · 603 votes
    13y

    Hey there Rafael Norat and welcome to Biggerpockets!

    I know we have a lot of people in the Jersey area you can connect with. Hope to see you more around the site!

  • Investor · Cranford, NJ · Member since 2012 · 303 posts · 153 votes
    13y

    Welcome to the forum from another NJ investor.

    Taxs are city by city specific. Some areas are workable, other especially high end areas are not. I used to pay almost 30k a year on a personal residence- almost impossible to generate enough rent to cover that PITI and other expenses.

    However there are other cities where you can buy a 3 or 4 family for less then 10k a year taxs. I have a 3 plex with less then 5k a year in taxs which I can deal with.

    Overall NJ is not the best state for rentals because of taxes and more challenging the landlord tenant laws favoring deadbeats rather than hardworking people.

    That does not mean its a bad area for buy and sell, and buy and hold in the right areas where you can get positive cash flow.

  • Union, NJ · Member since 2013 · 1 post · 0 votes
    13y

    Rafael Norat One thing NJ has no shortage of is REI clubs. Most are listed on the meetup dotcom website. I've been checking them out recently and have been to 5 different groups in the last month. I recommend you do the same. The groups I attended were all very good and each has its own vibe.

  • NJ · Member since 2013 · 21 posts · 1 vote
    13y

    @Rafael Norat
    Welcome to the board. I am looking to start my investment career as well . Please send me a connection as we can discuss ideas .

  • Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
    13y

    @ Everyone. Thanks for the support and welcome! I look foward to educating myself and giving back as well. Spent most of yesterday on the road and listened to podcasts 20 and 21, I believe. Incredible info! I'll be sure to upgrade and support things as well.

    Do anybody have any re-occuring REI groups in NJ that they would like to mention? I'm looking forward to attending and am interested in collaborating. At this point, my inputs would be as an investor, and intern of sorts. I work in a program manager role. So, I have good organizational skills. I'll post much more in an organized matter. More than willing to help where I can. And understand that most things worthwhile don't come easy!

  • Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    13y

    Hey Rafael Norat, Welcome! I'm also new member from NJ (Central). I also will be looking to attend some REI meet-ups in the near future.

  • Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
    13y

    Justin, I'll forward you a list a bp member sent me with some great info. I do plan on attending several starting next month.

  • Investor · charlotte, NC · Member since 2012 · 121 posts · 21 votes
    13y

    the taxes are a killer..i'm in ny..rockland.. here too it's the same deal.. if you lose rent a few months it can really hurt you.. and i just joined all those meetup groups as well..hope to link up with you guys

  • Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
    13y

    Maybe I'm like the frog in the boiling pot, but my attitude is "taxes are what they are". Assuming there's a level playing field and you're not rent regulated, you build it into the rent like the mortgage, water and heat. It's not like the competing rental up the street isn't paying the same taxes.

  • Real Estate Investor · Piscataway, NJ · Member since 2012 · 167 posts · 19 votes
    13y

    Welcome to BP, Rafael Norat and good luck.

  • Investor · Cranford, NJ · Member since 2012 · 303 posts · 153 votes
    13y
    Originally posted by Johann Jells:
    Maybe I'm like the frog in the boiling pot, but my attitude is "taxes are what they are". Assuming there's a level playing field and you're not rent regulated, you build it into the rent like the mortgage, water and heat. It's not like the competing rental up the street isn't paying the same taxes.

    The problem is that sometimes you can not build them into the rent if you have a mortgage based on what the going rent price is. Some people have owned rentals for years and are free and clear, some people are willing to accept low cash flows, and some markets just don't work.

    The problem with high taxs is that you will never pay them off.

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