Brooklyn, NY · Member since 2014 · 11 posts · 2 votes
I have been approved for a mortgage and have been looking for duplexes in Northern Jersey. My search started off by looking in Elizabeth to Jersey City and has me looking very hard at a property in Newark. I have been searching in the sections of University
Heights and Roseville in Newark. Can someone point me in the direction of the proper analysis for a owner occupied duplex. Since this will be my first property I would like the experience of managing the property if anyone has some tips let me know thanks in advance.
Investor · Cranford, NJ · Member since 2012 · 303 posts · 153 votes
11y
Try the BP rental calculator for a start. As you learn more and have more specific needs you can modify or make your own model to work with.
Newark is a tough city, I invest in Newark and have learned alot but it is not for the faint of heart. Pretty much anything west of rt 21, and south of rt 280 is tough especially for first time landlords. I use a professional manager to help, but am still very hands on as the management portion of these properties is very active.
You want to have at 3 bedrooms in the unit you plan to rent out so you can get maximum revenue. Realistic rents for Newark are around 1100-1300 for a 3 bedroom in most parts of the city depending on condition. 2 family properties are much easier to find at a discount then 3 family, but obviously the more units the more gross income you will have to help offset the cost of your mortgage. New construction style properties are the most desirable, and will give you the least problems operationally if you can find one at a reasonable price. For rehabbed product we are seeing new construction style 2 family for about $225, older and rehabbed larger 3 family for about $300 in Newark
Software Engineer · North New Jersey · Member since 2015 · 56 posts · 25 votes
11y
If your talking about University Heights neighborhood you are going to be paying a large premium, a low cap rate fixer upper. I went to college in the area, college students are rough on properties if your looking for a college rental. On top of that you arnt going to be getting the A+ students who get grants for their housing, your getting the C- students who need a cheap place. In that area your more looking at a speculative investment to park your money for the appreciation, or your looking for a full time job managing college student rentals. Just my 2 cents, take it as you will.