I am exploring the rental investment properties in the central new jersey area ( Edison / Woodbridge ). Based on the listed properties from realtor.com most of the properties have a negative cash flow. Is this common in this area or i am looking at the wrong properties.
Any inputs and directions will be of much appreciated and helpful.
Real Estate Agent · Bloomfield, NJ · Member since 2015 · 89 posts · 80 votes
10y
Most properties on realtor.com or MLS will barely break even or have negative cashflow. This is the trend in a good portion of New Jersey. You have to search hard for the good deals out here. Try searching for foreclosures, the purchase process is not bad, and most of the time these will get you a much better deal then other options. Auctions may be another option. If you have the ability to do a cash purchase on a foreclosure you may do even better at the negotiation, at least in my experience it has worked this way, however, if it's your first investment property I wouldn't venture out on cash, I would get some experience before doing so.
Moises, Thank you for your great inputs and confirming this is the trend for the realtor.com listings for most of NJ listings. What are the good sources of finding foreclosed properties? I am aware of foreclosure.com (have not used it much yet) and the bank listings.
This will be my first property and i dont have resources to do a full cash purchase. I do agree until i get some experience i wont get into full cash purchase.