Nutley New Jersey Multi Fams

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Nutley New Jersey Multi Fams

Anita Kollory
South Plainfield, NJ · Member since 2016 · 2 posts · 1 vote

Hello All!

I'm look to take the plunge in my first investment in a multi family in Nutley, NJ. Seems to be lot of properties for sale, but I'm not too familiar with the neighborhood and I'm a little concerned about how outdated the properties look? Any advice from fellow investors about what I should look out for? 

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Johnathan Boyle
Real Estate Agent · Belleville, NJ · Member since 2015 · 408 posts · 94 votes
9y

@Anita Kollory as far as returns, it all depends on what type of loan you'd be getting, your comfort level of buying locations, how much you're approved of, and several other factors. I recommend Belleville better than Nutley for returns in cash flow, but there's a better chance of appreciation in Nutley. Then, you need to ask, do you have children? The school system in Nutley is much better in my opinion. Finally, I honestly prefer certain parts of Newark more due to low taxes and cheaper real estate. But once again, it depends on several factors. I'd be glad to help further.

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  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 647 votes
    9y

    Hi @Anita Kollory,

    Welcome to BP!

    Nutley is a great town close to the city but still has that downtown community.

    Make sure you do a few things once you narrow your search.

    * Full Home Inspection - Whether you go FHA or Home Possible to House Hack

    * Mechanics and Roof should be solid

    * Cosmetic upgrades don't turn into full gut jobs.

    Let me know if you have any questions.

    Regards,

    Joe Scorese

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  • Johnathan Boyle
    Real Estate Agent · Belleville, NJ · Member since 2015 · 408 posts · 94 votes
    9y
    Anita Kollory congratulations on looking for a home. I know Nutley is a great town as I live in Belleville right next to it. In my opinion, it's not the best to buy for a multi family as you won't even get the 1% rule but you can probably have an appreciation play there. I suggest if you haven't already, get preapproved by a reputable lender and shop around.
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  • Anita Kollory
    OP
    South Plainfield, NJ · Member since 2016 · 2 posts · 1 vote
    9y

    Thanks for the info! @Johnathan Boyle. Would you recommend looking in Belleville? Saw a few houses there, but maybe you could point me to some areas that maybe be better than others? Would my returns be better in Belleville vs Nutley and what types of tenants would I get in Belleville?  

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  • Johnathan Boyle
    Real Estate Agent · Belleville, NJ · Member since 2015 · 408 posts · 94 votes
    9y

    @Anita Kollory as far as returns, it all depends on what type of loan you'd be getting, your comfort level of buying locations, how much you're approved of, and several other factors. I recommend Belleville better than Nutley for returns in cash flow, but there's a better chance of appreciation in Nutley. Then, you need to ask, do you have children? The school system in Nutley is much better in my opinion. Finally, I honestly prefer certain parts of Newark more due to low taxes and cheaper real estate. But once again, it depends on several factors. I'd be glad to help further.

    1Reply
  • Monica P.
    Investor · Haledon, NJ · Member since 2016 · 16 posts · 4 votes
    1y

    @Johnathan Boyle- I know this was a few years back but I’m considering buying a multi in Nutley? Is it cash flowing now? Or still so so with rents?

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y

    That advice still stands, but is much worse in all of the neighborhoods to buy a multi to rent now because rates are double what they were then. Nutley you will get great appreciation, but rental rates don't scale at the same level as value.

    I would avoid Essex because of the high taxes and really, Essex is out of most people's price ranges unless you try to sneak near the train in Orange. Morris County towns like Netcong, Rockaway, and Dover have better value to rent rates, but slower appreciation. On the higher end, Morristown is good, but high price vs. rents. I love Boonton also.

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