Buying a triplex at retail price ???

8 Replies

I am looking to purchase a triplex have been searching for deals in the newark New Jersey area with no luck. The area is not the best but there is still so much opportunity.... any suggestions on phrchasing in Newark? And also purchasing a triplex as first investment property?!?! 

Hello Tequa,

Newark has been changing a lot in the past few months.  A lot of investors have been purchasing in Newark due to the potential of it becoming like Jersey City.  There are a lot of new projects coming up and prices have been increasing.  There are a lot of areas/properties that are near the train station / light rail station that attract commuters and can be very profitable investments.

Newark also has low property tax which does not eat up a lot of return on investment.  

I buy a lot in Newark. If you are going to pay retail make sure it’s in perfect condition and the area isn’t too bad. I see a lot of 3 families even in tough areas asking around 350k retail. That seems to be where the market is.

ok thanks for the reply. I have a few questions about the area. Do ou currently have any investment properties in Newark? Do you flip or rent ? And how are you determining the better areas ? 

I've been investing in Newark for many years. I personally dont agree with paying $350k for these houses. they may make sense now but only in great neighborhoods that have stability. drive the neighborhoods and only buy where you feel comfortable. my concern is what will happen when the rental market turns and supply catches up with demand? will rents decrease? will your neighborhood still be desirable by quality tenants? do they desire your neighborhood now?

Tequa,

I'm curious if you are looking for a triplex or multi family investment have you looked in Camden and Gloucester county? Are you open to areas closer to where you live? 

@Ibrahim Hughes . Thank you for this point. I am looking in Newark as well, actually right around 350k for a fully rehabbed 3 unit that has rent of $3900. Has the market changed To where this price is justified now? If not, what is a more reasonable price?
Originally posted by @Jason G. :
@Ibrahim Hughes. Thank you for this point. I am looking in Newark as well, actually right around 350k for a fully rehabbed 3 unit that has rent of $3900. Has the market changed To where this price is justified now? If not, what is a more reasonable price?

 Sorry. Just organizing my inbox and see that I missed this email Jason. If the answer was a no 3 mos ago, it's a yes now. lol.

JK - yes the rents are at $1300 and (slightly) up for a 3 bedroom on the numbered streets (lowest rental area in Newark).  Did you or @Tequa P. buy anything yet?

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