Just saw the Realty Trac November Foreclosure report. Given the job losses / casino closings in Atlantic City - Foreclosure activity jumped y/y in November. Would you invest there (given shortage of jobs?)
@Lafontant Cherilus it's a good question, I have definitely had the same thoughts myself. There aren't a great many deals in the Northeast, especially when you throw the waterfront into the mix.
This article is a great read on the general demeanor of AC: http://www.thedailybeast.com/articles/2014/12/08/i...
A big indicator to me is that Donald Trump himself has pulled his stakes out of Atlantic City. He is someone who has often sought value in places where others didn't see it. If he has no confidence, then I think it's a good indicator of what is to come.
With the lack of jobs I can't imagine AC getting any better. It's already a rough spot, so I would advise staying away. Not to mention taxes in New Jersey, which are no friend of the opportunist investor.
This is based entirely on my own qualitative analysis. Eager to hear what others have to say.
There is a lot at play here @Lafontant Cherilus but it is my local market. I bought two sfr in AC about a year ago and have some other rentals in the area. You can easily get 2% rule and over 3% but there are a lot of other things to consider.
Gaming is expanding in other areas but is a dying industry. The buses of seniors pumping their SS checks into slots is over for this town and now seems to go to wherever the closest casino is. There also looks to be issues where gaming has expanded with a bailout in Delaware and financial issues in other states (granted bankruptcy is very common even with successful companies as Caesars globally is doing right now) but the point is you need much more than just gambling.
Millennials do not like to gamble but do like to spend money eating, drinking and dancing. Non-gambling spending (food and hotel occupancy) has been on the rise. The nightclubs here are extremely successful. I see this as a positive trend for the area, we are two hours from NYC and one hour from Philadelphia. New Jersey has its share of issues but the state is packed full of people and businesses and is located in a prime area.
Overall with a new mayor and state involvement, I think things are moving in a positive direction politically. I'm not discounting the cut in jobs for the closed casinos but other casino have been adding jobs and there are more retails jobs coming in. Stockton College has just bought the old Showboat casino and casino winnings have increased for the remaining open properties.
To address some of you points @Trevor Ewen I discount anything Trump does and he has basically been out for a while (also he has no casino in Vegas, just a resort/condo/time share tower so I don't think you can write off a market because Trump isn't in it). Let's look at Carl Ichan who is running the Tropicana profitability and is doing his part to keep the Taj open. Sure that article makes it look bad and all the back and forth on closing doesn't help. Ichan seems committed to keeping it open and working out a deal.
As someone looking for good cash flow and low costs to entry the area is working but maybe I'll be broke in 5 years.
Appreciate your open mind. I also don't think Trump is the guy to aim for, just an example of malcontent with the area.
High risk brings reward, and if you're in the right place geographically, it's better prices than most of NJ.
I had a friend recently sell his vacation condo there and was happy to get what he paid for it....30 years ago!!! I do think that housing is generally cheap there. I don't understand why AC doesn't want to just put gambling behind it and just become another shore town. The R/E prices in any other town are insane.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!