I am considering buying my first residential multi family property in Montclair NJ. Any advice on investing in multi family residential properties in Montclair NJ would be greatly appreciated? Also appreciate any referrals on great brokers who have in-depth local market knowledge buying/selling residential multi family properties in Montclair NJ area.
I had an accepted offer for a 4-family property with a big parking lot, at Sherman Street in Montclair. It is considered a less nice area of town close to Pine St near Bay Street train station.
The property was cash flowing/or had the potential to cash flow really well, would venture a 9-10% cap rate. It was a nice property listed then at below $700k and I personally found it enticing to invest in an area belonging to a prestigious town such as Montclair. I pulled off my offer in the hope of finding a property closer to where I live, traveling to there was the only drawback for me.
Montclair is one of the few towns in NJ with no rent control whatsoever and the availability of low priced multifamily properties (single family nicer houses seem to control the higher price point) makes it attractive to invest there. Potential renovation and condo converting (done at the State level) could be an added benefit before reselling the building.
@Kelly Ke did you end up investing in multifamly housing in montclair? I am interested in doing the same. is it still a good market?
@Allan Wu it is near impossible to break this market right now. It would depend on your price point. In Montclair, if you can spend up to about 800k you can do well with multis, but they will be at about 0.6% at best and also be topped out in appreciation for a while. Essex County for multis is too hot now. Even off-market the deals are terrible.