Hoboken, NJ · Member since 2015 · 14 posts · 1 vote
Wondering if purchasing a studio for around $200k and then renting it out in West New York would be a good idea. The goal is to purchasing something with around $200k in NJ and then renting out.
West New York seems to have several apartments in this price range. My guess would be that it would be fairly easy to rent out in this area due to proximity to NYC. Feel free to suggest other areas that might fulfill the same goal.
Hoboken would be even better but the prices there appear to be above my budget.
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
10y
@Bob Roach just because you can see NYC from West New York doesn't necessarily mean that you're going to have an easy commute. Just investigate the ways to get in and try to buy something that's under a 5 minute walk to a bus stop or other transit hub, without having to transfer to another bus or boat. Transfers are road blocks to potential residents in my opinion.
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
10y
@Bob Roach just because you can see NYC from West New York doesn't necessarily mean that you're going to have an easy commute. Just investigate the ways to get in and try to buy something that's under a 5 minute walk to a bus stop or other transit hub, without having to transfer to another bus or boat. Transfers are road blocks to potential residents in my opinion.
Hoboken, NJ · Member since 2015 · 14 posts · 1 vote
10y
Bob - thanks for your response. Any recommendations on best locations in NJ to purchase an investment property for around $200k? It should be easy to rent out.
Those areas are fairly easy to rent out however you need to be cautious of condos due to the HOA fees in my opinion. That is an expense that can go up and you can not really judge. Also a one month vacancy might wipe out any profit for the year.
Whats the end-game? Is it an appreciation play? Is it a long term buy and hold? It sounds like you want to purchase a turn key investment at market rate and hope that it would be a good investment. Is that an accurate assumption? At $200 K it doesn't seem like it would cash flow after principal, interest, taxes,insurance,maintenance, utilities, ,management and vacancy. Do you know what the market rents are for a studio in West NY, NJ? Without knowing the numbers for those expenses its hard to tell if its a good investment. Are you paying cash?
You could buy a 4-5 unit multi unit property in certian parts of NJ that would cash flow significantly better than a $200k studio IMHO.
@Darren Sager makes some points about the transportation. West NY NJ has some good entry points between NY and NJ but they are not necessarily fast. When I travel occasionally on business to the Newport station from 33rd st in Manhattan its all local stops but that's where my commute ends. That's a 40 minute ordeal from my office at 39th street. Someone who lives in West NY NJ probably has to add another 15-20 minutes to that commute. PIA if you ask me but the commuting commentary is probably best left to someone who has actually traveled the to and from commute from West NY NJ to NY.
I've seen some nice 1bd/1ba with Hudson River views on Boulevard East that are being offered in the 165K-199K range that look like they would be nice rentals. I just don't see where the value gets created in the purchase if your buying for market rate unless you are paying all cash.
Wholesaler · Bay Shore, NY · Member since 2009 · 359 posts · 199 votes
10y
@ Bob Roach
Apoplogies. I meant to say you could buy a 4-5 unit multi unit property in certain parts of NY.
Rochester NY comes to mind and they cash flow plenty. Mark Updegraff on BP can point you in the right direction for Rochester turn key properties. For instance I just saw a $64k two unit in a place called the 19th ward. $15,600 gross for the year.
Wondering if purchasing a studio for around $200k and then renting it out in West New York would be a good idea. The goal is to purchasing something with around $200k in NJ and then renting out.
West New York seems to have several apartments in this price range. My guess would be that it would be fairly easy to rent out in this area due to proximity to NYC. Feel free to suggest other areas that might fulfill the same goal.
Hoboken would be even better but the prices there appear to be above my budget.
i am currently investing in west new york. it is very convenient to NY. if on blvd east, there is a bus stop every block. there are three bus line (every 5- 10min) and a lot of private buses running all the time.
In term of investing in studios, i am not a big fan of apartments because of high cost and less control. But if you dont live close by, apartments might be relatively easy to manage yourself.
Woodside, NY · Member since 2015 · 33 posts · 9 votes
10y
West New York is a big interest to me, it's a quick trip to the city and it is a growing neighborhood. The difference is visible from a few years back, might me an interesting investment
Insurance Agent · Bayside, NY · Member since 2013 · 25 posts · 7 votes
10y
@Bob Roach@Merlina Rodas@Diana Tian The biggest hurdle to overcome in New Jersey is the HIGH property tax. On average, property tax is approximately 20 to 30% of your monthly gross income.
Investor · Union, NJ · Member since 2011 · 838 posts · 295 votes
10y
West New York is definitely growing and desirable for people employed in NYC. I work with several people here @ 40th and 6th who commute from West NY and love it. Yes a lot of buses run local from there but if you can get into the city in 30 minutes or less I think you won't have a problem renting as it seems to be a very desirable and growing area from what I can see. The numbers, now that is a whole different story. I don't know the rental market there and would have to be researched.
I generally self manage live in NJ and work full time in NYC. I need to be able to get to my properties relatively quickly. Currently I live in Somerset county and invest mostly in Union county and can get there in about 20 minutes.
Someone mentioned the property taxes in NJ and they are 100% correct. Taxes here really eat into your return so just pay attention to the numbers closely. NOT to say you can't get a good return with the high taxes as the rental market here is great and you can really get great rent in certain areas esp. as Darren mentioned being close to train or bus stop. (Hi Darren, how are you!!!)
@Bob Roach@Merlina Rodas@Diana Tian The biggest hurdle to overcome in New Jersey is the HIGH property tax. On average, property tax is approximately 20 to 30% of your monthly gross income.
that's very true. I am payment $650 on $3000 rent monthly. so doing the math is very important before buying.
Rental Property Investor · Union city, NJ · Member since 2016 · 203 posts · 43 votes
8y
all this diss about market rate and whats the goal w it is not accurate. as the market currently stands, west new york, union city is soon untouchable. last area is greenville and war zone places.
i bought a 1 bed - now 2 bed - condo for under 150k 2 yrs ago, now its well over 200k worth. just one room rents for over 1000/m in union city!! no closeby transportation.
when u can see NYC skyline in the windows, you can rent even the storage room out for ridiculous amounts.
basically, anything that you can get your hands on at this point is a good move - because soon average buyers will be priced out of here too.
Architect · Providence, RI · Member since 2018 · 137 posts · 55 votes
7y
If we want to spur development in places like this, transportation access is number one. Google offers a Transit partner service https://support.google.com/transitpartners/answer/1111481?hl=en&ref_topic=3521043. If we can get the Shortline bus (among others throughout West NY) to partner with Google it would really change things.