Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
9y
@Yariv Morchi Jersey City is a great area to invest in, but there are some neighborhoods that are better than others, of course, and the best areas are very pricey. Is renovating a fixer-upper an option? Or you want turn-key and quick income stream? What neighborhoods have you looked in?
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
9y
@Yariv Morchi Jersey City is a great area to invest in, but there are some neighborhoods that are better than others, of course, and the best areas are very pricey. Is renovating a fixer-upper an option? Or you want turn-key and quick income stream? What neighborhoods have you looked in?
Investor · Miami FL · Member since 2016 · 11 posts · 1 vote
9y
@Jessica Zolotorofe I rather have turn-key for a quick income stream buy will consider a fixer-upper if it's a very good deal. I looked at Jersey City (excluding Greenville) Union City, North Bergen, West New York and Wheekhaken.
Developer · Jersey City, NJ · Member since 2015 · 43 posts · 48 votes
9y
@Yariv Morchi If you've been looking then you know the market has gotten too expensive. Most deals I see are 6% cap rate or less. Agents are constantly peddling me deals that they claim are 6.5% or more but it's just a numbers game with most expenses missing (i.e. vacancy, repairs, maintenance, etc.) unless you're a slumlord. The only deals where you can get over 7% cap rate are value add deals that require work. I don't like 100yr old buildings that are asking sub-6% cap rates with at market rents. Hence, I've focused on finding development deals off market where you end up with a 6.5%+ cap rate and a brand new building. I underwrite conservatively in those cases since it's the riskiest form of investment (i.e. slightly below market rent, lots of const cost contingency, etc.). Also, the larger multi-unit deals (older buildings) are all rent controlled in Hudson County...pretty much every city has rent control here with mostly CPI based rent bumps. Good luck.
Investor · Miami FL · Member since 2016 · 11 posts · 1 vote
9y
@Kevin K.
I looked at many deals and also think that the new developments are the best deals to have now in JC. Many new developments will be with tax abatement (5 years). They ar easy to maintain and usually rented with a small premium. After 5 years when the tax abatement is completed hopefully I will be able to increase the rent enough to keep a reasonable cap rate. I guess I have to compromise and lower my 7.5% cap rate to about 6.0%. Thank you very much.
Wholesaler · Jersey City, NJ · Member since 2016 · 3 posts · 0 votes
9y
I agree with Kevin K. I have been investing in JC. I have had good success but things have certainly gotten expensive. Mind you can get your cap rate if you consider Greenville but as far as I know there are not many multi-family on the market.
Although I am very curious how Kevin K finds off market deals in JC.