NJ - Best Locations to Flip?

Question

I am new to RE investing and i am from NJ.

What markets in NJ do you guys think are the best markets to flip houses in?

Shannan Bowen · Answer

Hi @Craig Conte

Some good markets you can look into in South Jersey would be Haddon Heights, Haddon TWP, Audubon, Willingboro, Somerdale, Magnolia, Stratford, Bellmawr, Runnemede, Barrington, Mount Laurel, Maple Shade, Berlin, Collingswood, Gibbsboro, Laurel Springs, Merchantville, Delran, Glassboro, Deptford, Mantua, Monroe and Pitman.

All these markets tend to be in the ARV range from $150k-$200k. Days on market tend to be between a day and 30 days (as long as it's priced right). The average construction cost is between $50k-$90k.

Just let me know any more information you might need.

Odie Ayaga · Answer

Welcome @Craig Conte! @Joseph Scorese is being modest. He is part of a fantastic REIA (SJREIA) and runs a subgroup for them that you should try to attend if possible. If you can't make it contact him directly. Sorry to blow up your spot Joe!

James Masotti · Answer

@Shannan Bowen - I've not come across 150-200 ARV in Haddon Heights, Haddon Township, Audubon, Mount Laurel, Collingswood,Mantua...even Merchantville, Deptford are a stretch these days. I also tend to notice most of the flips need $50k+ in work and are not priced accordingly.

Would love to hear how you're identifying properties and how your investors are making their numbers worked because I looked at it for a full year before moving my investing to a different market where the numbers are working better.

David M. · Answer

@Craig Conte

Western Morris County (or really any of it).  Southern Sussex County...

Chris Spespy · Answer

@Shannan Bowen what do you mean by it's on their radar? If the offer wasn't accepted, isn't that the end of the road?

Steven McCutcheon · Answer

@Craig Conte

There are a few successful things you need to do or no place will make sense.

1. Make sure the property will appraise. I wouldn’t look in towns that haven’t appreciated much in the past, because the ARV might not come back as high as you think. Can it be done? Yes, but you’ll be buying 30k homes and they usually have multiple issues.

2. Look for towns with low inventory. This is crucial because if someone wants to live in that town, there will not be much to look at meaning you have more eyes on your property. Could also lead to a multiple bid situation if it’s the best one. If there is too much inventory, buyers will have much more to look at.

3. Find undervalued properties. Look in good towns, (great school system, low crime, etc.) places you would want to live. You will want to get your cash back ASAP, so this should help alleviate a home just sitting on the market.

Hope this helps, and find a market locally at first if it makes sense. You’ll know more about your own town, and why you chose to live there.

Zuzar Merchant · Answer

How is the buy n flip market in Sewell/Williamstown, NJ ? I am looking to buy a SFH ? Thank you

Joseph Scorese · Answer

Hi @Craig Conte

Welcome to BP!

Some strong suggestions when seeking opportunities in NJ

* Follow the Train Stops

* Follow the School Districts

* Follow the Tax Base in the towns

* Consider joining a reputable REIA not to be sold on things but to absorb education in the market.

* Find out what you qualify for when considering construction financing prior to going after projects you might not qualify for .

Let me know if you have any questions.

Regards,

Joe Scorese

Shannan Bowen · Answer

@James Masotti

one way that investors are hitting their numbers is that they are using sub contractors and managing the projects themselves. Also, they are using cash which helps save them on holding cost. A key way that a lot my clients are finding deals on the MLS is even when it's over priced, they are putting in their offers. Even if the offer isn't accepted the property is now on their radar, so as the price goes down they can now be the first to get their offer in when it does get to the right price. Most of the time when a property is listed at the right price it's gone right away which is why most people can't find them.

As far as the ARVs go, I found those to be the standard range for those areas. What have you found to be the range?

Shannan Bowen · Answer

@Oleg Shalumov I do not work the North Jersey Market. However, I can ask around and get some information for you.

NJ - Best Locations to Flip?

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