Camden Street Trenton NJ - War zone?

2 Replies

Looking for feedback from my Trenton investors BP'ers about Camden Street.  The house I spoke to someone about today is surrounded by boarded up houses.  It's obviously super cheap.  Has a tenant paying 800 per, month to month.  The cap rate on this is over 22%.  I'm including 10% for both cap-ex reserves and maint & repair.  Thanks for your input.

I would not invest somewhere like that.

People that live there will only be living there because they can’t live anywhere else. The returns are great because there is a catch, management is going to be tough and you’ll have more maintenance than nicer areas.

That’s just my personal opinion. I would rather get lower cash flow and a better long term return.

Originally posted by @John S Lewis :

Looking for feedback from my Trenton investors BP'ers about Camden Street.  The house I spoke to someone about today is surrounded by boarded up houses.  It's obviously super cheap.  Has a tenant paying 800 per, month to month.  The cap rate on this is over 22%.  I'm including 10% for both cap-ex reserves and maint & repair.  Thanks for your input.

No idea about this particular street or area, but I do invest in these types of places in my local area. 

People who claim you have higher repair costs obviously don't rent to these types of tenants. These types of tenants aren't going to bug you about every little problem. They aren't going to expect something to be top of the line when you do replace something. 

They just want something clean and safe.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

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.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here