Bergen County New Jersey housing market

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Bergen County New Jersey housing market

Samantha SantanielloPro Member
Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes

Hello BP community,

I am in the process of looking into purchasing my first investment property (SFH) and i know from listening to the podcasts and reading the forums that a good deal would be to purchase a property utilizing the 2% rule. However, in my market of Bergen County New Jersey, i cant even find a deal utilizing the 1% rule. I would really appreciate some advice from those of you that live in the new jersey area if there are areas where you can find at least a deal with the 1% rule. The pricing of houses in the Bergen county area keep rising and its so hard to get a deal these days.

Thanks so much for any insight or recommendations

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Kevin Hill
Real Estate Agent · Hackensack, NJ · Member since 2014 · 321 posts · 412 votes
8y

1% is more probable in Bergen County but that’s even hard to find. Most $300,000 single family homes aren’t going to be in good enough shape or have a good location to generate a $3000 monthly rental. 

Personally, I would wait until the market cools down and we go back into a declining market to find those good, buy & hold deals. When that would be? I’m guessing at least 1-2 years here in Bergen County. 

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  • Justin McElroy
    Rental Property Investor · West New York, NJ · Member since 2018 · 72 posts · 31 votes
    8y

    Welcome Sam!

    I live in and am starting to invest in Hudson county and see the same thing as you. 1% is a better rule to follow for a quick analysis (i.e. see how close you can get to 1%! lol). From my experience, your best bet is to really take a hard look at the numbers and analyze the cash flow and ROI. You can still find great deals that don't hit the 1% rule if you can figure out how to add value.

    Also, start going to local meet ups.  Meet wholesalers, other investors, agents, lenders, contractors, etc. and tell them what you're looking for.  These are the people that can help you find the best deals before they hit the market.

    0Reply
  • Louis Miao
    Saddle River, NJ · Member since 2018 · 3 posts · 3 votes
    8y
    Hi Samantha. There is actually a Bergen County meetup for Real Estate investors that meets twice a week at the Panera Bread on Rt17 north in Paramus. Great place to network and exchange ideas with people of all different experience levels.
    1Reply
  • Samantha SantanielloPro Member
    OP
    Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes
    8y

    Hi Louis

    Which days and what time?

    thank you

    0Reply
  • Samantha SantanielloPro Member
    OP
    Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes
    8y

    Hi Justin

    Thanks for the advice

    0Reply
  • Louis Miao
    Saddle River, NJ · Member since 2018 · 3 posts · 3 votes
    8y
    The meet ups are usually held the first and third Tuesday of the month at 7:00. The next one is July 3 but given the holiday week I don’t know how many will show up. Check out meetup.com for different groups. This particular one is the Bergen County Real Estate Group. Best of luck!
    2Reply
  • Kevin Hill
    Real Estate Agent · Hackensack, NJ · Member since 2014 · 321 posts · 412 votes
    8y

    1% is more probable in Bergen County but that’s even hard to find. Most $300,000 single family homes aren’t going to be in good enough shape or have a good location to generate a $3000 monthly rental. 

    Personally, I would wait until the market cools down and we go back into a declining market to find those good, buy & hold deals. When that would be? I’m guessing at least 1-2 years here in Bergen County. 

    3Reply
  • Keith M.
    Park Ridge, NJ · Member since 2018 · 7 posts · 2 votes
    8y

    @Samantha Santaniello I've been wondering the same thing and am I'm still hoping buy and hold is possible in BC!

    0Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    8y

    @Samantha 1% is achievable with MFR. I a currently hitting 1% and will be looking to do so again shortly. For SFR it is tough, especially with NJ taxes. I have few friends doing it in Morris County but the properties they purchase are extremely distressed. At the end of the day cashflow and 1% tends to happen more so with MFR.

    @Samantha Santanielloundefined

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  • Dan Barli
    Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    8y
    Hi Samantha Santaniello and Keith McGovern while the 1% use may be tough to get in Bergen county, as Kevin Hill said, why not look at other markets where those rules are achievable? This site of course has tons of resources to allow you to invest outside of Bergen county.
    1Reply
  • Dan Barli
    Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    8y
    Hi Louis Miao what is the name of the meetup group?
    0Reply
  • Samantha SantanielloPro Member
    OP
    Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes
    8y

    @Dan Barli i was thinking about investing out of state like in Florida because you can  achieve  1% out there for sure. However, i am new to the investing world and wanted to purchase a property that i can manage myself and kind of keep an eye on. 

    0Reply
  • Dan Barli
    Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    8y

    @Samantha Santaniello I know what you mean! You will have to decide if it's more important to keep an eye on the property or get the return you are seeking. You will have to build your team in any market you choose, who you can trust. Thankfully, it's not as challenging as you may think. Where in Florida are you thinking? 

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  • Samantha SantanielloPro Member
    OP
    Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes
    8y

    @Dan Barli  I was thinking Orlando Florida.

    0Reply
  • Dan Barli
    Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    8y

    Nice! Are you working with anyone down there? Have you looked at, or have interest, in any other markets? 

    0Reply
  • Samantha SantanielloPro Member
    OP
    Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes
    8y

    @Dan Barli I am not currently working with anyone down there yet. My plan is to see if anything comes up in my area that is worth purchasing in the next couple of months. If not, I am going to start looking for a real estate agent down there. I just get nervous because i have to really trust that agent because i am putting all my trust in them to find properties, help me find contractors to rehab and then rent them out without me being physically there. The property taxes are just so high where i live and the properties themselves are expensive which makes the 1% rule impossible.

    0Reply
  • Dan Barli
    Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    8y

    I agree completely @Samantha Santaniello. I personally invest in other markets as well, since I live in Passiac County. The taxes and price points are just outrageous here. Do you have any interest in learning about other markets besides Orlando? Let me know :) 

    0Reply
  • Samantha SantanielloPro Member
    OP
    Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes
    8y

    @Dan Barli I am actually looking into turnkey companies in the midwest

    0Reply
  • Kuau Garsson
    Rental Property Investor · Hoboken, NJ · Member since 2018 · 2 posts · 2 votes
    8y

    I live in Hoboken and agree that return in most parts of Northern NJ aren't great.  If you want 1% close to home, there is always Newark, NJ.  I've tried to reach out to realtors there but nobody seems that motivated to return phone calls.  It seems like any local Newark realtor just wants to work with people they know.  And realtors who usually work with Hoboken price points don't want to waste their time and energy on the commissions for 200k properties.

    Personally, I invest in Philly.  It's less than a 2 hour drive so I can manage myself and check in on the properties.  Lots of people on this site may say returns there aren't great, however they certainly beat Hudson/Bergen county and it's close enough to home to feel familiar.

    I see cap rates of 3% in Jersey City/Hoboken, 6-9% in Philly, and you can get around 10% in Newark. I've personally decided that 7.5-8.5% in Philly is perfect for my risk profile. A bit of leverage will get you to 10% CoC and it's an easy market to manage. Plus, I see lots of upside as Philly and Baltimore are pretty much the last cheap (for the coasts) markets from DC to Boston.

    2Reply
  • Dan Barli
    Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    8y

    @Samantha Santaniello which companies are you speaking with? Let me know which markets interest you. That's how I got started as well, with turnkey companies.

    @Kuau Garsson Hoboken is definitely out of reach to receive good returns! The trade-off is that you'd have to go to Newark, an area which some people are not very fond of. I know some people who have done very well in Newark, but it's not an area I personally choose to invest in. Have you thought of expanding into other markets to achieve a higher return? Do you like managing your own properties? 

    0Reply
  • Samantha SantanielloPro Member
    OP
    Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes
    8y

    @Dan Barli I am looking into Memphis Invest. Do you have experience with them? Which Turnkey companies do you work with?

    0Reply
  • Kulin Dakwala
    Piscataway, NJ · Member since 2017 · 82 posts · 12 votes
    8y

    I was also looking to buy and hold in jersey but couldn't find much. Finally, I ended up buying my first one in Detroit (B neighborhood) with nearly 1.4%. I worked with few turnkey providers for other markets but number didn't work so purchased one via real estate agent.

    0Reply
  • Dan Barli
    Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    8y

    @Samantha Santaniello when I started I worked with FS Houses and Decas. I've hard of Memphis Invest, but haven't worked with them personally.

    @Kulin Dakwala I know what you mean about buy and hold in NJ being difficult. How do you like the Detroit market? Did you look at any other markets in making your decision?

    0Reply
  • Kulin Dakwala
    Piscataway, NJ · Member since 2017 · 82 posts · 12 votes
    8y

    Hi Dan,

    As a beginner, I worked with couple turnkey companies at Jacksonville, FL and couple at Birmingham, AL but couldn't find good numbers. I didn't consider OH, TN and IN. Detroit is not that bad. Lots development happening there right now. I hope it will go up for few next years but we never know.

    0Reply
  • Jason Carter
    Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
    8y

    I've been investing out of state (I'm in California) for over 10 years. I have some experience with TK providers too.If you need help in other markets feel free to reach out. Always happy to help. 

    IMO the most important thing about investing out of state is making sure you have a great property manager. It takes a little work to find one, but it's definitely doable. 

    0Reply
  • Samantha SantanielloPro Member
    OP
    Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes
    8y

    @Jason Carter have you worked with roofstock?

    0Reply
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