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.
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.
Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
8y
@Samantha Santaniello No, I haven't. My understanding is they are a marketing company that markets other people's flips for a fee. Some companies do that. I'd recommend you work with someone that does the flips themselves.
Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
8y
One other thing to add is once you find a company like that, always do a search on BP for them too. See what others have to say about them. Then you can DM those people if you want more detail or have questions.
Northern NJ · Member since 2017 · 69 posts · 45 votes
8y
@Samantha Santaniello As someone who lives in northern NJ (now in Hoboken, originally from Bergen County) I couldn't find a way to get the numbers to work locally. I decided I needed to invest out of state. After going to some local meetups, I decided on Kansas City. I'm actually in KC right now meeting up with people and TK companies in town. Feel free to send me a DM for more info
Accountant · Northvale, NJ · Member since 2018 · 24 posts · 13 votes
8y
@Larry S. I am actually looking into Roofstock because I like the idea that they have all all the information available for you and you can negotiate on the price. Before I purchase anything, I need to vet the property management company of the location I choose. I’m just in the process of figuring out what location is best to start with that has job and population growth, rent value increases. What made you become interested in Kansas City?
Northern NJ · Member since 2017 · 69 posts · 45 votes
8y
@Samantha Santaniello I was doing research on, and trying to decide between different markets (Memphis, Indy and KC) when I attended a meetup and a couple said they were flying out to KC that weekend to meet people / buy a property, and another person in attendance already had 2 properties in KC. I knew that I personally could spend too much time deciding on a market, so after that meet up I focused solely on KC. Some might say it's a dumb reason, but for me, knowing someone who had property in the city was enough of a reason.
If/when you decide on a market, I highly suggest setting up key word alerts for your market of choice. I've set them up for 'Kansas City' and 'KC' and find tons of great, local info that way.
Park Ridge, NJ · Member since 2018 · 7 posts · 2 votes
8y
@Dan Barli You've invested in turnkey units? Do you think it's a good start? I've seen some affordable turnkey units outside the state and wonder if they can actually be profitable.
Cambridge, MA · Member since 2017 · 268 posts · 247 votes
8y
NJ is turning into a tax and spend state. I would say as an investor, cut and run and look to make your 2% rule in PA....
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And while Goldman alum Murphy managed to stop his fellow Democrats from raising NJ's corporate tax rate to the highest in the country, the deal includes an increase in taxes on the state's wealthiest individuals. Taxpayers who earn more than $5 million a year will see their income-tax rate climb from 8.97% to 10.75%. Meanwhile, corporations will face a surcharge of 2% over four years. The deal avoided a government shutdown that would've closed the state's parks and beaches just in time for the Independence Day holiday.
Murphy's initial budget plan would have raised the sales-tax rate to 7% from 6.625%, and the tax rate for income over $1 million to 10.75% from 8.97%. It also included levies on Uber rides, Airbnb stays and electronic cigarettes. But Democratic legislators objected to the millionaire’s tax, and instead proposed a two-year, 4% surcharge on corporate business taxes. According to Bloomberg, this would've boosted the overall tax rate for the largest corporations in the state to 13% - the highest in the country.
Real Estate Professional · Hoboken, NJ · Member since 2017 · 46 posts · 26 votes
8y
If you’re doing turnkey I’d spend a lot of time researching the company for true reviews and plan to go out there for yourself.
I’m really skeptical about them, and after seeing the poor quality of work in a lot of flips in NJ, I imagine there’s a lot of similar poor quality flips in turn keys where some buyers may not see the property in person
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
8y
@Keith M. yes that is how I started. It can be profitable, but it's not as passive or "easy" as some would think. It also depends on your goals and intentions. What are you looking for? Have you interviewed any companies?
Park Ridge, NJ · Member since 2018 · 7 posts · 2 votes
8y
Not yet, I only recently started considering them as an option. I've been following Holton Wise on Social Media which is what sparked my interest in TK.
Ramsey, NJ · Member since 2019 · 10 posts · 1 vote
7y
@Louis Miao I live in Ramsey NJ very close to Paramus and am looking to network with other real estate investors. Do you know if this club still meets? Do you have a link to sign up? I checked meetup.com but I couldn’t find anything