Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
Hello BP....I'm looking to purchase property in Newark, NJ...I'm from NYC so for me, this is right next door. Can anyone let me know what neighborhoods to stay away from? Thanks.
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
9y
Ugh. More blind leading the blind on Newark again.
At least @Account Closed and I can agree on one thing, he's one of the few that recommends investing there. Highly disagree that when it comes to buy and holds it's great. If you have experience in Newark it will help, but anyone coming and investing there as their first time I don't believe it's a good option. You need to be weathered a bit before venturing into this space.
I've asked an attorney to confirm that rent control in Newark controls all rentals, including 2 family and single family homes. Waiting a response.
Brooklyn, NY · Member since 2016 · 115 posts · 40 votes
9y
I'm in the same bucket. I'm from Brooklyn looking into breaking into investment in NJ. I'm currently looking at a property in Newark as well. But to be honest it makes me nervous. I'm ideally looking for an owner occupant property to start with as I'm looking to move. Then I can leverage that property for my next investment. But I work in downtown Manhattan so it all has to make sense.
I'm new to this and plan on using the 203k loan to get me started. But its hard to recognize a good deal. The taxes in NJ throw your numbers way off and sometimes the possible rent in the area doesn't really cover the mortgage.
Am I being realistic? What are good areas with decent price points for me to look into? Any advice would be greatly appreciated.
I'm looking to make some allies here so all advice is welcome.
I'm in the same bucket. I'm from Brooklyn looking into breaking into investment in NJ. I'm currently looking at a property in Newark as well. But to be honest it makes me nervous. I'm ideally looking for an owner occupant property to start with as I'm looking to move. Then I can leverage that property for my next investment. But I work in downtown Manhattan so it all has to make sense.
I'm new to this and plan on using the 203k loan to get me started. But its hard to recognize a good deal. The taxes in NJ throw your numbers way off and sometimes the possible rent in the area doesn't really cover the mortgage.
Am I being realistic? What are good areas with decent price points for me to look into? Any advice would be greatly appreciated.
I'm looking to make some allies here so all advice is welcome.
I'm in the same bucket. I'm from Brooklyn looking into breaking into investment in NJ. I'm currently looking at a property in Newark as well. But to be honest it makes me nervous. I'm ideally looking for an owner occupant property to start with as I'm looking to move. Then I can leverage that property for my next investment. But I work in downtown Manhattan so it all has to make sense.
I'm new to this and plan on using the 203k loan to get me started. But its hard to recognize a good deal. The taxes in NJ throw your numbers way off and sometimes the possible rent in the area doesn't really cover the mortgage.
Am I being realistic? What are good areas with decent price points for me to look into? Any advice would be greatly appreciated.
I'm looking to make some allies here so all advice is welcome.
Real Estate Agent · Brooklyn, NY · Member since 2016 · 13 posts · 5 votes
9y
I am also interested in looking at property in Newark. I am not very familiar with the different areas which makes me a bit nervous as well. I was initially looking for a multi family unit that I could flip or would provide passive income. The few homes I found, though low priced ($50 to $60,000 range) were in such poor conditions they were total gut jobs or tear downs and were not in very good areas/neighborhoods severely limiting flipping as an option. I believe I could rent at a price to generate positive cash flow, but I worry about being able to find good, reliable and stable tenants. I still thing there are opportunities in Newark the key is finding them and as William P said even if you look in what is considered a better area such as North Newark, neighborhoods can change block by block. Any advice or assistance would be appreciated.
Someone suggested Elizabeth, NJ as an option any thoughts.
New Jersey, NJ · Member since 2015 · 327 posts · 137 votes
9y
Walmsley Gedeon Scott Pyrcz Newark has potentials, I'm one of the few investors that's see great things in Newark.
Yes most properties are gut down jobs and in unpredictable areas were finding a good tenants can be a risky and the rent control can turn off some. But looking at the positive, rent control doesn't apply to all properties, your in the business of making money so let's say you buy property A for $50k multi, renovate it for another $50k, have it section 8 (3 bedroom they pay $1597) and then enjoy the cash flow. NJ tax is high but Newark is not on the high end if you compare to Paterson city, Elizabeth city or the more Rich cities.
Investor · Linden, NJ · Member since 2016 · 190 posts · 116 votes
9y
"have it section 8 (3 bedroom they pay $1597)" - $1597 if you provide all the utilities.. If you are providing only cold water, section 8 will approve closer to $1350.. still pretty good for $100K investment on a multi.
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
9y
Ugh. More blind leading the blind on Newark again.
At least @Account Closed and I can agree on one thing, he's one of the few that recommends investing there. Highly disagree that when it comes to buy and holds it's great. If you have experience in Newark it will help, but anyone coming and investing there as their first time I don't believe it's a good option. You need to be weathered a bit before venturing into this space.
I've asked an attorney to confirm that rent control in Newark controls all rentals, including 2 family and single family homes. Waiting a response.
Real Estate Agent · Rockland County NY & Northern NJ · Member since 2016 · 83 posts · 45 votes
9y
I'm always curious as to why NYC investors always look to Newark or NJ in general. I live in Rockland County and yes, taxes are ridiculous, but I would prefer to look for good tenants and a lower vacancy. Have you looked into Orange County or northern Rockland? Taxes aren't too crazy if you know where to look.
Investor · Linden, NJ · Member since 2016 · 190 posts · 116 votes
9y
@Allyssa Compton a few reasons. even though the taxes are high in NJ, the houses are cheaper. Regarding Newark, it is the biggest city in NJ. It has a port, airport, good mass transportation, arenas, low taxes and close to NYC.. the thing is, everyone is waiting for the city to turn around as a whole like Brooklyn and Harlem did.. the old mayor Cory Booker brought in a lot of outside interest and high profile names. Some people tell me that it is changing but i haven't seen much change since i started investing there unless you are talking downtown.
Brooklyn, NY · Member since 2016 · 115 posts · 40 votes
9y
Is there any other areas that's good to invest in besides Newark? Is it possible to get good cash flow elsewhere? It seems really hard d to find good deals in NJ.
New Jersey, NJ · Member since 2015 · 327 posts · 137 votes
9y
Allyssa Compton simple answer, us small/middle investors NYC can't compete here anymore. I remember a month ago I went to a Queens city auction and properties there were being bought for 900k and up. There were not meant to be flips or buy and hold, they were for developing. Other times investors try to get properties for buy and holds but the numbers make no sense because homes here are 250k and up and that's the ones that need total rehab. it would take us 20 plus years to get our investment back. NYC is only good for flips but you need high capital and lots of patience with inspection. I remember I flip this one property that had an old electrical meter that needed to be upgrade for today's electrical output, it took the electrical company Coned 8 months to complete the work. Flips here could go wrong with one mistake, my holding cost was killing me that I had to sell the property "for sale by owner" by paying an agent $99 to have a posted on the MLS just to save on the commission. Let's not forget there's 9 million people living here and about more investors and rookie investors saturating the market here making it hard to find a good deal. For my rental property in queens I receive 5 "we buy house for cash" in the mail a month so just imaging how much is that a year.
The reason us New Yorker see Newark as great because it's cheap. We figure if the investment in Newark doesn't turn out as plan, will sell and move on. In NYC we are use to being stress on properties being held up or going bad worth 400-500k and up so a property in Newark purchase for 50k is no stress and being a contractor, those homes just need some TLC.
Contractor · Milltown, NJ · Member since 2016 · 297 posts · 213 votes
9y
William P. I hold a NJ state electric license. It's valid for the whole state. NJ is not like NY where your license is only valid for specific counties. The GC/HIC license in NJ requires insurance and paperwork, no pre-requisites like the electric or plumbing. Once you acquire proof of insurance and fill out the application, you are looking at around a 6-week to two month turnaround time with the Division of Consumer Affairs.