Looking at Newark, New Jersey

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Looking at Newark, New Jersey

Taron Jackson
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. 

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Darren SagerPro Member
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.  

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  • Ibrahim Hughes
    Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Dominik Piechoczek:

     Avoid anything west of Mccarter Highway. That's all still very ghetto.

     Absolutely false as this ignores great neighborhoods like Downtown,  Teachers Village, University Heights, much of North Newark.  Upper Roseville, Forest Hill and Bloomfield border. And that's just the central and north wards. South and west wards offer great neighborhoods as well.

    2Reply
  • Taron Jackson
    OP
    Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
    9y

     Thanks to everyone on this post!! 

    I value everyone's opinion and/or insight. 

    Living in Brooklyn my whole life I definitely know how a town can go from what ppl called "Ghetto" to becoming one of the hottest markets on earth, so I just want to get in a market that's on the verge and I think Newark has that potential. 

    1Reply
  • Ibrahim Hughes
    Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    I encourage all Investors interested in investing in urban areas to consider directly investing in the people as well. Comfortable (i.e. renovated) housing is a given. But there are also cultural and or athletic organizations who  work with the youth. Organization who help residents achieve gaiinful employment. And still others who work with residents and the police to reduce crime. There's so much more to urban cities than what you see on TV or read in the papers. And we should all  (again those of us who are involved and or interested in investing in "the hood") should look at investing from a more holistic approach. It makes great business and ethical sense imo.

    7Reply
  • Taron Jackson
    OP
    Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
    9y

    Real talk @Ibrahim Hughes

    1Reply
  • Walmsley Gedeon
    Brooklyn, NY · Member since 2016 · 115 posts · 40 votes
    9y
    Ibrahim Hughes hey Mr. Hughes, do you have an opinion o the vailsburg section?
    0Reply
  • Taron Jackson
    OP
    Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
    9y

    Yes @Ibrahim Hughes, any areas in Newark you suggest I look into, Preferably for a 3-4 unit?

    0Reply
  • Ibrahim Hughes
    Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    I grew up in both lower and upper Vailsburg. lower Vailsburg it's still a bit rough. It depends on what your tastes are. And lower Vailsburg should be considered anything east of Stuyvesant Avenue to be exact. The best part of Upper Vailsbur is a section called Ivy Hill, that is anything west of Sanford Avenue and south of South Orange Avenue. It's the best part of the west ward imo.  The best streets in that section  are those that feed off of Mount Vernon Place (North or South) and are located west of Sanford Avenue.

    3Reply
  • Taron Jackson
    OP
    Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
    9y

    Thank you @Ibrahim Hughes

    0Reply
  • Ibrahim Hughes
    Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    Taron. other Wards offer great neighborhoods as well. But the quality of a neighborhood is subjective. Depends on what you're accustomed to and what forms the basis of your comfort level. in commercial real estate terms are you looking for in a, b, c, d or are you okay with an F neighborhood?

    0Reply
  • Taron Jackson
    OP
    Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
    9y

    Nothing lower than a "C" neighborhood 

    0Reply
  • Darren SagerPro Member
    Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    @Omar Ismael you're welcome to purchase anywhere you like.  When it comes to making things work well in Newark I think the rent control law they enacted makes things a bit for restrictive, and that's putting it mildly.  How you can say that the rent control law doesn't effect your bottom line is something I personally can't believe.  I've had to deal with it in other towns and it was far less restrictive as Newark's is currently and it effected my bottom line without a doubt.

    There are people who can be very successful with property in Newark.  I know some who have property in their family there for more than a century.  My thoughts are that if we were going skiing for the first time, I'd want to start on a green circle slope, the easiest I could find to have a good experience.  If I never had been skiing before and headed right to a double diamond, chances are I'm going to fall down quite a bit and possibly land myself in the hospital.  Doesn't mean I'm not going to make it down the hill in one way or another.  But if may make me think twice about doing it again if it was painful.

    Everyone has their preferences and what risk level they'll accept.  I think that there are many here who glamorize Newark in that respect who don't have the knowledge and long term experience there to be doing so.  This is why I believe in many cases now on BP (and not just about Newark) the blind are leading the blind.  They're riding the wave of the upmarket that's been around for the past few years and have never personally experienced a downturn.    If you're going to go into this market all I say is be ready, have "thick skin", have your systems in place or perhaps look into other towns perhaps.  Maybe one doesn't have the budget to do so and if so you have to do what you can with what you have.  

    I personally would love to see Newark become what it once was, and I think they're doing some things that may just make that happen.  I just think they put a big roadblock in place to discourage smaller investors and most are oblivious to it.  

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  • Omar Ismael
    Agent / Investor · Newark, NJ · Member since 2015 · 95 posts · 60 votes
    9y

    Thanks for the advice, but I will be staying in  Newark Nj for at lease the Next 5 years that's when I plan on Cashing out and going back home to St Lucia . 

    0Reply
  • Ray Reed
    Investor · Linden, NJ · Member since 2016 · 190 posts · 116 votes
    9y

    @Omar Ismael can i reserve a room for the jazzfest or carnival 5 years in advance?

    0Reply
  • Omar Ismael
    Agent / Investor · Newark, NJ · Member since 2015 · 95 posts · 60 votes
    9y

    I will be at these events next year

    0Reply
  • Walmsley Gedeon
    Brooklyn, NY · Member since 2016 · 115 posts · 40 votes
    9y
    Ibrahim Hughes thank you for that input. Are you suggesting that a investment in the area will be like walking a tight rope? It could go good or bad?
    0Reply
  • Ibrahim Hughes
    Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    @Walmsley Gedeon - which area are you referring to? Sorry. responded to several posts in several threads.

    0Reply
  • Walmsley Gedeon
    Brooklyn, NY · Member since 2016 · 115 posts · 40 votes
    9y
    Ibrahim Hughes hey Mr. Hughes... the Vailsburg area in Newark.. why are so many people saying that you need to know and understand the neighborhood to invest in it. What makes Newark so hard to invest in?
    0Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    9y

    I agree with @Darren Sager 100%. Newark is not the place for your first investment property. The Essex County Sheriff's Sales every week are very heavy on Newark and Irvington, but they are best flipped by experienced investors who know the processes in these towns because, as many have said, the values fluctuate on a block-by-block basis. A lot of first-time investors are looking in Bloomfield (great train access), but the taxes are high and the players in the game are vast. I like Orange and East Orange for first-time flip opportunities because you can get in at a good price, do a clean, lower cost renovation, and get out ok on the other end.

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  • Walmsley Gedeon
    Brooklyn, NY · Member since 2016 · 115 posts · 40 votes
    9y
    Jonathan Greene I appreciate your input. Thank you
    0Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    9y

    My pleasure @Walmsley Gedeon. 

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
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  • Taron Jackson
    OP
    Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
    9y

    Any insight on Plainfield NJ??? 

    Yes, no, maybe so? 

    Buy and hold strategy 

    0Reply
  • Darren SagerPro Member
    Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    @Taron Jackson you might want to consider North Plainfield right next door.  Something walking distance to the train in Plainfield, just be sure to watch out for the flood zone which is prevalent there.  Household income runs about 20% higher on average.  And rent/price ratio can be pretty good.  

    862-208-2287Podcast Guest on Show #48
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  • Taron Jackson
    OP
    Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
    9y

    North Planfield NJ, near train...got it. Thanks @Darren Sager

    1Reply
  • Keith Lemms
    Investor · Yonkers, NY · Member since 2016 · 41 posts · 7 votes
    9y

    Hello Everyone , I'm fairly to new to BP but I have read tons of post over the last half dozen months or so . I am in contract for a 3 family in New Work North Side that based on current verified income should Net cash flow about $900 per month after expenses, 7% repairs , 7% Cap EX , 10% vacancy  . I am familiar with investing in rough areas my first investment property was in the west bronx (yankee stadium) area in the mid 90s. Sold it in early 2003 and I've been on the sidelines since. I am trying to get back in the game with this property . I love to link up with other local investors as well as contractors , handy man . I am trying to get a team together and be proactive especially regarding, contractors, electrician, plumbers, because trying to race around after a problem has happened is a huge pain . Also if anyone know of any meet up anytime soon please let me know . Thanks. 

    0Reply
  • Cindy Terborg
    Maplewood, NJ · Member since 2017 · 1 post · 0 votes
    9y

    @Keith Lemms I know your post was from a while ago but I am a contractor/property manager in the area so if you are still looking to put together a team pm me.  

    0Reply
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