Should I buy Apartment Complexes in New Jersey

Question

Is New Jersey a good place to invest in Apartment Complexes 5 units and greater?

Shawn Mcenteer · Answer

Hi @Lucion Pennant one of the main reasons I focused my time and attention on small multi family properties in NJ is the fact they are much more landlord friendly.  For example a duplex property does not have to apply for state green card while properties with more than 2 units will.  Properties with 5 units or greater have much stricter laws.  If you are considering owner occupying your next investment property 4 units and under will make the process much more landlord friendly.

Kevin Manafi · Answer

@Lucion Pennant New Jersey is a great place to invest in all different types of real estate, and apartment complexes are no different! In terms of being landlord-friendly or not---it really depends on the specific city/municipality. Every state and city really differs, but speaking from personal experience, neither myself nor my clients who have invested in rental properties in Northern NJ have had any issues.

Lucion Pennant · Answer

Great insight. Thank you @Shawn Mcenteer

Bob S. · Answer

If the number make sense, but you are not ready. So flip the contract to someone doing deals, they will pay you a fee. Save, learn then go on your own,

Good Luck

Shawn Mcenteer · Answer

Long story short @Lucion Pennant when my wife I first started investing in NJ there were many saying the exact same thing that is being said about NJ in this thread.  We very seriously almost pulled the trigger with out of state investing.   Hands down one of the best investing decision we ever made was flipping all the negative ideas around NJ upside down and discovering for ourselves how to leverage the garden state to be investor friendly.   What we have achieved in equity alone, prior to COVID (much much more equity now) would have taken us dozens of properties out of state and hundreds of thousands of liquid cash.  Instead we have made every dime invested back and collecting rents on auto pilot.   Simply put whatever you tell yourself to be true will become true,  we told ourselves there is a way to make this work and believe it or not it absolutely works for us

Joseph Guzzardi Jr · Answer

@Lucion Pennant I'd recommend to go network with people who actively invest in this arena and possibly consider shadowing or working for them to see if it's actually a good fit for you. You can learn the pros/cons and see if this is a path you would want to go down in NJ. Leverage the knowledge.

Taylor L. · Answer

I would never invest there, my strategy is entirely focused on landlord friendly areas much further south. There are obviously people having success in NJ, though. From an outsider's perspective it seems that the devil is in the details in those areas. Lots of ways to run afoul of the rules & regs.

Mike D'Arrigo · Answer

@Lucion Pennant keep in mind that NJ has very high property taxes and it is not investor friendly at all. It wouldn't be on the top of my list. We've had a lot of success with small/medium apartments in the Quad Cities.

Vanessa Regalado · Answer

@Lucion Pennant New Jersey is a great State to invest depending on the property, location and financials. A lot of municipalities are tenant friendly while others have minimum restrictions. Your numbers have to make sense and ensure the financial being presented to you are accurate. There are some logistics to review as you go into larger complexes that you need to ensure you account for like for example; parking, elevator, sprinkler system, etc. Sometimes real estate agents do not account for these items when calculating the cap rate.  Good luck to you!

Lucion Pennant · Answer

@Kevin Manafi That's good to hear. Thank you!

Should I buy Apartment Complexes in New Jersey

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