Good Morning Everyone, I live in Northern New Jersey and I am finally ready to take action and start acquiring Rental Property. I am going to implement the BRRRR strategy to start growing my portfolio. However, I seem to be running into some pretty high prices for Multi-Family homes. Anyone out there can find help me with a ballpark range on of pricing?
Prices I am seeing 150k and up. Is this normal for my area? Also any resources i can utilize to kind of get the average investment price for a certain area?
I would recommend getting a RE agent to run comps on multis in your area. From there you will see what market prices to expect for each type of multi which will help you know that a property you are analyzing is under market value.
@Rowen Burney Thank you very much for sharing that insight.
@Akheem Gauntlett agreed with Rowens comment above.
On another note, what is your property class criteria and what area in northern NJ are you looking in? $150k seems extremely cheap for anything C or higher and from what I have been seeing, unless you are looking in Paterson, Irvington, etc.
@Tyler Drapeau Those prices are from Irvington you are 100% correct. I am going to start looking for so in union county. Linden, Roselle, Rahway ect. What do you mean by anything C or higher?
@Akheem Gauntlett Check out the link below. I was referring to A-D scale, and that the $150k properties are probably in D neighborhoods. I started looking in Union county myself. I work in Cranford, but hardly any multi's pop up there, especially affordable ones.
$150k is high? For an MFR? That sounds like a really cheap MFR to me, and probably not in a good area.
For general househacking considerations though, check out-
@Akheem Gauntlett 150k for our area is for sure the low side. Pricing can vary significantly town to town. MFR's tend to be high in our area because of the demand to own and rent them. Where are you looking?
150k for a Multi in Union county either needs a lot of work, or has bullet holes and barred windows. Areas like Irvington and some areas of Newark look great on paper, but good luck getting your money. Roselle isn’t too bad, but the taxes are INSANE and crush most of your cash flow. Not saying there aren’t deals out there, but just be careful. It’s a tough market. Best of luck.
@Dan Crenshaw As an investor what are some of the price ranges you look at in our area?