New York City, NY · Member since 2015 · 52 posts · 6 votes
Curious if any BP have any experience with buying rental properties in the East Orange, NJ area. I know it is far from the best neighborhood but the property is relevantly cheap, and there is a lot of opportunity to scoop up 2-4 unit multifamily homes at a cheap price.
I say cheap because I live in New York City, and nothing is cheap real estate wise, so I am exploring parts of nearby jersey for more cost efficient options. my friend just bought a property in East Orange as well (its his 4th investment property) and he says he will be buying as many multifamily homes as he can out here over the next 3-5 years.
here is what monthly expenses/income looks like monthly and annually. If you have any experience with East Orange please comment
Do you have taxes and insurance factored in there? I didn't see them broken out, but maybe they're embedded in one of the other expenses.
As for East Orange, big factor here is where within EO the property is located. There's no substitute for driving the area and learning it block by block.
Also, double check their rent control ordinance. I can't remember if it kicks in for 4-unit buildings or 5-unit buildings.
Do you have taxes and insurance factored in there? I didn't see them broken out, but maybe they're embedded in one of the other expenses.
As for East Orange, big factor here is where within EO the property is located. There's no substitute for driving the area and learning it block by block.
Also, double check their rent control ordinance. I can't remember if it kicks in for 4-unit buildings or 5-unit buildings.
Do you have taxes and insurance factored in there? I didn't see them broken out, but maybe they're embedded in one of the other expenses.
As for East Orange, big factor here is where within EO the property is located. There's no substitute for driving the area and learning it block by block.
Also, double check their rent control ordinance. I can't remember if it kicks in for 4-unit buildings or 5-unit buildings.
Hey Ryan thank you for the response. Taxes are built into the mortgage price (I used a mortgage calculator which has taxes built in) insurance was not added, so that is something that would have to be in put.
As far as rent control ordinance units up to and including 4 units are not subject to the rent control ordinances but are subject to the rent reasonable policy. On average a 2 bedroom in that area is renting for $1,325/per month whish is $500 total more a month then what I have laid out on the excel sheet.
With that Being said, this seems like a pretty good investment, it produces cash flow and has a decent margin on monthly basis.
Long Island City, NY · Member since 2017 · 11 posts · 11 votes
8y
Hi @Anthony Caleca, did you end up buying the property (or any other properties) in E Orange? Would be curious to hear what your experiences have been in terms of your property performance vs. projections as well as your experience with property management and finding tenants.
I too think that E Orange and Orange have great investment potential, given the further gentrification of Newark and the perpetual unaffordability of NYC.
4-units in particular seem great, given their relative scarcity in this market. Can't imagine having trouble renting out a 4-unit close to a train station in this job market.
Rental Property Investor · Jersey City, NJ · Member since 2017 · 104 posts · 53 votes
8y
Hi @Anthony Caleca, like @Thomas Lee I am curious as to how your investment actually panned out vs. your pro-forma numbers. I'm keenly interested in parts of EO and would be interested to know how your property is faring/if there were any surprises (good and bad) that you didn't plan on. Thanks!