Real Estate Investor · Somerset, NJ · Member since 2014 · 18 posts · 1 vote
Hi guys,
Thanks a lot for sharing amazing information on this site. I couldn't have asked for a better mentor than you guys.
I have been thinking of buying my first rental property. I have been based in NJ, hence investing in NJ has been my natural preference. I have following things in my mind when analysing the property:-
Area in North Jersey. What I have concluded that areas/cities within North Jersey have natural tendency of having more rentals as they are in close proximity with NY
Three family house.
Price within 500,000. Having it within or under half million would ensure that I have a relatively better property.
Financing with 40% down, and paying off the property in 2-3 years.
Now my question is do you think North Jersey is a better investment option. I am hoping to have at least over 5K from rent.
Is there any other thing I should be thinking off? Am I being too optimistic?
"Now my question is do you think North Jersey is a better investment option. I am hoping to have at least over 5K from rent."
It might be... this question is very broad. Ill start by saying with your budget you can do a lot.
Ill tell what I tell everyone with a real general question like this. Do some research, find an area, get a realtor, tell them what you want to do, and go out and find houses - incorporate your knowledge from here / your personal education for due diligence.
The only way to figure this out is to go out and look, come back with a focused question and people will be happy to help you.
$500,000 is definitely an achievable budget. You might even be able to find a 4 family with that budget. To get $5k a month in rents, you'll probably need 2-3 bedroom apartments in each unit.
I have been looking in North NJ but so far I am having a lot of trouble justifying pricing without resorting to more risky situations (lower income areas, etc.). On a rental basis most properties I have looked at have trouble being worth it.
Steve, A lot of North Jersey areas have high taxes that might eat into your profits. Also look out for any potential tax increases as a result of local issues (e.g. a local company moving out of town, budget deficits etc.)