Penns Grove NJ - Target Market

21 Replies

Hello All,

I'm new to bigger pockets and very new to real estate investing! Currently I've been researching different markets and stumbled upon Penns Grove NJ; so far I've come across quite a few interesting things. 

I currently reside in Delaware just across the Delaware Memorial bridge from Penns Grove New Jersey. There seems to be an abundance of renters in that area and it would seem to be a good place to own rental property. Most places that I've looked at our at listed at a discount price. As I've been writing out business plan strategies and ideas, I believe that I will be moving towards the buy and hold strategy.

My question is two-fold:

One, does anyone know of any good property managers in that southern New Jersey area? 

Two, does anyone own any property in this area [Penns Grove, Carneys Point] I would love to pick your brain.

Thanks much!

Josh

Interesting thread only because I have noticed you can get properties in Penns Grove for next to nothing.  It always comes up on my searches since I am right over the bridge in DE too.  I personally thought they were so cheap because of crime but I could be wrong.  If you find out more information please let me know too!  Thanks!

@Jeffrey Griffin Hey Jeff! Yeah there are lots of properties there for very low prices. My wife actually grew up there and she's very familiar with the area. There isnt much crime there so Im not really sure as to why the prices are so low. There are many foreclosed homes there and I'm not sure why.

Do you have investment properties in Delaware ? If so, how is the market?How is it going for you ?

-Josh

Originally posted by @Joshua White :

@Jeffrey Griffin Hey Jeff! Yeah there are lots of properties there for very low prices. My wife actually grew up there and she's very familiar with the area. There isnt much crime there so Im not really sure as to why the prices are so low. There are many foreclosed homes there and I'm not sure why.

Do you have investment properties in Delaware ? If so, how is the market?How is it going for you ?

-Josh

Hi Josh,

I own my primary residence in northern Wilmington right now and I have been actively looking to pick up my first buy and hold multi-family.  It's a mystery why the properties are so inexpensive in that area if it isn't crime.  That's nice your wife knows the area.  Has she ever talked with you about why she thinks it's so inexpensive there?  As far as the markets in Delaware I am not fully familiar with them yet.  I have been researching the areas but haven't pulled the trigger on anything just yet.  Please stay in touch and maybe in the future we can share information.  Talk to you soon!

 

Could be that the taxes are higher then Delaware which will raise you monthly payment. I've also considered NJ to expand but like you haven't pulled the trigger. When you look for a Realtor always look for one that invest as well. Also know your first investment property will be your hardest one to get.

@William Thomas I definitely agree that the taxes could drive the rent a little. However, another thing I was thinking, and let me know if I'm crazy for thinking this way, but due to the discounted price (some by as much as 50%) there could be some value in purchasing a property there simply for the equity. It could perhaps fund another deal. Thoughts?

@Jeffrey Griffin I definitely will! Wish you the best of luck man!

I mean if you can get that kind of equity that would be a big plus.  As long as all the numbers work. There is going to be a BP first meeting this Saturday if it works out its going to be in Trolley square somewhere not sure where yet.

William Thomas wow! I suppose there aren't many details about the meet as of yet. Please please keep me posted! Thanks for the heads up!

@Joshua White

Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members. This is one of my favorite features of Bigger Pockets especially for asking specific questions.

@Mark Nolan

Youre absolutely right Mark! I have learned so much from Bigger Pockets. I follow both the Bigger Pockets and the AskBP podcasts. So much information!!!

Welcome to bigger pockets-

I was also looking to southern NJ - particularly Penn's Landing, the prices seemed right, I got in touched with the zoning and building departments - code official made me aware that the property was in a flood zone, this is important, after Sandy, all low laying properties are subject to a new FEMA flood designation, most times this requires raising the floor level, as in my case (I can't remember to what height). This property had three building on the site, each requiring major renovations, but not raising the floor elevation would result in additional flood insurance. I only wanted to enlarge and renovate- but after talking to the building department, and analyzing added cost to comply with the additional property restrictions, flood insurance and engineering cost- the ROI was not there, so I passed on the offer.

William Gentile

This post has been removed.

I'm also a newbie and I live in south jersey. The area is often referred to as cow town or the sticks in my circle of friends because they have a rodeo and its a more rural area. There are some cheap areas in south jersey. I know investors doing well in Salem. I wouldn't touch salem but they are making it work and have done so with owner financing. Be careful.
I'm also a newbie and I live in south jersey. The area is often referred to as cow town or the sticks in my circle of friends because they have a rodeo and its a more rural area. There are some cheap areas in south jersey. I know investors doing well in Salem. I wouldn't touch salem but they are making it work and have done so with owner financing. Be careful. Bill, look into foundation flood vents (smart vent) if flood insurance is an issue. Typically installing them can lower your rate quite a bit.

I own a duplex in Salem and use long and foster for maintenance.

I own 4 homes in the PennsGrove, Carneys point market. The area doesn't have much crime to speak of however it is definitely on the low income side of the fence. This is not an equity play market although it can be profitable from a cash flow perspective. Much of this area is section8 which can be great and not so great. I would also advise that to really be successful in this area one should be local. Good luck and keep looking.

@Jon Lafferty

 I hear so much about the importance of an exit strategy. If you dont mind me asking, what is your exit strategy for the 4 Penns Grove units you have ? Is an exit strategy even necessary for buy and hold properties ?

The seller I've been talking with seems open to seller financing. I was hoping to just get cash flow and experience from this property. The property is a duplex and one of the units is already occupied [tenant is on section8]. With both units rented, it cash flows really well. I'm always in the area, as I have family in this area, so I would definitely be able to keep my eyes on it at all times.  I guess my main question is, is it a good idea to buy a property specifically for cash flow, knowing there's minimal equity ?

@Joshua White having an exit strategy is always a good idea however in some markets that can prove challenging. Penns Grove may be one of those markets. Do a search for comps in the area and you will see that it isn't exactly a hot bead of activity. I would imagine that most of the home sales are offline between investors. If you'd like lets meet for a coffee and discuss the finer points of the deep southern NJ towns 

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