What are the difference in rent rates in New Jersey vs PA

16 Replies

Hey guys,

I'm located in NJ and I'm looking into PA as an alternative to invest in due to the extreme taxes in my area, I figure it would benefit me more to invest in a not so tax dominate state. 

I am wondering what would be the average rent that can be set for a multi-family property located in PA vs NJ, I'm assuming that the closer you are to PAs major cities it would yield a better rents? 

Also, does anyone currently live in NJ and own investments in PA or other states?

I would really like to get your input on this and how it is working for you.

Thank you !

Originally posted by @Cody Jensen :

Hey guys,

I'm located in NJ and I'm looking into PA as an alternative to invest in due to the extreme taxes in my area, I figure it would benefit me more to invest in a not so tax dominate state. 

I am wondering what would be the average rent that can be set for a multi-family property located in PA vs NJ, I'm assuming that the closer you are to PAs major cities it would yield a better rents? 

Also, does anyone currently live in NJ and own investments in PA or other states?

I would really like to get your input on this and how it is working for you.

Thank you !

 Hi Cody, go to Rentometer.com and put in some addresses. Rents vary so much by state, city, neighborhood etc that you really have to look street by street to answer your question.

Cody,

 I agree with Account Closed on that, you can not compare, it can vary depending on where you live in the state. I have property in central PA, and what you can get in rent is relative to where you are, just like in NJ. Pick an area of PA that you would like to invest in and get to know the area and what you can get for rent vs. how much the property costs and what your expenses will be. keep in mind that in most of PA that taxes do not cover everything, like in NJ, and they are split up. you will have county tax, school tax, you may have one or two more to pay depending on where you are ( all paid separate) you will have to pay for garbage separate.

Patrick Liska, Contractor

@Cody Jensen Good morning, one other factor aside from taxes you should consider between NJ and PA is that NJ is an extremely tenant friendly state when compared to PA.

(732) 707-5559

Hi @Cody Jensen

Welcome to BP!

I am from Central/North Jersey like yourself and understand the debate. You are up against a few things when up in your area and in a great area to consider other markets as well. Your buy in is much higher and taxes of course are higher in comparison of the Greater Philadelphia Market or even Delaware. All the benefits to build a team in both markets offer a Landlord Association which is more direct to assist you comparing to a REIA which is real estate broadened education. Wilmington has a Landlord Association and Philadelphia has HAPCO. Where New Jersey has no concentrated Landlord Association by Area.

Let me know if you have any questions.

Regards

Joe Scorese

Hey @Cody Jensen , I'm in the same boat as you and am looking around the East Stroudsburg area.  It's close enough for me to take a drive out to and check it out.  I don't want to invest in my first property that I can't get to in less than 2 hours of driving. Gotta run the numbers and see if they make sense for you.

Take the information you see on rentometer with a grain of salt. I used it to check rental rates in a number of areas around Pittsburgh. The number on rentometer was always higher than actual numbers after doing more research.
@Cody Jensen I live in central jersey and do 95 percent of my investing in the lehigh valley in pa. I would definitely recommend it.

I agree it really does depend on where in PA. There are some areas of central/northeast PA that were former coal mining communities that are loaded with cheap houses compared to market rent. This tends to attract out of state buyers thinking it's too good to be true. I would stay away from these areas. The trouble is, most people are trying to leave these towns. The ones that stay have tons of rent options because there are so many available. Stick to medium sized communities with great demographics. Look for towns with great employers, a college and hospitals. Then scoop up 2-4 unit properties in these areas. 

I'm a Realtor/Investor in the Pocono's and Lehigh Valley.  I have a lot of investors/ buyers and renters commuting from NJ and NY because PA is so much cheaper in both rent/investing or even primary residence buying.  Depends on the area in PA but Lehigh Valley and some locations in the Pocono's are great spots to invest in.

I'm a local realtor for the Poconos as well. East Stroudsburg, PA made the list for top 20 cities nationally for ROI on rentals. This is a college town with hospitals, close to route 80 where many commuters commute to NY and NJ. we can see 3 bedroom units near the college being rented for 1.3k a month, with decent taxes. These duplexes are running between 130k-180k, which is not bad at all.

I wholesale in the Poconos and there are some great ROI rental properties in the area. As Jean stated above there is a state university and they just built a new hospital. Combine that with the indoor water parks and casino and there is some great opportunities out here

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@Cody Jensen

As our collegues are saying. It purely depends what part of pennsylvania you are looking at. Some areas see a population growth while others see a loss. I have chosen to live and invest in the Lehigh valley area. Mainly Allentown. Houses are cheaper, property taxes are cheaper and it's less tenant friendly than N.Y. or NJ. Lehigh valley has seen some growth. Both in population and job market. The downtown Allentown area is seeing new businesses transfer or set up there. There are multiple universities and colleges in lehigh valley. Depending on what kind of rentals you want to go into, either MF or SF. Either way you will get a good ROI. Lehigh valley would be good for you because its only about an 1 hour 30 minutes from you.

It also depends on where in NJ you are looking at. Where I am it’s almost impossible to find multi family. I personally believe overall PA is much better to invest in, unless you want to house hack and you live / work in Jersey.

Stephen Kunen, Attorney

@Kelley Gabany I would like to discuss East Stroudsburg with a realtor local to that area. Can you PM me so we can set up an appointment?

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