Lakewood, NJ · Member since 2013 · 3 posts · 0 votes
Hello Everyone my name is Chaim Kay and I very excited to be joining this site.
I browsed for a while and finally decided to introduce myself.
Currently I am looking at Irvington NJ area since the prices look very attractive for a first time investor. I see a lot of one and two family houses on the market that are priced under $100K. Checked some data and it seems that some of them were bought in 2005 -2006 at about the triple current price.Tax values and zillow estimates are way above asking prices. Hence the question, were they overpriced at the time? Are they hard/impossible to rent so the current owners are trying to cash them out at such loss? Has the area deteriorated tremendously? I really appreciate any input.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
12y
Welcome Chaim - Be careful with Irvington. It's a nice town with very high taxes and some real sketchy areas you'll probably want to stay away from unless you're buying dirt cheap (and some might say that you can never buy cheap enough in Irvington - I don't hold that opinion, btw).
The taxes are sky high and the cost of doing business here (i.e. $600 for a CO for a 3 unit residential property) aint cheap. As a result, depending on WHERE in Irvington you buy, the resale values aren't very high.
Geographically, like many areas in NJ, the best neighborhoods border the best towns. And the worse neighborhoods border.....you know the rest). Having said that, you'll find lower prices and higher crime on the East side (often referred to as the 'South side' ) of Irvington which borders Newark. While the more desirable 'Upper Irvington' section borders Union and Maplewood. There's also a decent section that borders Hillside.
To answer your question about the properties that were purchased in 2005-2006. Many of these properties going to foreclosure today or listed as short sales were purchased between 2004-2007. The market was overpriced during the tail end of that period (right before the bubble), musical chairs were played by buyers who didn't know any better, and many folks got left out when the music stopped. These properties would have already been taken by the banks by now if it wasn't for the 'robo-signing fiasco' which effectively restarted many of these foreclosures.
So there you have it on 'Ghosttown' (nickname for Irvington by some of the young locals). There's money to be made there but you have to be very careful what and where you buy.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
12y
Welcome Chaim - Be careful with Irvington. It's a nice town with very high taxes and some real sketchy areas you'll probably want to stay away from unless you're buying dirt cheap (and some might say that you can never buy cheap enough in Irvington - I don't hold that opinion, btw).
The taxes are sky high and the cost of doing business here (i.e. $600 for a CO for a 3 unit residential property) aint cheap. As a result, depending on WHERE in Irvington you buy, the resale values aren't very high.
Geographically, like many areas in NJ, the best neighborhoods border the best towns. And the worse neighborhoods border.....you know the rest). Having said that, you'll find lower prices and higher crime on the East side (often referred to as the 'South side' ) of Irvington which borders Newark. While the more desirable 'Upper Irvington' section borders Union and Maplewood. There's also a decent section that borders Hillside.
To answer your question about the properties that were purchased in 2005-2006. Many of these properties going to foreclosure today or listed as short sales were purchased between 2004-2007. The market was overpriced during the tail end of that period (right before the bubble), musical chairs were played by buyers who didn't know any better, and many folks got left out when the music stopped. These properties would have already been taken by the banks by now if it wasn't for the 'robo-signing fiasco' which effectively restarted many of these foreclosures.
So there you have it on 'Ghosttown' (nickname for Irvington by some of the young locals). There's money to be made there but you have to be very careful what and where you buy.
Scranton, PA · Member since 2013 · 13 posts · 3 votes
12y
Welcome Chaim. I'm new here as well from NYC. I'm exploring possible investments in NJ also. I'm glad you posted the question. That was a comprehensive answer from @Ibrahim_S. I definitely appreciate the info.
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
12y
Welcome to BP @Chaim Kay ! There's plenty of opportunity in NJ so no fear. I think @Ibrahim Hughes did an excellent job explaining Irvington albeit perhaps with a bit of sugar coating for a first time investor. I almost agree with @Chai Sag . I think if you're just starting off as a landlord you might want to try investing in Irvington after you've had some experience and are able to handle yourself like Ibrahim can. He knows the ins and outs of each neighborhood and I'm sure can execute things quickly to get them done with minimal loss. You're new and there may be additional challenges you come across in that town versus others. My thoughts on value for price would be Orange. It has two stops on the Midtown direct train line and there's some larger REI projects coming into place which is a good sign.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
12y
lol. Darren that's the first time I think anyone Has ever accused me of sugar coating. I usually get accused of being pessimistic and always painting a bleak picture. Lol. What did I sugar coat?
Lakewood, NJ · Member since 2013 · 3 posts · 0 votes
12y
Thank you Ibrahim S and Darren for the extensive information and opinions. As to Orange more feedback on that would be appreciated. Have great weekend everyone and thanks again
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
12y
@Ibrahim Hughes I'm glad that I could provide you a good chuckle this morning! I think calling it a nice town was sugar coating it a bit when it ranks in the bottom 10% of schools systems according to NJ Monthly and Moody's rates their bonds as junk. That doesn't mean you can't make money there as we both know. I just wouldn't do it personally.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
12y
lol Darren. The OP didn't come on here as a father and husband looking to put his kids in a nice School. Lol. He came on here is an investor looking to make money in the so I answered him from that perspective. Nice as in he can make some money. Not necessarily nice as in you can put your kids in their school system. But I get your point and I definitely wouldn't argue with it. But like I said (and you agree) you can make money in Irvington.
and FYI there are some nice neighborhoods, ok a couple of them, in Irvington.
House Flipper · East Stroudsburg, PA · Member since 2013 · 1k+ posts · 205 votes
12y
As you have experienced, you have received some very valuable information and direction. A suggestion, Zillow can provide you with general information regarding prices and rental figures, we feel that these are "Ball Park Guesstimates" don't take the numbers as being that accurate utilize them as a starting point and do your own due diligence.
Investor · Brooklyn, NY · Member since 2016 · 1 post · 2 votes
10y
This is a bit of a late post to this thread. I am from NY and I do invest in Irvington NJ. My advise to anyone thinking about same; visit the property of interest and drive the neighborhood. The vibes change from block to block. Yes the taxes are high and the crime could be a problem if you plan to hang out and live there. Nonetheless, if you don't live there, do the numbers you might see that they add up despite taxes and all = "+INVESTING".
The god's honest truth is everyone needs a place to live, make it such that when you come into the lives of the locals you do your best to elevate their living condition, make them aware of it and charge a fair price. In time you will find that everything else falls into place.
However, if you are out to make a quick buck without any care in the world for anyone or anything, it will not go over well. Renters are extremely good at spotting a weasel and they will in short order treat you and your property accordingly. SNAP!