New investor in NJ

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Real Estate Agent · Belleville, NJ · Member since 2015 · 408 posts · 94 votes
9y

@Nauman Shah I think of Newark as any large city. There are good parts and bad parts. As in another thread, you mostly want to look at properties in the North ward, Ironbound, and west parts of Newark. However, past those areas, you might want to look street by street and actually drive some of them and see them during the day and night to see how you feel about them. As a former Marine, I find myself to be more risk-taking when I look at areas, but I do not know your temperament. I do agree with @Account Closed that it may be more difficult to handle Newark rent control ordinance, but if you partner up with someone that has experience for the first deal or 2, I do not see you having much trouble. Also, Newark is the only city I know that has such low taxes and prices on homes so you can basically take it as a learning experience and not lose your shirt compared to many other towns in NJ. Next, I don't know many areas where you can invest approx. $120k-$150k, taxes approx. $5-6k a year and have a 3 family in which you can earn around $3000-3600 a month in rent. Of course, in those areas, you would be more inclined to work with section 8 as well. Disclaimer: I do not own a property in Newark just yet (working on that as we speak), but I do know about half a dozen investors who own in Newark and have shown me it is worth taking a look at. 

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  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    10y

    @Chris Ragazzo

    Welcome to Bigger Pockets.

  • Real Estate Agent · Belleville, NJ · Member since 2015 · 408 posts · 94 votes
    10y
    Chris Ragazzo my personal opinion is Newark. But you have a broad question. What are you looking for in buy and hold? Appreciation? Cash flow? Location? Etc
  • Staten Island, NY · Member since 2016 · 19 posts · 2 votes
    9y

    @Johnathan Boyle I have been told Newark is a good area by a friend at work who also lives in Newark. But when I look at the crime map on Trulia, it seems more on the high crime rate side which scares me because being a first time investor I dont want to get into a property in which I would have lots of complications. I was really interested in Irvington, NJ. The numbers looked great but found out that area isnt very good. So why do you think Newark is a good area for investment? I am looking to buy and hold. 

  • La Vergne, TN · Member since 2016 · 93 posts · 28 votes
    9y
    Welcome to BP
  • New Jersey, NJ · Member since 2015 · 327 posts · 137 votes
    9y
    Chris Ragazzo Elizabeth City seems to be great for a first time investor. Newark and Irvington NJ is not recommended for any rookie investors. I was motivated to get some Newark and Irvington properties but it seems my experience in the NYC market doesn't apply well in NJ. Newark rent control ordinance and Irvington CO complications can be difficult for an outside investor to adjust to.
  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    9y

    @Chris Ragazzo

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  • Real Estate Agent · Belleville, NJ · Member since 2015 · 408 posts · 94 votes
    9y

    @Nauman Shah I think of Newark as any large city. There are good parts and bad parts. As in another thread, you mostly want to look at properties in the North ward, Ironbound, and west parts of Newark. However, past those areas, you might want to look street by street and actually drive some of them and see them during the day and night to see how you feel about them. As a former Marine, I find myself to be more risk-taking when I look at areas, but I do not know your temperament. I do agree with @Account Closed that it may be more difficult to handle Newark rent control ordinance, but if you partner up with someone that has experience for the first deal or 2, I do not see you having much trouble. Also, Newark is the only city I know that has such low taxes and prices on homes so you can basically take it as a learning experience and not lose your shirt compared to many other towns in NJ. Next, I don't know many areas where you can invest approx. $120k-$150k, taxes approx. $5-6k a year and have a 3 family in which you can earn around $3000-3600 a month in rent. Of course, in those areas, you would be more inclined to work with section 8 as well. Disclaimer: I do not own a property in Newark just yet (working on that as we speak), but I do know about half a dozen investors who own in Newark and have shown me it is worth taking a look at. 

  • Investor · Plainfield, NJ · Member since 2016 · 21 posts · 4 votes
    9y

    I have three investment properties in Plainfield . 
    It's a good rental location with some nice areas on the east side near Scotch Plains.

    The west side is more run down.
    North Plainfield is next door and also reasonable and good rental location . 

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