Bloomfield NJ Watsessing station area investors?

Bloomfield NJ Watsessing station area investors?

Rental Property Investor · San Diego, CA · Member since 2016 · 42 posts · 22 votes

Are there any investors on BP who have property in the Watsessing Ave area of Bloomfield? I would love to connect and hear your thoughts on the area and especially market rents......

Hello BP community!  I am a new investor planning to owner occupy my first multi unit property.  I've digested a lot of knowledge and practiced running numbers over the past few months to the point where I feel well equipped (enough) to take the plunge.  One thing I'm struggling with however is my ability to really understand the local markets in some of the areas I've been targeting.

Among a couple areas, I think Watsessing Ave in Bloomfield has great transit, appropriately priced properties (cash flow opportunities), and there seems to be some serious development happening (new supermarket and luxury apts just finishing a short walk east of the Watsessing Ave station).

I've driven many of the streets and seen a few properties in the area to get a feel.  Aside from a few streets, I think it has an ok vibe to it (not North Bloomfield/Montclair, but not like rougher areas a little further south).  It's also tougher to tell in the winter months when less people are outside.  Does anyone have a good picture on the tenant class/who is renting?

I think the biggest "?" that could sink the ship is my analysis of market rents.  I do everything fairly conservatively, but a few hundred dollars off can really make or break a lot of the properties I'm seeing.  I've been looking at Trulia and Craigslist to make my determinations and understand there can be a big swing depending on the general quality of the apt.

Any insight/advice is greatly appreciated.  Thanks all!

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Glen Ridge, NJ · Member since 2016 · 69 posts · 41 votes
9y

I live only a few miles from your prospecting area.  That distance can make a huge difference.  Yes you are looking at one of the rougher areas in Bloomfield.  I know the properties you're looking at and I don't see that area turning around just yet.  There's a lot of large apartment building going on but I'm concerned that there may be too much building given the number of jobs in the area.  RE investors have a tendency to overbuild capacity during boom times and we've had a long run so far.  Bloomfield schools are not the best, though some of the elementary schools are quite nice. 

Who do you want to rent to is the question?  South of the RR Tracks and east of the Parkway are not going to get the premium prices that you're seeing along Bloomfield Ave.  The Watsessing area can get a little rough.  Last fall our girls soccer team had a game canceled because one of her friends found a dead body just off the pitch near the parkway.  I like Bloomfield.  I've just decided not to invest in that section of town.  Right now I'm doing flips because going long just doesn't make sense to me given all the craziness politically.  

Have you looked at Rentometer.com?  That will provide you the higher end rents.  The area you're looking in does not draw the same kind of rent though.  I would think in the $1100 to $1500 range.  Also have you talked to any property management companies to get their take?  That is if you're going to farm that work out.  

Good luck and let me know how it goes.  All the best.   

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  • Investor · Montclair, NJ · Member since 2016 · 1 post · 1 vote
    8y

    We recently purchased a Mixed-Use property on Dodd Street. There is reason to believe the area has potential for growth. We actually have a retail space that we plan to put up for lease across from the Watsessing Train Station. Ideal for a coffee shop or convenience store. If anyone knows of a good potential tenant please let me know! Thanks.

  • Investor · Tampa, FL · Member since 2014 · 17 posts · 6 votes
    8y

    I am looking to move to/near Bloomfield next August. I visited a friend that lives there in May and it seems like a nice area. I am currently saving and trying to study the area online to the best of my ability.  I am hoping to househack as well. This chat has been helpful. Please keep me updated on places to look and avoid.

  • Brooklyn, NY · Member since 2018 · 3 posts · 0 votes
    7y

    Hi all,

    I see this thread is quite old but I am in search of wholesalers or off market specialists who have properties in Bloomfield, NJ. Do any of you guys have a reference I can reach out too, or have any property that's being wholesaled? 

  • Member since 2019 · 2 posts · 1 vote
    7y

    Originally posted by @Chris Connolly:

    Where’s the space? I am interested in leasing it.

  • Member since 2019 · 2 posts · 1 vote
    7y

    @Chris Connolly where is the space? I’m interested!!

  • Rental Property Investor · Haledon, NJ · Member since 2019 · 26 posts · 6 votes
    7y

    @Jordan Gregg I am new to BP and have been reading your experience as a new investor in the Bloomfield area. My question is how has your experience been so far? Are you experiencing positive cash flow? I am really intrigued by this area and would love to hear from you. Thanks!

  • Rental Property Investor · San Diego, CA · Member since 2016 · 42 posts · 22 votes
    7y

    Hi @Jeremy Corporan.  Welcome to BP!  We've learned a ton over the past 3 years since this thread first started.. and more every day.   We have two properties now in Bloomfield, one near Watsessing and the other near the high school.  Both are cash flowing positively.  By no means are we seasoned investors but feel free to message me and I'd be happy to share more about my experience.

  • Rental Property Investor · New York, NY · Member since 2017 · 35 posts · 7 votes
    6y
    Hi Jordan,

    I know this is an old thread but I was wondering what the rent numbers look like in the area where you bought in Bloomfield. What kind of rent numbers would you get if you didn't rehab your property?

    Originally posted by @Jordan Gregg:

    Hi @Jeremy Corporan.  Welcome to BP!  We've learned a ton over the past 3 years since this thread first started.. and more every day.   We have two properties now in Bloomfield, one near Watsessing and the other near the high school.  Both are cash flowing positively.  By no means are we seasoned investors but feel free to message me and I'd be happy to share more about my experience.

  • Bloomfield, NJ · Member since 2020 · 3 posts · 0 votes
    6y

    @Jordan Gregg I just purchased a duplex on Florence ave in Bloomfield that I’m renovating. Did you renovate your rented apartments? How did you decide what level of renovation you would do? Will a higher end renovation payoff in that area? Thanks.

  • Property Manager · NJ · Member since 2017 · 786 posts · 396 votes
    6y

    @Jon Goehring a higher end looking renovation will work well on that side of town, but you don't want to over renovate. Take a look at renovated homes and apartments on the market in the area and see what hey have done. You'll want to give the people what they are looking for to get to the top of the rent range (upgraded kitchens and baths, grey walls, espresso wood floors or something similar) but you can do very well on that side of town. I think I know the property you purchased, but Florence is a decent street and the right renovation will bring in the cashflow.

  • Glen Ridge, NJ · Member since 2017 · 26 posts · 11 votes
    6y

    This thread is excellent! We purchased a duplex on Lawrence Street last year (almost exactly across from the Parkway Lofts). To give rough numbers, when we purchased we closed in October and wanted to get a tenant in ASAP so we listed at $1,600 for a 2 bedroom ending this August. We recently just turned it over in a few short days and now receive $1,750 for the 2 bedroom. I'm certain this apartment can climb higher in time, as it is fully renovated and a commuters area. We also have a 3 bedroom that is around $2,300 per month. 

    I would definitely recommend spending most of the money in renovations on the kitchen, bathroom, and exterior (siding, paint, landscape). 

    I think it helps having the luxury apartments nearby (and there's a new one they're building behind the train station on MacArthur). Mainly, we can always keep up with the luxury buildings by offering the same # of bedrooms as a cheaper price. I hope that a coffee shop or something similar does open on Dodd because that would be phenomenal for the market. The only thing that comes close is a dog hotel place. 

    Would love to help anyone else interested in this area! 

  • Rental Property Investor · San Diego, CA · Member since 2016 · 42 posts · 22 votes
    6y

    Hello all.. sorry I've been a bit inactive lately. It's great there are so many investors seeing potential in Bloomfield!

    @Cindy Truong Below are some of our numbers.  Keep in mind... we did 203k financing on both of these which played a major part in deciding how much renovations to take on.  With 3.5% down and 4% interest on renovation costs, it made sense to do substantially larger renovations than we would have had we come 100% out of pocket.  

    Disclaimer... my non-renovated rent estimates are guesses as of 1 year ago and might not reflect the reality of the market today as I've been a bit disconnected recently.


    For the property on Willow St (near Watsessing School) we are getting 1650 for the 2/1 and 1950 for the 3/1.  Neither of them are very large but both are nicely renovated.  They also include 2 tandem parking spots (1 covered).  If we didn't renovate I'd expect to be closer to 1600 and 1850.  We converted the 3rd unit (small 2/1 apartment we were living in) to an airbnb and have been doing very well there (gross has been roughly 2200/month whereas it would likely rent for 1600 on a year lease).  There are some extra costs in there for added mgmt, cleaning, supplies, utilities but it's still outperforming year lease numbers.

    Our other property on Jersey St has very funky layouts... there are 4x3/2s.  They are renting at 2150-2200.  Not renovating wasn't an option.. it was falling apart :)  It's difficult to say what they'd rent for with the updated layout but not updated finishes.. I would guess closer to 2050.  We also converted one of those apts to an airbnb recently and are booked through October at roughly 3800/month.  We are very happy so far with how airbnbs have been working the area.  That said... I personally don't underwrite using airbnb numbers and make sure cash flow looks good on year leases just in case airbnb no longer becomes viable down the road.

    @Jon Goehring As mentioned above, we did extensive renovations to take advantage of the 203k financing.  I agree with @Vaughn Smith that there is an appetite for renovated properties in Bloomfield and that it will bring added cashflow.  The one lesson we learned is that updates can't fix a broken floor plan.  Our units aren't what you would picture if you were starting from scratch.  This has made filling them a bit more difficult and even though our updates are higher end, we can't ask top of the market rents.

    @Matthew McCormick Those numbers are great!  How large are the units?  100% agree that if/when Dodd becomes more attractive to foot traffic, it will be a big win for the surrounding area.  

  • Rental Property Investor · West Caldwell, NJ · Member since 2014 · 66 posts · 18 votes
    6y

    @Cindy Truong

    Hey Cindy, Curious how you are managing repairs and maintenance stuff. I’m in the area and have my go to guys for different things but always looking to see how others are managing.

  • Glen Ridge, NJ · Member since 2017 · 26 posts · 11 votes
    6y

    The 2 bedroom is on the smaller side... roughly 700sf. However, it has a pretty decent size kitchen which really helps make up for the smaller "living room" area. the 2 bedrooms are decent sizes, and everything is completely updated (new floors, paint, SS Appliances, Quarts countertop, cabinets, etc). The only thing that wasn't complete but on our list eventually, is lighting fixtures. For now, it's the basic ceiling dome lights but eventually I would add some more character... not necessarily for the ROI on rental amounts, but more so because I think it will help with the style. Again, this is $1,750 this market (COVID and all).

    3 bedroom is 2 floors (one bedroom on the main level w/ kitchen and living room and 1 bath).

  • Bloomfield, NJ · Member since 2020 · 3 posts · 0 votes
    6y

    @Vaughn Smith that’s definitely reassuring to hear, especially since we are pretty much doing a gut reno and adding new appliances and finishes that will hopefully attract a higher end tenant. 
    @Jordan Gregg thanks for the reply. We are also using a 203k loan in order to do an extensive renovation. Our rental is laid out pretty nicely and we have about 1000 sqft for a 2 bedroom, the only issue is that we have a 1 car width driveway that can fit about 4 cars but I don’t know if I want to share the driveway with the tenant and deal with the hassle of constantly asking them to move the car when we want to leave. Hopefully this isn’t too much of an issue since there’s usually a decent amount of street parking.

  • Contractor · Passaic, NJ · Member since 2015 · 60 posts · 14 votes
    6y

    Interesting to see you guys talking so much about Bloomfield, I was just commenting the other day that I`ve noticed an uptick in construction and noise on SM about Bloomfield.

  • Brooklyn, NY · Member since 2018 · 67 posts · 56 votes
    6y

    @Jordan Gregg how did you find those 2 properties, where they on the MLS?

  • Glen Ridge, NJ · Member since 2017 · 26 posts · 11 votes
    6y

    @Moe Hirsch Yes, it's very relieving to see the area being so popular lately. To put things into perspective, our property on Lawrence had 5 offers all above asking when we purchased last year. We weren't anywhere near the highest, just had better terms I guess. I can't imagine what the competition is like today in light of this insane summer market. 

  • Rental Property Investor · San Diego, CA · Member since 2016 · 42 posts · 22 votes
    6y

    @Tonye Jack We found one on MLS and the other on Redfin (I assume it was on MLS as well). We went above ask on both of them. The 2nd one was listed on a Friday afternoon, I viewed it 30 minutes after I got the Redfin notification and put in an offer immediately. It was off the market on Monday. This was 2-3 years ago and agree with @Matthew McCormick that competition has only increased.  

    Acting fast gives you the best chance but there will definitely be discouraging moments as properties in Bloomfield where the numbers are remotely attractive are getting a lot of attention.  I called an agent about a 4fam listed a few months ago and he said he'd received 50 calls about the property in 4 days.  My best advice would be to act quickly and be consistent.  The 2nd property owner accepted our offer quickly due to personal circumstances on their end.  Had they waited I assume they would have had higher/better offers.  You never know when timing will work out in your favor, but it's not "luck" if you work your system consistently and it eventually pays off :)

  • Brooklyn, NY · Member since 2018 · 67 posts · 56 votes
    6y

    @Jordan Gregg that makes sense with Bloomfield. Did you use a local lender or a bigger bank for the financing and 203k loan, did you find that the interest rates where much higher going that route?

  • Rental Property Investor · San Diego, CA · Member since 2016 · 42 posts · 22 votes
    6y

    @Tonye Jack We used LoanDepot. My Dad was in lending for a while and knew someone who specialized in 203k. I'm happy to refer you if like, please message me if so. If you can find a local/regional lender who will do 203k at a competitive rate, I would go that route. Smaller banks may have more flexibility for other products should you need them down the road. For ex: When I applied for PPP (for a non-REI business), we talked to several smaller banks who were only lending to borrowers who already had loans with them. Building a relationship with a smaller bank can definitely have its benefits.


    The rates are a bit higher for 203k but the ability to do a 100k renovation for 3500 down and 4-5% interest incl PMI made it very worth it for us.

  • Brooklyn, NY · Member since 2018 · 67 posts · 56 votes
    6y

    @Jordan Gregg will send you a PM now.

  • Member since 2021 · 1 post · 0 votes
    5y

    I recently started to look into Boomfield. It seems to have a lot of potentnial. The information here is very helpful.

    Wondering what everyone's thoughts are on investing in Bloomfield now? With the pandemic, Jersey City's rental market has been hit really hard. Has the pandemic affected Bloomfield's rental market? 

  • Rental Property Investor · San Diego, CA · Member since 2016 · 42 posts · 22 votes
    5y

    Hi @Jenntyng Chern.  We had some turnover during the summer and lost a month of rent for several units.  We *knock on wood* haven't had any missed rent due to non-paying tenants.  We were able to fill the apartments, but had to come down $100/month on one of them.  Our apartments are a bit funky layout-wise which doesn't help to fill them quickly when they turn.

    In general if you have a functional apartment in Bloomfield with parking, you should have no problem renting it.  Rents are lower the further south of Watsessing Ave you go, and higher further north.  We're still actively looking in Bloomfield but deals have been tight.  Hope this helps!

  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    Bloomfield has been hot for years @Jenntyng Chern. Especially for multis, there are no deals. What you think is a deal is not a deal right now. I love Bloomfield, but it's pretty capped out for new investors now without cash or the will to bid up to win against 20 others each time on- and off-market. Even Belleville is hot fire. There aren't many multis in Essex Co that won't get multiple bids and sell over ask and if you find one, it means all of the experienced investors passed, so that should tell you all you need to know.

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