Commercial Condo - Ocean City NJ - Is it worth to invest

[Steve Mcdonald]

My agent told me about ocean city NJ and said I should include it in my portfolio. I am looking to purchase a commercial condo in ocean city. 

I read that it is more family oriented but Is it really better then the others beaches or is it just hyped up? For me Newport RI, Cape cod, Cape May, Wildwoods all look nice.

Had few questions.

Is it worth investing in commercial condo in ocean city nj?

If so where is the best part to purchase and rent out?

Are they easy to rent?

I understand they are seasonal businesses. Do they actually do well or do they just close and a new guy comes in every year.

Thanks for all your help. I am still learning about NJ places.

[Mike Bonadies]

@Steve Mcdonald There are a couple elements you might want to check into in greater depth

1. HOA by-laws and restrictions on tenants - Some HOAs put restrictions on renting out a condo in the building. Some restrictions are strict, mandating certain credit scores, specific types of business, etc... and some are laxed. Make sure you read them. I've gone under contract for what I thought was a good deal on a condo to realize their restrictions were crazy.

2. Seasonal Renting - Its common in the shore area to have a 10 to 14 week rental window and for leases to be either monthly or weekly. That said when that time period is over you place will either be vacant or you will have to find a winter tenant. With retail is will be very hard to find a winter tenant. Make sure you check that the $1500 a month isn't a seasonal rate versus a year round rate.

Overall Ocean City is probably the most popular of the South Jersey Beaches but that also leads to price inflation. You will certainly have demand but consider your investment over the long haul. I personally like places like Atlantic City, Wildwood, and Margate more. They aren't thriving as much as OC now but they all making the right moves to grow the city (and prices are much lower).

@Keven Vanegas is a property manager in the area and might be able to help you more with specifics.