Investor · NY · Member since 2020 · 7 posts · 1 vote
Hi Biggerpockets community,
I am preparing to invest in my first rental property. I live in Queens, NY. I want to choose a place closed by so I can do my own PM. NJ seems to be a good place to invest.
What
cities in NJ would you advise for affordability less than 150K and solid cash flow? What cities in NJ have potential appreciation in value?
Respectfully disagree with my friend @George W. as the C-class areas in South Jersey -- Gloucester City, Brooklawn, Westville, and Camden...all appear to have good cash flow values and reasonable purchase prices. The proximity to Philly is not something to scoff at, especially if the neighborhoods continue to rise in value. It's a long term play to have a city like Gloucester or Camden be considered what Brooklyn or Queens is to Manhattan, but every major city experiencing an influx of dollars sees their close neighborhoods also experience that influx. Boston, San Francisco, Austin, Denver, et al...
From a lifelong Centeral Jersey resident, you'll be hard pressed to find a place near queens in NJ for less than 150k in a area that isnt a D class area. Especially if you're talking multifamily.
South Jersey maybe but even still most properties arent even habitable for 150k here.
Respectfully disagree with my friend @George W. as the C-class areas in South Jersey -- Gloucester City, Brooklawn, Westville, and Camden...all appear to have good cash flow values and reasonable purchase prices. The proximity to Philly is not something to scoff at, especially if the neighborhoods continue to rise in value. It's a long term play to have a city like Gloucester or Camden be considered what Brooklyn or Queens is to Manhattan, but every major city experiencing an influx of dollars sees their close neighborhoods also experience that influx. Boston, San Francisco, Austin, Denver, et al...
I second @Joe P. ... those towns are good and there are others as well. It will be a good ride from NY to PM but I often have buyers, both investors and owner occupants that make that drive several times a week. $150k will be tough to get a multi in most towns In South Jersey, especially B or better as they approach double that price, but in C neighborhoods with good screening of tenants you will get the cash flow you want and be able to stay around $150k ... less if you find the right place to rehab. Good luck! 👍
You can also look at cities like Burlington, Collingwood, Sicklerville
Please don't miss on the high taxes. You could find a house which looks good on the price and after rehab cost but just taxes alone can kill the numbers. The refinance would also not be worth . So just be aware.
@Kunal Mishra makes a great point on the taxes...my duplex in Gloucester City is about 4400 a year, and apparently, that's on the low end. Also make sure you check FEMA flood maps which can add additional insurance requirements (if underwriting to a mortgage).
Jersey is tricky and especially that it's your first investment just do it with caution. As a fellow Queens born and raised, I would recommend considering further out of state. Your funds could go a lot further in terms of cash flow and opportunities.
I wanted to start with 150K and gradually increase as I learn from the first investment. As a New Yorker, I would invest in NY so it would be easier to manage by myself. However, NY law is not landlord-friendly. Therefore, I am looking for other states to invest in.
I wanted to start with 150K and gradually increase as I learn from the first investment. As a New Yorker, I would invest in NY so it would be easier to manage by myself. However, NY law is not landlord-friendly. Therefore, I am looking for other states to invest in.
Ozzie...newsflash...most states with the highest appreciation and influx of citizens is probably not going to be "landlord-friendly". And I anticipate more states will move towards more tenant rights as those stories will pull at the heartstrings of local and state lawmakers.
This is where ensuring your ducks are in a row are important, as is screening your tenants -- regardless of locale. Good landlords and good tenants make for the best situations, regardless of how the laws tilt.