New Jersey Real Estate should I move there?

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New Jersey Real Estate should I move there?

Miguel Bautista
Rental Property Investor · PA · Member since 2020 · 23 posts · 20 votes

Hi Bigger Pocket community! I am considering moving to New Jersey from Arizona, I am wondering what areas of NJ are best for small multifamily investing?  

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Kevin Hill
Real Estate Agent · Hackensack, NJ · Member since 2014 · 321 posts · 412 votes
5y

Stay in Arizona, believe me.

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  • Natalie Schanne
    Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Miguel Bautista - Why? Job opportunity? New Jersey has lots of high paying jobs. Real estate and property taxes are quite expensive. Appreciation is hit or miss in some areas due to the property taxes. (ie if you're paying 12000/year in property taxes, that's $1000/mo of home value principal you can't afford or about $230,000 at today's interest rates of 3.25% - i.e. same house with no property taxes you could pay $230,000 more for and have the same monthly payment). 

    1Reply
  • Kevin Hill
    Real Estate Agent · Hackensack, NJ · Member since 2014 · 321 posts · 412 votes
    5y

    Stay in Arizona, believe me.

    14Reply
  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    5y

    Depends what you are looking for. The further away from NYC, the better. Taxes are lower, people are nicer, life is (slightly) slower paced. 

    [email protected]732-289-3823
    3Reply
  • Judy Parker
    Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
    5y

    Don't do it. New Jersey is so expensive and getting worse. Our property taxes are the highest in the nation. We are a Tenant-Friendly blue state, with a tax-and-spend, dictatorial governor, and don't get me started on our 2nd amendment rights. Over the last 3 years I have started investing out of state. I get more value for my hard earned money outside of New Jersey.

    13Reply
  • Joe Martella
    Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
    5y

    Dirty Jersey.  Taxes usually kill most deals and they are constantly being raised.  We have cold winters.  I think you will regret it when you have to shovel where you live and then shovel your multifamily property or you can buy a snow blower that breaks after your third use or the engine gums up after a season.  Or if a pipe bursts because of the cold or if the heat goes out during the dead of winter.  I have 3 SFHs in NJ so I save my back from the shoveling but I dealt with all the other issues.  

    Writing this I realize us north eastern folks are a whole other breed and living can be tough.  

    On second thought, hey @Miguel Bautista I am moving to Arizona. Where should I go.  

    8Reply
  • Chrissy Gillo
    New to Real Estate · Union, NJ · Member since 2019 · 7 posts · 6 votes
    5y

    @Miguel Bautista I live in NJ and I highly recommend you NOT invest here. Trust me this is the worst place to live besides California. Taxes are extremely high and the properties are falling apart.

    6Reply
  • Wayne Loux
    Realtor · Warren, NJ · Member since 2018 · 39 posts · 16 votes
    5y

    Hey Miguel we have seen a great spike in prices in NJ I have been licensed for 14+ years and investing in multies in NJ for 15+ years.  Would love to discuss  your options.  Feel free to learn more about me from my episode of BP money #158.  Lets connect soon.  All the best.

    1Reply
  • Carlos Albarracin
    Real Estate Agent · Hillside, NJ · Member since 2020 · 33 posts · 12 votes
    5y

    @Miguel Bautista hey Miguel! Welcome to BP! The one question I do have is regarding the move from AZ, what are you looking to do in NJ besides real estate? There are a few options to consider, right now North Jersey (Jersey City, Hoboken, Elizabeth) are hot areas and this is where property prices and taxes are one of the highest. If you’re definitely relocating here I would consider doing some due diligence in the more Southern parts of Jersey- Rahway, Avenel, Woodbridge etc.(Get to know the areas, the businesses, neighborhoods). These are about 40 minutes from the city and are upcoming areas. I would be glad to help you take a look at any properties or answer any additional questions.

    Best of Luck!

    1Reply
  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 641 votes
    5y

    Hi @MiguelBautista

    Would suggest getting your ducks in a row and get prequalified to see what you can afford on a 1-4 family. Due to COVID 19 real estate agents do not tend to show properties with out a preapproval letter.

    Regards

    Joe Scorese

    3Reply
  • Mike A.
    Port Chester, NY · Member since 2016 · 210 posts · 157 votes
    5y
    Originally posted by @Judy Parker:

    Don't do it. New Jersey is so expensive and getting worse. Our property taxes are the highest in the nation. We are a Tenant-Friendly blue state, with a tax-and-spend, dictatorial governor, and don't get me started on our 2nd amendment rights. Over the last 3 years I have started investing out of state. I get more value for my hard earned money outside of New Jersey.

     If you think NJ is high, check Rockland and Westchester. They're the highest in the Country.

    These New York counties have the highest property taxes in America (lohud.com)

    2Reply
  • Darren SagerPro Member
    Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    @Miguel Bautista asking where's the best place to invest in NJ is always subject to many different things: Capital on hand, how much your lenders are willing to lend, how risk adverse you are, etc.   So the best place for one here in NJ may not be the best place for someone else.  It's easy to ask what I call the grenade question.  Just throw it out there and see what happens.  Regardless of where you invest in real estate you need to get more granular to make a better decision.  It could have a lasting effect on your bottom line.  

    So perhaps give a bit more about yourself. How you'd buy, what price point you're willing to go to, how many units you're trying to acquire, any prior experience you have, etc. as all those things can only help the community here help you get to the best answer possible.

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    2Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    You would be leaving a much better investing matrix out West to come here where even off-market deals are colossally overpriced and overvalued right now. Unless it's for work or for a relationship, I would stay put or consider smarter moves for investing. If you have to come this way, I would focus on the Philadelphia area more than Jersey.

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    4Reply
  • John Alosio
    Rental Property Investor · Stroudsburg PA · Member since 2020 · 119 posts · 74 votes
    5y

    @Miguel Bautista

    If you must move to Jersey, I'd reccomend investing in Pennsylvania. It's a stone-throw away. In fact I'd say forget NJ and come live in PA.

    I was born nj. I retreated to PA to start my REI career. Currently living /investing in pa, and still commute into NJ for my w2 job. It's worth the 45 min drive to be able to afford housing.

    Clean Air is a nice perk. Along with considerably less light pollution, traffic, & a-holes

    cheers

    5Reply
  • Nicholas Martin
    Rental Property Investor · Roselle, NJ · Member since 2019 · 1 post · 0 votes
    5y

    @Miguel Bautista I'm currently trying to looking to move and invest out of NJ state because the only things that cashflow here are in warzones and the barrier for entry is very high. Not a conducive environment for a newbie investor. Competition is so high that any "good" deals are scooped up immediately.

    0Reply
  • Andrew Scherer
    Real Estate Agent · Perkasie, PA · Member since 2019 · 5 posts · 1 vote
    5y

    Everyone here is spot on!  Jersey taxes cancel out a ton of investment opportunities that would be great in other areas.  With that in mind, we are exploring investment strategies near the shore that would cash flow during the vacation rental season - we've seen some good deals up and down route 9, but nothing that truly fits in the box that we're looking.

    We also see a lot of people in your situation (moving from out of state) who choose to live in PA (outskirts of Philly) due to taxes and potential investment opportunity.  It's all subjective - keep doing your research and get a great agent on your side as quickly as possible; they can share the load with the research.

    1Reply
  • Santiago Romero
    Interior Decorator · Charlotte NC · Member since 2020 · 29 posts · 8 votes
    5y

    @Miguel Bautista it’s tricky. Highly competitive right now specially with covid. There is a higher demand in investors looking at multi

    0Reply
  • Santiago Romero
    Interior Decorator · Charlotte NC · Member since 2020 · 29 posts · 8 votes
    5y

    @Judy Parker haha yes, Jersey is getting very expensive and limited to find anything in the market

    0Reply
  • Brian Allen
    Real Estate Agent · Rumson, NJ · Member since 2016 · 65 posts · 11 votes
    5y

    6 in one hand, half dozen in the other... there are some really great areas of NJ, but you have to know who to connect with and what the $'s are like.  Taxes can be atrocious and some Contractors jack up their prices if they know they are working in relatively wealthy areas.  Stay in AZ for another year! :)  maybe things will be different this time next year but people are overpaying for foreclosures, hoping to ride the renovation wave & lack of good inventory.  Good luck man!  -Brian

    0Reply
  • Miguel Bautista
    OP
    Rental Property Investor · PA · Member since 2020 · 23 posts · 20 votes
    5y

    Thank you all for the support! I am going to brainstorm and do some more research. 

    Thank you All!

    0Reply
  • James Brand
    Investor · Philadelphia, PA · Member since 2014 · 205 posts · 52 votes
    5y

    @Miguel Bautista

    Just over the Delaware there is a lovely place called Pennsylvania :)

    Check it out

    I was born and raised in NJ but have lived in PA the last 15 yrs, I’m about as Far East as you can be so super easy access to NJ. My investments are all I. Philly

    Food for thought!

    3Reply
  • Erik KuhiPro Member
    Investor · Farmingdale, NJ · Member since 2017 · 63 posts · 39 votes
    5y

    @Miguel Bautista

    I live in NJ and have 1 accidental rental property here that is just breaking even. I have 2 properties in FL that make a little cash flow per month. I occasionally look in NJ but haven’t found anything that appeared to be a good investment. There are a lot of multifamily properties all over jersey though and people renting them so it must be working for somebody. I imagine the timing right now probably isn’t too great to be buying. I hear a lot of people are leaving NJ and NYC which I think can bring down prices in the next year or so if that trend is true and continues.

    My best suggestion is to take your time. Do your research and try to find what part of Jersey you’re interested in. If there is any way I can assist please feel free to message me.

    Thanks,

    Erik

    0Reply
  • Tara S.Pro Member
    Real Estate Agent · Mesa, AZ · Member since 2019 · 125 posts · 60 votes
    5y

    @Miguel Bautista

    Me and my husband live in south jersey outside of Philadelphia and are moving to the Phoenix area in the next few months. If you would like to trade information on jersey vs Arizona we would love to connect.

    0Reply
  • Tara S.Pro Member
    Real Estate Agent · Mesa, AZ · Member since 2019 · 125 posts · 60 votes
    5y

    @Miguel Bautista

    We also flip in jersey and just recently collected our first 4 unit buy and hold. What everyone is saying is true about jersey real estate. Taxes are the highest in the entire country. Do a google search to see. This doesn’t mean that you can’t find cash flowing deals tho. Do your homework and you’ll find good deals. Just research the tenant laws. NJ sucks for landlords. We are struggling right now to get a houseguest out of our personal home simply because they are refusing to leave. And by jersey law they have residence here if the sleep on the couch for more than a day. So I would make sure you look at that. We are cashflow into $2,000 off a quad after everything including C.V.R. So that is pure cash flow. We also got that property off the mls. Made a lowball offer but still there is deals out here. It’s not the beat place for investing but if you have to come here for work or something else then you can make it work. I wouldn’t suggest moving here strictly looking to invest. There is plenty of other more Suitable places for that.

    So please connect with us so we can help each other out with the née areas. We are looking to live in Mesa Gilbert or chandler and invest in the entire valley!!

    Best of luck to you!!

    0Reply
  • Boris Portnov
    Teaneck, NJ · Member since 2015 · 49 posts · 11 votes
    5y

    @Miguel Bautista Everyone on this post is hating on Jersey. Let me preface by stating I'm a small time landlord in Bergen County NJ. Yes, we have some of the highest property taxes in the country, yes our winters are harsh, and yes the homes are old as dirt out here....

    So yes, yes, and yes challenges and high barriers to entry in Jersey are prevalent. Does that mean you should write it off? I'll tell you one thing my proximity to NYC has created phenomenal property appreciation especially most recently during the Covid outbreaks, and the relocation craze away from major cities to nearby suburbs. Multifamily homes are scarce therefore if I sell I'm assured a budding war. If the property goes vacant yes the carrying costs to cover that vacancy are high due to taxes, but I've never had a vacancy extend beyond 30 days unless I leave it vacant for renovations. There just isn't enough rentals for all the tenant population.

    Everyone that posted here is absolutely right. It's not easy be a Jersey landlord. You gotta be tough as nails. It's a very landlord friendly state so you gotta get educated and stay in the right. If your willing to take on a challenge you can build a promising rental portfolio that can enable you a steady passive income. I use the term passive loosely because unless your entirely hands off and utilize a property manager then it's never entirely passive. Investing in rental properties is no easy task anywhere you choose to invest and why should it be? Your responsible for providing safe habitation, the number one most vital service in society. Your taking on a crucial responsibility to our society. Never the less Jersey is a beautiful place don't be scared away by the harsh winters and the New York attitudes under the tough exterior is alot of opportunity in the realm of real estate.

    2Reply
  • Ryan Sports
    Denver · Member since 2020 · 21 posts · 4 votes
    5y

    @Miguel Bautista I’m a Nj native, and am seeking to leave here to invest elsewhere. do not move here unless you want to pay 5 digit taxes. too damn expensive for anything

    0Reply
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