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?
If you are dead set on moving, consider NYC over NJ. Higher paying jobs, lower taxes and higher rents.
House hack via FHA in NYC right now. If you can get a 4 unit and a basement, that would be ideal and create major cash flow and equity creation, plus you can not worry about a property manager and boost your yield.
Personally, I am very bullish on New York and NYC itself. Sure it suffered due to COVID, but you want to buy when there is distress. I think all the folks who moved away are already getting bored and already coming back. Plus, the vaccine is getting rolled out which will curb the spread tremendously. Now is the time to buy.
Cap rates came all the way down to 3% (or below!) during the "boom" times but COVID has loosened everything up and now 5% can be had in Manhattan, 6%-7% in Brooklyn and even 8% in the Bronx. Nationwide rates hit a low of 2.7% - so there has really never been a better time "spread" wise.
Long term, I think NYC will come back as it always has time and time again. I am also a great believer in investing when there is distress and deploying capital when you can.
If you are looking for yield in the short run, Manhattan may not be for you. However, it is certainly the most attractive it has been in years from a cash flow perspective. If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made. And there is still plenty of cash flow opportunities in the outer boroughs if you buy right!
Anyone who doesn't think you can do well in NJ is just wrong in my opinion. We've done very well over the past 20+ years. There's plenty of upside and if you understand what's happening here long term (especially the big news announced in the last week) this will be a great place to make good money. My personal opinion of course. And why we're still investing here.
Grew up and live in NJ. Love the state geographically speaking. Everything else about this place sucks though. Stay away from major cities and it's much more affordable.
between owning a business here and properties I understand why alot of people are leaving.