Best cities/ markets to flip in NYC / NJ area?

Member since 2021 · 13 posts · 5 votes

Would prefer to do something closer to home so I can avoid having to get on a plane to monitor the deal. Is it smart to do it around here?

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Mark F.

Rental Property Investor · Northern NJ · Member since 2019 · 673 posts · 677 votes

Quote from @Jackson Ebersole:

Hi Piper,It's always smart to flip properties in-state, and I'd like to share some updated insights on why this approach is beneficial, especially in the New Jersey area.Lenders typically feel more comfortable with in-state flips because:

You can manage the rehab more easily
You have better knowledge of local real estate trends and values
You can respond quickly to issues or make decisions faster
There's a lower risk of fraud or being taken advantage of by distant partners

I can help you with recommendations for the New Jersey market:

North Bergen: Continues to show strong potential, with average profits now around $150,000 per flip and a gross ROI of 85%.
Willingboro: While specific flip numbers aren't available, the market remains active with a gross ROI now averaging around 130%.
Gloucester City: Still a top performer, with gross ROI hovering around 180-190%, though still on smaller profit margins.
Irvington: Home values have continued to rise, with a 20% increase over the past two years.
East Orange: Has seen steady growth, with home values up by about 16% since 2022.
Paterson: Experienced a 14% increase in home values over the last two years.

Additionally, Jersey City and Newark have emerged as promising markets for flips, with strong appreciation rates and growing demand. Always conduct thorough due diligence before investing.

Let me know if you need any more information or assistance with your flipping strategy. Please connect with me for looking into financing options to make your flips work!

Regards,

Jackson

4. 5. And 6. Are you kidding me, have you been to any of those areas? No, you haven't because you wouldn't last a day in Irvington. If you're not from a market and have no experience, you should keep your opinion to yourself instead of recommending to a NEW flipper to get started in C and D neighborhoods. Did you have chatgpt write this trash?

More I read it the more its just an AI post. Reported. OP please ignore the bots advice. Listen to Jonathan Greene.

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Ko KashiwagiPro Member
Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
2y
Hi Piper,
Flips are much more active strategies than rentals, so it is a better strategy to stay in state unless there's a very specific reason (ex. too high price). If you have a family member in another state, this could work.
However, BRRRRs and rentals may be considered different, because where you invest when you hold onto a property is one of the biggest decision you can make.
310-848-9776
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William Hutch
Member since 2023 · 22 posts · 6 votes
2y
@Jackson Ebersole are you a HML or do you just happen to know quite a bit about the state? Super helpful info though. Thanks
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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
2y
How many flips have you done? If none, NY and NJ are not the best spot to "try" one as your buy-in is very high, cost is high, lag time is long, and competition is fierce. In Northern NJ, to make 100k, your buy-in price would be around 600k or more.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
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1 Reply
Piper Pepperidge
OP
Member since 2021 · 13 posts · 5 votes
2y
Quote from @Jonathan Greene:

How many flips have you done? If none, NY and NJ are not the best spot to "try" one as your buy-in is very high, cost is high, lag time is long, and competition is fierce. In Northern NJ, to make 100k, your buy-in price would be around 600k or more.
Haven't done any, but I wanted to choose somewhere with a 1hr commute radius so I can keep monitoring it.
0 Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
2y
Quote from @Piper Pepperidge:

Quote from @Jonathan Greene:

How many flips have you done? If none, NY and NJ are not the best spot to "try" one as your buy-in is very high, cost is high, lag time is long, and competition is fierce. In Northern NJ, to make 100k, your buy-in price would be around 600k or more.
Haven't done any, but I wanted to choose somewhere with a 1hr commute radius so I can keep monitoring it.

This is not a good time to be a first-time flipper. What makes you think you can do it right now with high cost of money and extremely low inventory along with a glut of competition who knows more than you? Why flipping?
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
0 Reply
Mark F.
Rental Property Investor · Northern NJ · Member since 2019 · 673 posts · 677 votes
2y
Quote from @Jackson Ebersole:
Hi Piper,It's always smart to flip properties in-state, and I'd like to share some updated insights on why this approach is beneficial, especially in the New Jersey area.Lenders typically feel more comfortable with in-state flips because:

You can manage the rehab more easily
You have better knowledge of local real estate trends and values
You can respond quickly to issues or make decisions faster
There's a lower risk of fraud or being taken advantage of by distant partners

I can help you with recommendations for the New Jersey market:

North Bergen: Continues to show strong potential, with average profits now around $150,000 per flip and a gross ROI of 85%.
Willingboro: While specific flip numbers aren't available, the market remains active with a gross ROI now averaging around 130%.
Gloucester City: Still a top performer, with gross ROI hovering around 180-190%, though still on smaller profit margins.
Irvington: Home values have continued to rise, with a 20% increase over the past two years.
East Orange: Has seen steady growth, with home values up by about 16% since 2022.
Paterson: Experienced a 14% increase in home values over the last two years.

Additionally, Jersey City and Newark have emerged as promising markets for flips, with strong appreciation rates and growing demand. Always conduct thorough due diligence before investing.
Let me know if you need any more information or assistance with your flipping strategy. Please connect with me for looking into financing options to make your flips work!
Regards,
Jackson
4. 5. And 6. Are you kidding me, have you been to any of those areas? No, you haven't because you wouldn't last a day in Irvington. If you're not from a market and have no experience, you should keep your opinion to yourself instead of recommending to a NEW flipper to get started in C and D neighborhoods. Did you have chatgpt write this trash?

More I read it the more its just an AI post. Reported. OP please ignore the bots advice. Listen to Jonathan Greene.
2 Reply
Piper Pepperidge
OP
Member since 2021 · 13 posts · 5 votes
2y
Quote from @Mark F.:
Quote from @Jackson Ebersole:

Hi Piper,It's always smart to flip properties in-state, and I'd like to share some updated insights on why this approach is beneficial, especially in the New Jersey area.Lenders typically feel more comfortable with in-state flips because:

You can manage the rehab more easily
You have better knowledge of local real estate trends and values
You can respond quickly to issues or make decisions faster
There's a lower risk of fraud or being taken advantage of by distant partners

I can help you with recommendations for the New Jersey market:

North Bergen: Continues to show strong potential, with average profits now around $150,000 per flip and a gross ROI of 85%.
Willingboro: While specific flip numbers aren't available, the market remains active with a gross ROI now averaging around 130%.
Gloucester City: Still a top performer, with gross ROI hovering around 180-190%, though still on smaller profit margins.
Irvington: Home values have continued to rise, with a 20% increase over the past two years.
East Orange: Has seen steady growth, with home values up by about 16% since 2022.
Paterson: Experienced a 14% increase in home values over the last two years.

Additionally, Jersey City and Newark have emerged as promising markets for flips, with strong appreciation rates and growing demand. Always conduct thorough due diligence before investing.
Let me know if you need any more information or assistance with your flipping strategy. Please connect with me for looking into financing options to make your flips work!
Regards,
Jackson

4. 5. And 6. Are you kidding me, have you been to any of those areas? No, you haven't because you wouldn't last a day in Irvington. If you're not from a market and have no experience, you should keep your opinion to yourself instead of recommending to a NEW flipper to get started in literal C and D neighborhoods. Did you have chatgpt write this trash?

More I read it the more its just an AI post. Reported. OP please ignore the bots advice. Listen to Jonathan Greene.
Yeah I figured it was lol
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Piper Pepperidge
OP
Member since 2021 · 13 posts · 5 votes
2y
Quote from @Jonathan Greene:

Quote from @Piper Pepperidge:

Quote from @Jonathan Greene:

How many flips have you done? If none, NY and NJ are not the best spot to "try" one as your buy-in is very high, cost is high, lag time is long, and competition is fierce. In Northern NJ, to make 100k, your buy-in price would be around 600k or more.
Haven't done any, but I wanted to choose somewhere with a 1hr commute radius so I can keep monitoring it.

This is not a good time to be a first-time flipper. What makes you think you can do it right now with high cost of money and extremely low inventory along with a glut of competition who knows more than you? Why flipping?

I want to scale, but currently I can only afford to buy 1 (maybe 2) properties / year. I had considered BRRR-ing, but find that the mortgage after I pull the equity out will be too high to cash flow on. Even if I pull out just enough to cover the interest from the HML, the cashflow will still be very low on the properties I ran the numbers on so far. And I know cashflow isn't everything in the beginning an can come with time, but I don't want to acquire a bunch of properties where I'm only going to net 100 / mo after PITI, because with those margins all it takes is one repair to wipe everything.
0 Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
2y
Quote from @Piper Pepperidge:

Quote from @Jonathan Greene:

Quote from @Piper Pepperidge:

Quote from @Jonathan Greene:

How many flips have you done? If none, NY and NJ are not the best spot to "try" one as your buy-in is very high, cost is high, lag time is long, and competition is fierce. In Northern NJ, to make 100k, your buy-in price would be around 600k or more.
Haven't done any, but I wanted to choose somewhere with a 1hr commute radius so I can keep monitoring it.

This is not a good time to be a first-time flipper. What makes you think you can do it right now with high cost of money and extremely low inventory along with a glut of competition who knows more than you? Why flipping?

I want to scale, but currently I can only afford to buy 1 (maybe 2) properties / year. I had considered BRRR-ing, but find that the mortgage after I pull the equity out will be too high to cash flow on. Even if I pull out just enough to cover the interest from the HML, the cashflow will still be very low on the properties I ran the numbers on so far. And I know cashflow isn't everything in the beginning an can come with time, but I don't want to acquire a bunch of properties where I'm only going to net 100 / mo after PITI, because with those margins all it takes is one repair to wipe everything.

You said two things that are extremely troubling - "I want to scale" and "HML". Without experience, both of these ideas are going to net you exactly what you don't want. How can you want to scale now? How many properties do you own? What are you scaling and why when you need to use hard money at 12-16 percent to do it?
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
0 Reply
William Hutch
Member since 2023 · 22 posts · 6 votes
2y
@Mark F. thanks. I was wondering how someone not from the Tristate area would know anything about these areas. Slightly frustrating to see people respond like that.
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