Rehabbing and House Flipping - NJ & NY

6 Replies

Hello fellow rehabbers, I am just starting out and wanted to know if anyone's having success in this area, if so:

What are your favorite markets for flipping in New Jersey and New York?

Are you focusing on lipstick deals or major rehab deals?

What's the average purchase price you go after?

9086927366 | http://builtbyjmc.com

Originally posted by @Michael Rubino :

Hello fellow rehabbers, I am just starting out and wanted to know if anyone's having success in this area, if so:

What are your favorite markets for flipping in New Jersey and New York?

Are you focusing on lipstick deals or major rehab deals?

What's the average purchase price you go after?

While I mostly focused in buy-and-hold, I do know quite a few people doing flips in the NJ area. In NJ, you might want to check out Union County.  Price point is around $350-450k retail value.

Unless you move to a higher price point areas (ie. closer to $1mm), or you get the deal extremely cheap, it is very very difficult to find a major rehab deal that would make sense.  As an example, in the area where I focus in (Jersey City excluding the nice, developed areas), I can't even possibly develop a new built 2family house there.  The reason is because it costs more to build a house than a "new" house in the neighborhood would be worth.

@Michael Rubino search your county for all the cash sales and see where people are actually investing in your area. That will give you a very good idea of what price point investors are buying at. My brother and I are about to start our first rehab in Merchantville 1 hour away from where we live. It needs a roof, kitchen and the rest is mostly cosmetic. Anyway that's where we at right now but we'll be stepping it up very soon :)

Thanks for the input guys. I find the market in NJ to be very interesting. You have areas like Trenton NJ or Salem NJ where houses are going for 0-50k but are renting for 1k per month. Then you have areas where you can't find a home for less than 300k and those are renting for $1500 per month. They cost 6x more but only rent for half more. 

From a buy and hold standpoint, you get a better return on areas like Trenton (if you find good tenants). From the flipping aspect it seems you have to find something for around 250k that needs 50k in rehabs with an ARV of 350k.

I was curious if people were really having a lot of success flipping here or if it's just a much better deal in this area to buy and hold. 

9086927366 | http://builtbyjmc.com

@Michael Rubino I've sold houses to buy n holders and flippers from cape may county to Sussex county and not of them were from biggerpockets. What I'm saying is there are hundreds of people flipping in nj they just don't know about BP! I'm selling a house in Willingboro to a couple of guys that have 5 flips all in different stages. Our rehab project we have for 80k, arv is over 200k :)

It's how you buy that is the key. You won't find great deals on the mls maybe good ones but not great. Around where I live we have guys paying hundreds of thousands of dollars just to knock it down to then build a brand new monster in its place and list it for a million plus. It's all relative.

Ps I stay away from Salem it's a ghost town!

This post has been removed.