im looking to purchase a investment purchase my 1st one here in nj where should i look at?
lotta people are buying in newark these days
@Eric P. thanks im looking for buy and hold do you have any investment properties in nj?
I invest and live in Newark nj
what about paterson?
My friends at http://www.rockcapitalconsulting.com/ might be able to help.
@Mario Gonzalez It in part depends on what kind of investment you mean, buy and hold, flipping wholesaling? There are good deals just about everywhere. I believe the best place to invest is where you know the best. The people who know the market the best tend to get the best deals.
If you live in Patterson, unless there is some strong negative about Paterson like it is a dying town, that is probably the place to start.
I would stay our of Jersey City I have a patch of land investment that the flipper had trouble with removing tenants and finally got to refinance after running almost a year late and did not sell
- 71 1/2 Virginia Ave,Jersey City, NJ 07304
Paterson is challenging, if you don't know the right spots. More importantly you need the right people to manage the property. I had a hard time a while back,but was able to turn it around. I'm happy I stayed in there. It's a great area to really learn the business.
@Mario Gonzalez where you should invest would first be dictated on where you can afford to invest. First thing I would do is find a reliable money lender and see what you actually get pre-approved on a mortgage if you're going to invest in a buy & hold. Doesn't matter where everyone here on BP thinks you should put your money. You need to find out what your limitations are first and foremost. Then, in my opinion, get into the best neighborhood you can afford so that you have the chances of better tenants & the best overall experience which would allow you to build a solid performing portfolio.
@Eric P. a lot of clueless people buying in Newark right now.
Account Closed stated, a lot of people are clueless buying in Newark right now.
@Mario Gonzalez - Get your hands on a deal analysis calculator, there are one's here on BP, and then get on the MLS and look at every single thing for sale in your target market. You're almost guaranteed not to find a deal this way, but it will give you a great education on your market. Start with Paterson, even if you don't intend to invest there, as you have the added advantage of knowing your town. Try to match up what your research shows you and what you know or thought you know about your town.
Going through the effort of analyzing lots of properties will also help you with figuring out what your own criteria are and what you are looking for in investing.
Let me know if you need help with anything, I'm just across the river.
@Ray Reed Paterson is very challenging area i grew up here all my life, even the decent areas are fill with crime, my street was involve in a shooting 2 times this year and where i live is a decent area. Plus the property taxes here are higher than other towns.
@Ned Carey the kind of investment im looking for is a buy and hold, im trying to get good COC im thinking long term as 30 years from now. I was thinking of buying foreclosures and rehabbing them than renting them out. Paterson is not a good area i know their are many many investors here who buy the property and section 8 them. not looking to do that right away maybe down the road, for the most part most people i know in certain areas do pay their rent.
@Steven Picker i was told jersey city is a good market for a buy and hold?
Account Closed thank you i will do that, im trying to figure out what would be a good benchmark to go against for example, should the property i purchase be 10 to 20% below market value, should i buy short sales or foreclosures than rehab them refinance them than rent them out etc. something of that sort of line.
I live and invest in Newark and Irvington Nj . I must admit these are rough towns . Anyone investing in these areas must be really street smart and know how to relate to tenants in class C Neighbour hoods , with that being said I love investing out here . I only invest in properties if I can buy at 35 cent on the dollar if I am buying it cash or 70 cents on the dollar if I am getting financing . I am not buying in any area where I don't feel comfortable enough to walk the street at night. I have lived in most of my properties while getting them ready to be rented. I am already getting infinite returns on all of my properties. Yes the new mayor is making it harder for slum lords to invest in the city . As long as I can get these returns I am getting I will be buying in these towns
Only been investing Newark & Irvington for 4 1/2 years so I must be one of these clueless investors
Hello - I am starting from a similar point as Mario, looking to purchase my first investment property. I rent in Jersey City Heights currently and have been watching listings in the area (the Heights, Journal Sq, Union City, West New York) for a few months. My thought was to find a multi-family (preferably 3-4 units) and owner occupy. My budget is 400-500k. I was told a lot of investors in the area are speculators, sacrificing cash flow for hope of appreciation - is this accurate?
I'm also struggling to find a realtor that doesn't speak in 3 word sentences or even wants to meet in person to discuss my goals -- maybe it's just the area, heavy competition, and a lot of "investors" (probably like myself) who spin people's wheels without ever getting really serious.
I'm also considering areas like Montclair and Bloomfield because of easy NYC access - they seem like they could be safer with longer term tenants, but I'm not as familiar with the rental markets.
I'm reading and digesting as much as possible, getting familiar with terminology/concepts, but I'm struggling in general to get focused and be confident that I'm going about this the right way. Any and all advice is very welcome!
Hi @Mario Gonzalez,
Welcome to BP!
First couple items you should think about.
What type of properties like?
Do you own now or rent?
What can you afford and prequalify for?
Once you figure some of these questions out you will have better direction and build your power team out for success.
Let me know if you have any questions.
This post has been removed.
@Jordan G. im in the same boat trying to stay focus and confident on going ahead and getting a property. I study the terminology/concepts since high school since i just graduated college 6 months ago in finance im more aware of things and just want to make sure im heading the right direction. Im not sure if its not reasonable to pump out 1k net in cash flow in a multi family in Paterson or union or best bet to invest out of state.
@Omar Ismael I'm a member of the NJ Property Owners Association for many years now. It's my understanding from it's President Derek Reed that there is a large group of landlords that have a court action with the city because it's rent control laws are so restrictive it's incredibly difficult to be able to raise the rent at all. Most people here on BP are clueless to the new law they enacted when the new Mayor came into power after Corey Booker left. I would say it's one of the most restrictive i've read, ever.
I don't see how anyone can consider purchasing in Newark and not take this into consideration. Since most here on BP are clueless to it, those recommending others that Newark is a good place to invest long term I don't feel are doing those members a good service.
The last time I spoke to Derek I asked him if they had made any progress with getting the law updated to be "fair" to both sides. His comment was that it was still as it was recently enacted and they still were trying. That was more than 2 months ago.
I just can't see how anyone can go in there and purchase at current prices and think they're going to make good rents not knowing the roadblocks the city put in place to stop you from easily raising rents even in between tenancies.
@Darren Sager after read much and doing research many people are saying newark,union, eliz, areas are good for long term which is what i want. However since you explain this new law place in newark, i would rather work in areas that i can see better return. Im looking for a multi family home where i can manage a net positive cash flow of 1k plus, i hope this is the avarge, where else meaning other towns can i look into for a good deal? the property i am looking to get i will live in one unit and rent out everything else. This is my 1st purchase, i have 760+ credit, i have down payment funds and no debt. my budget is 240k to 380k. I was thinking of doing the stragety im hearing alot about which is buy-rehab-rent out- refinance so i can get the down payment back. what's your feed back on this?
@Mario Gonzalez Are you looking to purchase using all cash? The buy-rehab-rent-refinance strategy only works when you're purchasing with cash. If this is your first purchase, I feel you should take advantage of the low interest rates (a smidge under 3.5%) that are currently available because the feds have been hinting that it will go up soon by going the conventional route.
Additionally, there's always the FHA if you're planning to owner occupy it. Also, I've discovered recently that there is a company called SoFi that will give you a mortgage for up to a 2 family if you're owner occupying at 10% with no PMI. It follows most conventional loans in that it needs to be in move-in condition, so not sure how much of the rehab value you'll get out of it for the future refinance.
@Mario Gonzalez you stated Paterson is challenging and filled with crime. I don't think it will be any better in Newark. Newark is ranked as a more dangerous city than Paterson.. You definitely have to know the good pockets. Elizabeth you have to know the good sections also like Elmora. Union , Linden and Rahway are good in Union County for multifamilies.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.