Investor · Belleville , NJ · Member since 2015 · 10 posts · 3 votes
I'm a new investor that just purchased a rental property in Irvington NJ. I have since been warned to get out of the property and that Irvington is not the place to be due to high taxes, tough neighborhoods, and high risk tenants. I will be managing the property myself and I am very aware of what I have signed up for, but I am curious to hear feedback from other investor that may have invested in (Irvington) or may have avoided this area. Why have you invested in or avoided the area?
Property was purchased for 19K and was a complete gut rehab (done with 40K). The rehab is 80 percent complete and will be listed for 1500 a month (3BR, 2bath, forced air, driveway)...getting antsy as rehab completion draws near.
Hi Owen,
I actually bout my house in upper Irvington which needed rehab work. We bought for 17.5K, then rehabbed ourselves spending a total of $50K (purchase and rehab). We're about to buy more because we plan to invest (buy and hold) more into Irvington mainly because we plan to redevelop the township. The taxes do not bother me as they are around $4K/yr for some and $6k for others I've seen. Upper Irvington is the way to go if investing. I'd stay away from the numbered streets as that's much more to deal with with higher crime rate, poverty, etc...Only problem with Irvington I see is you will have a niche group of buyers or renters. Most ppl will not want to buy a home in Irvington unless investing. Rent however?Yes! I will be working with the city council to progress Irvington! It will be redeveloped it's just a matter of time! I'm not in investing just to make money I plan to make a difference. I think with how low some of the houses are its still beneficial to buy and hold or even flip if a buyer is presented. Newark once had a very bad reputation and now it's being redeveloped dramatically! Irvington much smaller and close by can be also!
Hi Owen,
I actually bout my house in upper Irvington which needed rehab work. We bought for 17.5K, then rehabbed ourselves spending a total of $50K (purchase and rehab). We're about to buy more because we plan to invest (buy and hold) more into Irvington mainly because we plan to redevelop the township. The taxes do not bother me as they are around $4K/yr for some and $6k for others I've seen. Upper Irvington is the way to go if investing. I'd stay away from the numbered streets as that's much more to deal with with higher crime rate, poverty, etc...Only problem with Irvington I see is you will have a niche group of buyers or renters. Most ppl will not want to buy a home in Irvington unless investing. Rent however?Yes! I will be working with the city council to progress Irvington! It will be redeveloped it's just a matter of time! I'm not in investing just to make money I plan to make a difference. I think with how low some of the houses are its still beneficial to buy and hold or even flip if a buyer is presented. Newark once had a very bad reputation and now it's being redeveloped dramatically! Irvington much smaller and close by can be also!
Owen we also purchased a property in Irvington, but upper Irvington. The number streets, which represents the Eastern or southern part of Irvington bordering Newark, is a lot rougher than upper Irvington. So be careful. On what street is the property? And how many units? 40K seems extremely low for a good rehab unless you're talking about a single family or something. And I agree with Danielle. $1500 is a bit high for rent.
Danielle and Ibrahim thanks for the input. Similar to you Danielle and you Ibrahim, after reviewing your website, my goal is to have my RE investments serve dual purposes, improve communities as well as earning returns on my investments. My expectation is to not sacrificing one for the other. Ibrahim we spoke briefly via direct messaging some time ago. The property is a single family on Nye avenue between 20th and Coit street. Unfortunately its literally on the border of Newark and Irvington. Without making any excuses I received bad direction from someone I considered a mentor without doing my due diligence and I am playing catch up now but have gained tremendous knowledge.
I greatly appreciate the feedback from both of you and I am trying to make the best out of this situation. In both of your opinions (besides not purchasing this property, to begin with) what would you suggest doing?
Houses don't sell for much in that area if any, and rents avg $1000/$1100. Your best bet is to rent it out until you're in a position to get rid of it!! Unless you screen well and get fairly good tenants. Or allow a lease option. I'm coming across people who are looking to rent to own. That's another option in terms of renting and eventually getting rid of it. They will take care of it as their own with the intention of owning it in x years! :)
Owen, yes I remember now. Did this "mentor" benefit from your purchase (i.e. sold the house to you)? And I agree with Danielle. I don't know the numbers but renting is probably your best option at this point. It's all about tenant screening and property management at this point. I would read all I could on these subjects and get questions answered before pulling the trigger if you're unsure about something. I didn't look at the rents yet but as a single family 1500 may be doable. Best to have some comps pulled to see what you're realistically working with.
Ibrahim he didn't benefit but the realtor and attorney he referred me to did...he may have! Checking comps hasn't been easy ( local realtors for some reason refused to give me info, received comps from realtor outside of Essex county) but I know for a fact three other comparable units in the area are currently rented for 1500. I've definitelybeen reading up on property management and tenant screening.
I have lived around the area and have always found Irvington to be a very interesting and challenging area. If anyone in this conversation had to draw a boundary box for best investment areas what would it be. Also, what would be the 2nd tier option?
I spoke to a property management company that specializes in Newark and the area and they said that Irvington has an additional city inspection for rentals. The PM charges an extra fee for the extra need to meet the inspector and I believe the city charges too. SF rentals in high turnover areas scare me personally. Like one of the other posts stated that most buyers will be other investors and it will be hard to get a good retail buyer so you're limited. Investors want it for free. You can make money but I'd advise multi family. All the best to you.
@Michael Brown and @Marty Happle thank you both for your responses. Michael I must agree Irvington is a very interesting place! Marty I noticed in your profile that your are a part time investor. How have you managed to balance your time with finding, evaluating, rehabbing and marketing property or do you primarily invest in notes? As a new investor still trying to figure it out w/o a team (yet) it has been time consuming but I am definitely up for the challenge. Thank God for the support of my wife who by the way will not step foot into the Irvington property lol!
@Owen Buchanan I have some flexibility with my day job, but I just do a lot of it in the evenings. You may say I have 2 jobs then I guess. I make time for my wife and 2 year old son and my wife is pregnant, due in July. I use partners in my flips and the note business is quiet right now, but when I do buy a new pool it will pickup. Eventually something will have to give. Owning property in Newark is much more time consuming than I anticipated. I don't know if it is Newark or if I just got a tough run of tenants but it hasn't been easy. I use a management company for my rental, but we just started working together so I'm still involved. Soon it will be totally all in their hands. They find and screen the tenants which is something I would not be able to do at all. There are no flippers in the top 500 richest in America I think, you have to own property or the paper so this is my long term goal. Flips is capital to get there.
@Marty Happle congrats I have a soon to be 5 year old and 1 year old. They are the reason I took the big plung in REI. I do most of my work on the weekends. Had a tough run with finding a decent GC, but its working out. I don't think Im ready to go the property management route but I am interested in starting my own property management business in the future. I figure this Irvington property should be a great start...it might even become a niche market for me who knows.
@Owen Buchanan I have some flexibility with my day job, but I just do a lot of it in the evenings. You may say I have 2 jobs then I guess. I make time for my wife and 2 year old son and my wife is pregnant, due in July. I use partners in my flips and the note business is quiet right now, but when I do buy a new pool it will pickup. Eventually something will have to give. Owning property in Newark is much more time consuming than I anticipated. I don't know if it is Newark or if I just got a tough run of tenants but it hasn't been easy. I use a management company for my rental, but we just started working together so I'm still involved. Soon it will be totally all in their hands. They find and screen the tenants which is something I would not be able to do at all. There are no flippers in the top 500 richest in America I think, you have to own property or the paper so this is my long term goal. Flips is capital to get there.
@marty happle : Hey Marty, I am very interested in how your journey has progressed in these last couple of months as I am looking to start investing in Newark most likely. Therefore, if you don't mind of course: - How's it working out with your investments in Newark? - How's the property management company? (do you mind sending me their name via message?) - Would you do it again?
Good information, i am meeting with some investors in Newark this Saturday. Any update or information on your progress @Owen Buchanan or @Marty Happle? I grew up in Paterson NJ and currently live and am a part time investor in MD. Any one have any information on solid property management in Newark area?
@Account Closed I'm still finishing up the rehab. I ran into some difficulties hired a contractor that quit midway through the job once I found out that he didn't pull the appropriate permits. Ive been doing some of the work myself when my schedule permits. Due to the location being a HIGH management area I have also been dealing with individual illegally dumping in the properties driveway. This property is a buy and hold but now I'm reconsidering. My experience with the Township has been horrendous starting with first obtaining the temp CO to purchase, down to them wanting to charge me for the property being vacant prior to me purchasing. All in all as a newbie it has been quite the learning experience and once the rehabs done I look forward to the next property.
Owen Buchanan you and me should partner up if you still wanting to invest in Irvington or even Newark has they are pretty similar.
I'm a NYC investor and the market here has dried out. I have been studying, analyzing and driving by the area in Newark for the past 3 months and see potential but also the stress that comes with it.
I have heard about the CO being difficult and here in NYC we don't deal with that at all so now that's something I have to study about.
I read you purchase that property for $19k which is excellent, would you be renting it to section 8? That's what I would plan to do.
What other difficulties you had? And any tips for an outside investor?
I would definitely consider partnering. I live give or take 10-15 minutes away from both towns. As far as tips...hire reputable contractors which you may already know, stay away from the numbered blocks, if property is vacant Irvington assesses a fee of $500 fee per year, vacant property must also be fenced in if vacant as well. How is everything going on your in? Are your intentions to buy and hold? Stress that comes with, it is an under statement, especially with a full time and wife/kids lol.
Owen Buchanan all is well here in NYC but it's dried out so I'm moving to NJ soon to focus properties there full time. Buy and hold is my intentions, how did you this property at that great price? I been on some auctions that also been good deals
BP is great! I love it. I have been searching to find a neighborhood to buy my first property. I came across Irvington, NJ and the numbers looked great. Based on the websites, the neighborhood didnt seem great. Thanks to my buddies above I learned that the numbers streets are generally not in a good neighborhood. I was looking at a cash on cash return of about 30% with a cash flow of $1000.
Do you guys advise staying out of the numbers street part of Irvington even if my cash on cash return is 30%. Numbers look great, neighborhood isnt great and taxes are really high.
@Nauman Shah the return for the number streets are good. I'd advise only doing it if you have a team of re professionals who can help make the process run more smoothly, I.e Property Management, Contractors, City's officials relationships and of course the extra capital availabale for vacancy, unexpected occurances. Much luck and success to you on your investments. :)
@Owen Buchanan sorry to hear you have gone through some difficulties. I am currently going thru some of my own with my ohio property. The good news is ur learning sooner and at a faster pace by going thru it now with smaller funds as opposed to later with larger funds! Take everything as a learning experience and definitely utilize the experiences of others. Also theres always an opportunity to syndicate deals. I actually know an investor/contractor who likes areas like yours so he might be interested in working something out with u. Send me a direct message. Wish you much success on your future investments also. :)
@Danielle Hayes-Ward Thanks for the valuable information. I think I am going to reconsider this area and come back when I have enough experience since it seems like a more complex area in terms of its dynamics. I am a beginner and looking for my first property so I need a smooth process with minimum issues.
I am a new investor in Irvington, NJ and I just came across this post. I just finished my first investment property and I am very excited about it. I bought the property 4 months ago and it needed a total rehab. The advantage that I have is that I have local contractors that I trust them so much and they have been great to work with. Today I finished my 2 family home and it is a brand new 2 apartments on Grove Street. I will start listing it for rent next week. My advise to any new investor in the area is that you have to know what you are getting yourself into before hand. I had challenges with the town and especially PSEG but I was able to over come with patience and working hard at the issues that came my way. Nothing come easy guys and everything you have to work hard for it to make it happen. I just closed on my second property in Irvington, NJ and I am looking forward to my next challenge. My view is that Irvington, NJ is a great investment opportunity with a great potential return. Please let me know if you need any advise or have any questions. Good luck to you all.
@Hany Mostafa I believe Irvington is a great opportunity as well. I would appreciate an opportunity to pick your brain on your experiences as well as feedback on situations I have encountered.