I am from NYC and interested in purchasing property in Newark for passive income.
I'm curious to know which are the best zip codes or neighborhoods in the area?
Thank you in advance
Someone recently recommended the website www.richblockspoorblocks.com to me. Its awesome for analyzing a lot of different demographic data for any particular zip code and uses interactive maps. You can search and compare zip codes based on income, marital status, home ownership, population change, etc. I believe you get a certain amount of free searches before you have to pay to use the service. Give it a look, its pretty sweet.
@Alex Bekeza awesome thanks!!
Newark really isn't the type of town where you can rely on zip codes for guidance. Even within some of the "better" zip codes (07104, 07107, 07105 07102) are blocks that are really tough to deal with. You really need to consult with someone who knows the area really well before you buy. That being said there are still some really good deals to be had in Newark and you can do very well there. Best of luck!
@Arthur Faison absolutely! You are welcome. We are all here to help one another.
My secret weapon since grad school:
EDIT: It's not so secret, now, huh? Really, people don't realize how many free resources are out there.
@Terry Miller haha thank you for sharing your 'secret' weapon. I love new finds! Much appreciated.
Very new to BP/real estate investing and also looking to invest in Newark. Thanks for the great info on this thread! Would love to meet up with others here to learn more about the opportunities in Newark.
I purchased my first multi family investment property in Newark earlier this year and as stated earlier Newark is really based on the block you purchase because some have a higher amount of vacant lots or vacant homes. Local people from Newark are apprehensive of renting in the South Ward, however it is very close to Newark's Penn station and easier for people moving from NYC to travel to. Weequahic looks nice and is closer to Newark airport. If you want to invest in a higher income area you can look into the Iron bound section.
@Lashawn McCauley thank you so much for your advice and recommendations. May I ask in which area of Newark is your multifamily? Because of how fragmented the Newark market is I am just curious to know, how long have you had your property and what is it's cap rate?
@Radaisy Ramirez I purchased in January of this year in the South Ward on 11th street with a 4% cap rate with a positive cash flow. The rent rates will continue to increase due to the amount of people from NYC looking for affordable places to live that is within a good distance. @Amir Pinnix The property needed some cosmetic changes such as remove the carpeting and added flooring and paint. I also i gave new tenants by adding a refrigerator (which is not common in Newark because tenants purchase their own). Next I will repaint the hallway to give it a better appeal.
As @Lashawn McCauley stated Newark is a block by block city. I noticed it has been improving as they are developing many areas mainly downtown Newark. It is getting competitive and you will need a good investor agent to help you move forward and not be afraid to pull the trigger on a deal once you find it. I'm getting ready to close my second property in Weequahic area. I closed on my first once in December of 2017 using an owner occupied FHA loan. I'm currently living rent free with some extra cash for reserves. It has been an interesting experience and have learned some costly lessons which I won't forget. my suggestion is continue to meet with people in Newark to get a better understanding of the areas, find an investor friendly Agent who himself invests in Newark, drive by the area day and night to see which area suites you best. Continue to utilize BP to meet people who are investing in Newark and reach out to them, these are the friendliest people you will meet who wouldn't mind answering questions.
@Radaisy Ramirez welcome! Check out the weekly Monday MEETUP at La Rouge restaurant in Newark. Its a good place to start, meet local REI , and gain knowledge about investing in Newark. I have an investment property in Newark and it's been a learning experience. Good, bad and ugly. Definitely all worth it though. Good luck!!
Young investor looking to get starting in Newark as well, awesome thread! @Kerryanne Henry what are the details on the meetup?
Thank you all for all the great advice.
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