Is New Jersey investing dead?

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Is New Jersey investing dead?

Justin Wijesinghe
Princeton, NJ · Member since 2022 · 2 posts · 3 votes

I have been trying to buy rental properties in New Jersey for a few years now and I still haven’t landed anything. I have capital, lenders, contractors, just no deals! I can’t seem to find any properties that I can get close to break even rents. Is anyone doing it? What am I missing?

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Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
11mo

@Justin Wijesinghe,

I'm a licensed agent in NJ and have sold here for years, so I’ll be blunt - it’s really tough to make single-family rentals cash flow in most parts of the state.

The reality: high purchase prices + high property taxes + strict tenant protections + costly insurance = very thin or negative cash flow for SFRs. 

That’s why so many investors here either focus on small multifamily (duplex/4-plex) with value-add potential, or Invest out-of-state in markets with better rent-to-price ratios.

If you’re trying to make it work locally, here’s what most people are missing:
Strict underwriting first: If rent doesn’t cover mortgage + taxes + insurance + PM + reserves, walk.

Off-market sourcing: MLS alone won't cut it - look at absentee owners, probate lists, direct mail, and investor-friendly wholesalers.

Creative financing: Seller carry, subject-to, or using HELOC/cash-out from another property can make borderline deals work.

If your goal is real cash flow, the fastest path might actually be to redeploy NJ equity into turnkey homes in the Midwest or Southeast markets like Akron/Canton, OH, Columbus, GA, Birmingham, AL, parts of TX - where numbers make sense, there are strong seller concessions and property management is simple for out-of-state owners.

Always happy to chat more about what's worked for other investors. Best of luck!

[email protected]313-221-8718
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  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    11mo

    Hi @Justin Wijesinghe I am closing on properties every month that have the ability to cash flow.  I just closed on one last week that my client will literally be living Mortgage free.   There is absolutely properties out there that can break even.  There are 2 components that dictate breakeven or better: value add and/or creative rental strategies.   I will let you know the properties that are tough for cashflow will be turnkey, "ABC" type properties.  Creativity is what drives properties success in todays market. 

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  • Melissa JusticeBusiness Member
    Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
    11mo

    @Justin Wijesinghe,

    I'm a licensed agent in NJ and have sold here for years, so I’ll be blunt - it’s really tough to make single-family rentals cash flow in most parts of the state.

    The reality: high purchase prices + high property taxes + strict tenant protections + costly insurance = very thin or negative cash flow for SFRs. 

    That’s why so many investors here either focus on small multifamily (duplex/4-plex) with value-add potential, or Invest out-of-state in markets with better rent-to-price ratios.

    If you’re trying to make it work locally, here’s what most people are missing:
    Strict underwriting first: If rent doesn’t cover mortgage + taxes + insurance + PM + reserves, walk.

    Off-market sourcing: MLS alone won't cut it - look at absentee owners, probate lists, direct mail, and investor-friendly wholesalers.

    Creative financing: Seller carry, subject-to, or using HELOC/cash-out from another property can make borderline deals work.

    If your goal is real cash flow, the fastest path might actually be to redeploy NJ equity into turnkey homes in the Midwest or Southeast markets like Akron/Canton, OH, Columbus, GA, Birmingham, AL, parts of TX - where numbers make sense, there are strong seller concessions and property management is simple for out-of-state owners.

    Always happy to chat more about what's worked for other investors. Best of luck!

    [email protected]313-221-8718
    3Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 991 posts · 646 votes
    11mo

    New Jersey has gotten a lot tougher for investors, prices have stayed high because inventory is still tight. Have you tried to widen your search criteria? Or maybe even consider a different strategy like small multifamily instead of SFR?

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    11mo
    Quote from @Justin Wijesinghe:

    I have been trying to buy rental properties in New Jersey for a few years now and I still haven’t landed anything. I have capital, lenders, contractors, just no deals! I can’t seem to find any properties that I can get close to break even rents. Is anyone doing it? What am I missing?


    Door knocking, mailers, and cold calls. It's going to take a lot more than just searching the MLS and wholesalers to really get a solid deal.

    Even in a market like this there is still deal-flow. You just need to be very active in finding deals. A lot of them are off-market. 

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    11mo

    @Justin Wijesinghe your problem - you think you have to offer asking price!

    Those days are long gone.

    You can still find deals on the MLS, especially at this time of the year.
    They just won't be properties that are highly desireable where you have lots of competition to buy. 

    Look at listings 120+ days old and figure out what purchase price or financing options would make the deal work for you. Then offer that amount. 
    - You may have to look at a 100 properties, make 10 offers, to get one accepted.

    You could also start building and working your own network to find properties BEFORE the owner contacts an agent. 

    Sound like lots of work?

    Yep.

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  • Vaughn Croxton
    Member since 2025 · 10 posts · 1 vote
    11mo

    You’re definitely not alone — a lot of investors are running into the same challenge in New Jersey and other higher-cost markets right now.

    The main issue is that prices haven’t adjusted as much as interest rates have risen, so cash-flowing properties are tougher to find unless you’re putting more down or looking at value-add opportunities. Many investors are shifting their strategy a bit — either targeting smaller multifamily properties, secondary markets just outside the big metro areas, or projects that need light rehab to force some equity and improve rents.

    It can also help to work directly with agents who specialize in investment properties, not just retail listings, or to tap into off-market options like wholesalers and local REI groups. Deals are still out there — they just take more digging and flexibility than a few years ago.

    If you’re consistently seeing negative or break-even numbers, it might just be the math of that market right now rather than anything you’re missing. Some investors are choosing to hold cash, invest out of state, or partner up on larger deals until the local numbers make more sense again.

    Hang in there — persistence and creativity tend to pay off once the market shifts a bit.

    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    11mo
    Quote from @Justin Wijesinghe:

    I have been trying to buy rental properties in New Jersey for a few years now and I still haven’t landed anything. I have capital, lenders, contractors, just no deals! I can’t seem to find any properties that I can get close to break even rents. Is anyone doing it? What am I missing?

    Hey Justin, totally get where you’re coming from—New Jersey’s tough right now, especially with prices and taxes making it hard to find anything close to break-even rents. A lot of investors are running into that same wall in expensive or low-yield states. You might want to look into more landlord-friendly and affordable markets like Columbus, Ohio. I moved here from Portland back in 2020 to focus on investing and now own 10+ rentals, and it’s been a great market for both cash flow and appreciation. The macro picture here is really strong—tons of job growth, population growth, and major companies moving in like Intel, Amazon, Google, Facebook, Honda, Microsoft, and LG. You can still find single families or small multis in the $120K–180K range that hit the 1% rule and cash flow from day one, which is pretty rare these days. It’s also much easier to manage properties here compared to the red tape and taxes you get in states like New Jersey. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
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  • Joseph Guzzardi Jr
    Rental Property Investor · Member since 2019 · 411 posts · 148 votes
    11mo
    Quote from @Justin Wijesinghe:

    I have been trying to buy rental properties in New Jersey for a few years now and I still haven’t landed anything. I have capital, lenders, contractors, just no deals! I can’t seem to find any properties that I can get close to break even rents. Is anyone doing it? What am I missing?

    Brother hope all is well. I have 2 under contract and putting LOI out on 2 other buildings. Happy to share.

    0Reply
    • Earl WhitePro Member
      Attorney · Rutherford, NJ · Member since 2020 · 60 posts · 37 votes
      10mo

      @Justin Wijesinghe Real estate investment deals in NJ are definitely not dead. You may have to lean into some fixxer-uppers and take on some troublesome tenants to find deals (I'm seeing that among my clients properties). I'm also seeing a lot of mixed-use or larger mults. If you have really strong financing in the $600k to $1million range I tend to think you can get deals on the MLS with some looking. What neighborhoods are you looking in?

      [email protected]201-627-2457
      0Reply
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