Just got approved up to 400k looking Nothern nj

18 Replies

Am a complete newbie to real estate.....am looking in union county, Essex, however open to other places....there’s a low volume of houses in the market cause prices to shoot up and potential buyers putting higher offers than the house worth....I will be looking at rural areal like some parts of Irvington, Newark, and east orange just to get a nice multi family ......but area must be decent

A multi for $400,000 will either be in not great condition or in an area it sounds like you aren't looking for. You need closer to $450,000 or $500,000 to get anything in those areas. @Vaughn Smith is an agent that specializes in that area. He can probably assist you better if you want to message him. 

FWIW Irvington and Newark are the complete opposite of rural. I don't even think I can find grass in those towns lol. 

@Peter T. is absolutely right.

@Juan Delacruz Essex County has very high taxes.  Check out the Clifton area in Passaic County, specifically the Botany Village or Athenia.  It's on rise quickly, properties are within your budget and there's this project that will require massive housing needs for the general area.  The project is called On3 https://on3nj.com/.

I don't live in NJ anymore but my brother lived in Union City up until a few years ago and I checked out a few properties in the area back then. There seems to be a lot of growth near the light rail and I saw some lovely multi-families that needed some work. Here's a multi-family real estate query for Union City that may help: https://www.realtor.com/realestateandhomes-search/Union-City_NJ/type-multi-family-home/pnd-hide/sby-1

I scour gsmls and njmls every 3 days. NJ is finicky, careful with rent rules, regulations and permitting. If you planning on house hacking, Newark technically has a loophole where your deregulated if its your primary residence and not subject to their idiotic rent rules. 

If you're going to look at Newark there's a new program through the city called "Live Local" https://www.newark-alliance.org/livelocal/ and essentially they're giving out grants of $2,500 to $4,000 if you're renting and up to $7,000 for "approved exterior improvements".  The catch is you have to live and work in Newark or one of the eleven contiguous border sharing towns like Maplewood, Kearny, East Orange etc.  This is a great incentive for your renters, if you don't work in the area maybe you can form a shell company?

Juan, also take a look at greenville área in Jersey city. This used to be bad neighborhood, but the area is seeing improvement due to the growth in Downtown JC has made the prices spilled to the Hights area, Union City, and now Greenville is seeing a lot of new projects. Being close to NY this area are better than Newark or Irvington.

@brandonArce Greenville is not a bad area to invest but the neighborhoods can get a little dicey from block to block, McGinley Square and Bergen Lafayette is where I would put my money in JC.  There are significant plans for both areas with a few of our clients.  If you'd like a development map of JC let me know.

Hey man, 400K is enough to get you into a multifamily in Union County. If you want an urban area then look into Elizabeth. It is a better area than Newark, East Orange, etc.  I would also check out Roselle, Linden, and Rahway. 

Originally posted by @Marcus Lawson :

Hey man, 400K is enough to get you into a multifamily in Union County. If you want an urban area then look into Elizabeth. It is a better area than Newark, East Orange, etc.  I would also check out Roselle, Linden, and Rahway. 

 The property taxes in Roselle will destroy your profits. Stay far away. Linden also has insane property taxes. Rahway is a good city to invest in. Not a lot on the market for multi families right now in any of those three towns/city though. 

Great thread! I'd like to chime in. I'm a new investor approved up to 650k. Looking in Essex, Union and Hudson. I have a couple agents working for me trying to find stuff off MLS but a good portion, like you all have said, are either in horrible neighborhoods or are just crazy prices contrary to what rent is going for. I plan on owner occupying for a year.

Am I being reasonable that I'd like pay less than $700 (essentially my rent) while I live there and then eventually cash flow over $300 after I move out (after expenses)? I talked to one of the agents who sent me about 50 properties and they were all in horrible neighborhoods or the numbers didn't work. He wasn't thrilled I only wanted to see two out of the 50. Thanks!

@Mark F. The rule is 100 Properties, 10 Offers 1 Accepted. So your doing fine. 

@Craig Combs Thanks for the Tip .... 

@Marcus Lawson Thanks for the Info. However I find Elizabeth to be ridiculous with rent control am I wrong?

@David Wrenn Spot on. I know Greenville well, it varies from block to block & Thanks for the New alliance Info and On3 your a wealth of info.. 

@Brandon Arce Greenville is Sandwiched between Heights Bergen Lafayette, and Bayonne so its due to grow...

@Gregory DeRosso Thanks for the Info.

@Gargi Keeling Isn't union City the most Hostile to Investors and Landlords?

@Juan Delacruz Delacruz I think your right, It looks rural, with so many shells and shantytown appearance. Your still right! And thanks for starting this thread I really learned allot here. 

@Peter T. With Shantytown appearance its is indeed rural. So much so for the Garden State motto. 

@Jessica Zolotorofe : Thanks for the referral.

@Juan Delacruz hello Juan. I own two multi families in Union City and Bayonne. It will be really hard to find a multyfam in Union city at that price unless it needs a rehab, which from your comments it does not sound like something you are looking for.

Newark and Irvington... I personally would think it twice. May I suggest Elizabeth. Some areas are nice, a few months ago I ran into a triplex on a main ave. With about $6K monthly income potential completely renovated.

Good to know about Union City, NJ - I haven't gone far enough in the process to know. I AM familiar with Ewing, NJ (good deals, but lots of bureaucracy).