Monmouth , NJ · Member since 2017 · 21 posts · 4 votes
Hi,
I'm interested in buying duplexes in my area for cash flow , hold, and appreciate .
Im open to other types of investing but that's where I chose to stArt
Background: in New Jersey there are tons and tons of areas re developing (jersey city , New Brunswick , Newark, keasby , Woodbridge , Perth amboy etc). Developers are putting in the large ones hundreds of units and smaller maybe dozens in several new apartment buildings.
Question: based on my investment strategy listed above
A. Would that help areas that I am targeting to boost median rent , or would it hurt because it's adding inventory and raising prices on real estate
B how does one capitalize on these large commercial deals?
Thanks
Jeremy
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
9y
You can look at it two ways, building of big apartment buildings means that the town is due for growth and will be drawing in a lot of renters and you may be able to charge a good rent, not everyone wants to live in big buildings and would rather rent smaller places but be by everything. the other way to look is that the market will be over saturated with rentals and yours would need to stand out, how do you market it, do you lower rent to draw the people or do you fix it up and heavily advertise it to try and stand out. i think if you invest in those areas you need to upgrade and advertise, appeal the class of people they are trying to draw to the area, may be worth finding out who the developer is and asking them what market they are targeting, if they will share with you that info.
Real Estate Investor · Jersey city, NJ · Member since 2014 · 4 posts · 0 votes
9y
One the ways that i found to capitalize on the large development projects by big developers is to buy in surrounding areas close to them. In 2015, I bought 3 family in the Bergen Lafayette. It's about a 10min drive from downtown Jersey city Grove Street path where there is a lot of new development. Some people are getting priced out by them, looks for lower rents but still have access to transportation,resturants,bars. So my area while not being as developed still has access .I was able to raise rents by about 35 percent in 2 years.
Investor · Howell, NJ · Member since 2016 · 16 posts · 0 votes
9y
I think that you'll benefit from appreciation and interest in the area. However the risk comes from competing against the amenities and buzz that the bigger developers can offer. Strategically I would try for locations very close to new development so you get the full effect of their coat tails. Offering just below their price point could help attract the tenants who want to be close to the new action without paying full price.
Good question! Best wishes.