Thoughts on LTR in Newark, NJ?

Question

Hi guys,

I am currently in the process of buying a LTR rental property in Newark, NJ near Forest Hill area--this is going to be my first LTR property.

My goal is to fix the property up and rent it out within a month. Any investors in Newark, NJ? Would love to understand the current renter's market in the area and how much I can forecast in rent in Forest Hill area.

Vaughn Smith · Answer

@Aakash Patel did you ever close on this deal?

Joseph Guzzardi Jr · Answer

If you are buying for appreciation this is a good place to be in. Newark continues to show new development. Having said that, be mindful of rent control so if you are looking for cashflow there are likely better options unless you are picking the property up for a very solid discount. Should also look into the prior or current rental registration for said building you are evaluating. There is high rental demand throughout a majority of NJ, this wouldn't be a main concern of mine unless you are going into a niche strategy like STR or MTR.

Shawn Mcenteer · Answer

Hi @Aakash Patel I help in investors like yourself each year buying and selling dozens of multi family properties. The majority of the deals I close are in Essex county, I think ROI is great.  But like all counties in New Jersey, Essex is very much town by town.  Some towns are great, easy to be a landlord lord while other towns not so much.  Newark NJ is one of the worst towns for being a landlord.  Of the dozens of homes I am buying and selling each year I do very little business in Newark becuase my goal is to help clients get to financial freedom without taking on a second job.  Unfortunately with the wacky laws and regulations the city makes it very tough for success long term.