Anyone doing MTR in NJ?

Question

Hi guys, looking to get started in the MTR market - specifically in bergen county (Hackensack, Fort Lee, etc).

Is anyone doing this successfully atm? Would love some tips/pointers!

Ron Brady · Answer

We are doing it in Burlington County. While we are not close to you, we are operating in a suburban market, which has its unique opportunities and issues. We are still relatively new at it, since 2020, but are happy to share lessons learned.

Tips:

1. We plan for 15-20 percent vacancy. It is very conservative, but it allows us to be patient.

2. Airbnb and Zillow, to date, have been our only source for residents. We post our properties on several sites, but these are the only ones that have yielded.

3. We have targeted the upper middle part of the market. Accordingly, we make sure our properties are nicely designed (by my wife) and that they have slightly nicer amenities (e.g. cable & streaming v just streaming). We believe that it is important for our pricing,  homes and target customers should align.

4. We live in our homes for at least two weeks before we rent them out. This way, we find and fix any problems in advance.

5. Because we are suburban, we make our properties pet-friendly--fenced yard, open to pets, etc.. We believe this helps us open up our potential client base.

6. We consider hospitality and customer service to be our business, not being a landlord.

Happy to share more. Best wishes.

Zachary Deal · Answer

Good luck @David Shin!I would think those areas would be a great place for MTRs due to their close proximity to the city and lower price point compared to NYC real estate. Could be great for folks coming to NYC temporarily for work or looking to relocate permanently. Always recommend checking out Furnished Finder Traveler search ( https://www.furnishedfinder.com/housing/New-York/New-York) and Airbnb/VRBO for 30+ days stays to get an idea of what's currently out there.