What to Look for In Your First New Jersey Real Estate Investment

There’s a lot to like about New Jersey real estate investing. Like, for example, getting a constant cash flow, while your property’s value increases over time. Plus, the fact that you can sell your property anytime is a nice financial security blanket. But, as profitable as it may seem, real estate investing isn’t easy to get into, with extremely high capital being the biggest barriers for those interested on growing their money this way.

If you’re interested to invest in New Jersey real estate, it’s imperative that you make your choice based on logic and cold-hard facts.

Below are five things that you’ll want to consider when first venturing into real estate In New Jersey:

1.     Condition of the Property

Flipping a run-down house is a potential gold mine if you know what you’re doing. If not, then you’d be lucky to break-even considering how easily the costs for repairs and renovations can rack up.

Common red flags to watch out for are structural issues, mold and asbestos abatement, and pest problems.

2.      Location, location, location

Location is also equally important. It doesn’t matter how good the condition of the property is if it’s located in a bad neighborhood. Where the property is located can determine if you’re going to attract good payers and how often it’ll be vacant.

A good measure of how good a property is if the rental properties around it are constantly full and fetch a good price. If the other rental properties in the area have long-term and good paying tenants, then you most likely have a bargain at your hand.

3.     Is a School Nearby?

Being located near a quality school can drive up the rent prices of your property, so take that into consideration when looking for houses for sale in New Jersey to invest in.

If there are no nearby schools, then you may want to skip on the property. Although there’s never any shortage of tenants in New Jersey, a property located near a school will attract families and they usually are the best payers and stay for years at a time. Not to mention that a property located near a high-quality school will fetch a relatively high price on the market in the future.

4.     How High Are the Taxes?

Investing in New Jersey real estate means that you’ll have to be prepared for high property taxes. But, just how much depends exactly on where you want to invest in. Because, sometimes, it might just be worth it to pay a premium on property taxes on certain properties.

For example, if you find a property located near a school and in a good location, then you can ask for a higher rent, which means you won’t be losing as much to the higher property taxes. In line with this, it might not be worth it to buy a property with low property taxes if the location is not ideal since you won’t be making as much from rent anyway, not to mention you’ll have a hard time finding good tenants and selling it for a fair price down the line.

5. Average Local Rent

Knowing how much a typical tenant has to pay for in your area can go a long way in telling you if a particular property is profitable or not since you can use it as a baseline to calculate if it’ll be enough to cover enough of the expenses.

Think long-term as well. The rent might be high right now, but what about in the future? It’s not unusual for savvy property owners to sell their houses if in case they know that their neighborhood is on the decline, or if property taxes are going to increase by a lot in the future. This is why it pays to do your research on the area so you can project the possibly outlook at least five years from now.

Investing in New Jersey real estate is a wise choice, but only if you know what you’re looking for.

 

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Estefania Castaneda
Estefania Castaneda
17:24 04 Sep 21
Extremely pleasant, attentive to all my needs always. It was a pleasure renting an apartment from Ken.
Vichai Soysouvanh
Vichai Soysouvanh
14:17 03 Sep 21
Can't say enough about Ken and his team. This was the most seamless sale I made. I didn't have to deal with all the... nonsense that comes with selling your home. They bought my house as is, I didn't have to declutter and pay a broker commission. All in all great experience, will do business again.read more
Niki Keser
Niki Keser
17:46 06 Aug 21
I had a wonderful experience renting one of their properties for 7 months. The apartment was beautifully remodeled and... Ken and his team were always responsive to any needs. I would recommend to anyone looking to sell or rent.read more
YASMINA VASQUEZ
YASMINA VASQUEZ
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Ken and his team were professionals ,they promised and they delivered or anything
Alfredo Garcia
Alfredo Garcia
03:20 17 Jun 21
Selling my property too Ken was the best thing I did. Although I was skeptical at first I soon found out how... professional he was. Even though my closing contract was not standard because of the pendemic situation. He followed through on time with all the contract terms as promised. Thank you Ken for your professionalism.Alfredo Gread more
Vishrut Patel
Vishrut Patel
23:27 19 May 21
Ken was referred to us by someone who had sold their home thru Ken last year. From the first meeting to the last... transaction, Ken and his team were professional, efficient, easy to work with, and above all.... caring. Each seller's situation is different, and Ken truly understands that. We were treated with respect each time.Since we were in a time crunch situation, selling our home with a cash offer from Ken was the best decision we could have made. We were perfectly okay with getting slightly less money for our home as compared to selling it via an agent. But if you consider the money saved on agent commissions (both buyers and sellers), closing costs, repair costs, attorney fees, and most important of all... time and headache, you can't beat the option to sell your home with a guaranteed cash offer from a reputable buyer like Ken.My wife and I were very pleased with our experience with Ken. If you are in the market to sell your home fast for a cash offer, I highly recommend giving Ken a call!Best of luck!Vishread more
Christopher Martino
Christopher Martino
14:19 10 Mar 21
Ken and his team were great. They were easy to work with, professional, and responsive. If you are thinking of selling... your home they offer a super easy process.read more
Chelsea Grant
Chelsea Grant
15:36 03 Jan 21
I am a travel nurse and stayed in a town home for 3 months... It was exactly as described and any issue that came about... was handled within a few hours - I would definitely recommend and I would definitely stay again!read more
Aaron Zachko
Aaron Zachko
12:41 14 Aug 20
Amazing experience! Ken was upfront, quick and got the deal done in no time. Having done a number of real estate... transactions this was by far the easiest and smoothest. I would unconditionally recommend him to anyone looking for an easy, quick and fair transaction.read more
Joseph Tricarico
Joseph Tricarico
19:10 26 Mar 20
Ken is a very professional individual from start to finish. As promised, he gave me a fair deal on my one of my... properties that was in rough shape. He was knowledgeable and responsive to my requests and as promised we didn't need to waste time with inspections and appraisals and we closed quickly. He made it painless as possible by having his crew handle the clean up. This was truly a quick and easy process but a professional individual. Thanks Ken!read more
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