Real Estate investors looking for cash flow and appreciation are headed to New Jersey to build rental portfolios. The Garden State is a current favorite of real estate investors due to many factors including a strong and stable economy, a growing and highly education population with a healthy demand for housing! Easy Street Capital is proud to be a leading provider of investment property loans for real estate investors looking to build rental portfolios in New Jersey!
Types of Investment Properties in New Jersey
When it comes to real estate investing in New Jersey, there are a variety of markets and types of investment property loans to choose from. New Jersey has plenty of older properties in need of renovators to restore them to rent-ready status. For investors adept at rehabbing older properties, hard money renovation loans are a perfect choice! These investment property loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a quick return or pursue the BRRRR Strategy byrenting it out and then refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are already rent-ready and require no renovations. Move-in ready single family homes and multi-unit properties (such as duplexes or triplexes) are great for cash flow and price appreciation. Most DSCR Loans are fixed rate for thirty years, locking you into a fixed interest rate for the long-term. While, if historical patterns continue, rents and appreciation increase steadily each year. Bottom line, debt costs stay the same while cash flow increases!
New Jersey: Landlord-Friendly State
In terms of regulation, New Jersey is considered a landlord-friendly state. Owners of rental properties, such as typical DSCR Loan borrowers, are secure investing in the state. Unlike some other states, New Jersey does not have any form of rent control. This means rental property owners are free to set rents at whatever level the market will bear, giving them the flexibility to maximize rents and cash flow.
In addition, if a tenant fails to pay rent or violates the terms of their lease, New Jersey rental property owners can begin the eviction process relatively quickly. For example, landlords can serve a tenant with a “5-day notice to quit” if they fail to pay rent. After just five days, the landlord can file a complaint for eviction in court. This provides landlords with a legal recourse to promptly address tenant issues, ensuring they can maintain the profitability of their investment.
Overall, New Jersey is a landlord-friendly state that offers many advantages for investors interested in rental properties. With its favorable rental market conditions, landlords can enjoy the freedom to set rents at market rates and take necessary actions to protect their investment.
Where To Invest In Real Estate In New Jersey
New Jersey is a favorite market for real estate investors because despite its small size, it has many options. There are varying markets that offer great potential for each type of real estate investor. Newark is the state’s largest city and is historically notable, one of the first cities in the United States! Jersey City is the second most populous city and an important city for waterfront transportation. New Brunswick is home to Rutgers, as well as being a commuter city to New York City. Hoboken is a fast-growing market in Hudson County and is a major hub for transportation into the city. Finally, Cape May, known as the “Queen of Seaside Resorts,” due to its stunning costal beauty, is the perfect place for a weekend getaway.
Newark
Newark is an active city with a population of over 305,344 residents, making it the largest cities in the state. The city has a diverse economy with industries such as healthcare, education, and finance playing significant roles. Newark is home to several major corporations, including Prudential Financial and Panasonic. These companies provide a strong employment base, attracting a wide range of professionals and students in need of rental properties. Additionally, Newark boasts a thriving healthcare sector with top-notch medical facilities, further contributing to the city’s appeal for both residents and investors.
Newark’s robust economy and increasing population make it a compelling market for real estate investors. The city’s thriving job market and population growth generate consistent demand for rental properties.
According to Redfin, the median sales price in Newark in February 2024 was $460,500. This represents an increase of 12.3% year-over-year (showing solid appreciation). In addition, according to the Zillow Observed Rent Index, the median rent in Newark is $2,100 per month as of April 2024. These two metrics, in combination, show a great price-to-rent ratio in this market. This means real estate investors in Newark can likely secure high rents for lower property prices than other similar markets!
Newark presents a promising market for real estate investors seeking opportunities in both single-family and multifamily properties. The city’s thriving economy and diverse range of attractions make it an attractive investment destination. Situated near major metropolitan areas like New York City, Newark offers convenient access to a broader market. With its competitive cost of living and a strong demand for rental properties, Newark holds the potential for lucrative cash flow and favorable returns for savvy investors.
Jersey City
Jersey City is a rapidly growing city located in the northeastern part of the state. The city’s economy is diverse, with thriving sectors in industries such as finance, technology, and healthcare. Jersey City is a major hub for financial services, hosting numerous banking and investment firms. According to the US Census Bureau, Jersey City has a population of 286,000 people and has grown recently.
Jersey City’s prime location near major cities like New York City and Philadelphia positions it as a sought-after destination for short-term rentals, catering to tourists and business travelers. The city’s diverse attraction and convenient access to transportation make it an ideal choice for investors seeking profitable opportunities in the real estate market.
Jersey City is a vibrant city that offers a wide array of events and festivals throughout the year. From the Jersey City Art & Studio Tour to the Groove on Grove summer concert series, there is always something exciting happening. These events draw in many visitors, creating a consistent demand for short-term rental properties. With its diverse attractions, including the Jersey City Museum and the vibrant dining scene in neighborhoods like Downtown and the Historic Downtown, Jersey City presents a lucrative market for real estate investors. The city’s growing population and proximity to Manhattan further contribute to its appeal as a prime investment opportunity.
Overall, Jersey City’s robust economy, diverse attractions, and growing population make it an excellent market for real estate investors interested in both long-term and short-term rental properties.
New Brunswick
New Brunswick is located near the Raritan River and has a population of 56,000 people. The city is a regional commercial hub for central New Jersey. According to Redfin, median sales price for a single-family home in February 2024 of $360,000. This represents a strong 22.6% year-over-year growth! With a population with strong incomes and reasonable housing, New Brunswick is an attractive market for long-term rental properties.
Real estate investors with a focus on niche strategies, such as student housing or short-term rentals, will discover New Brunswick to be a lucrative market. Rutgers University, a prestigious institution, attracts a sizable student population, creating consistent demand for student housing. Investors who choose properties near campus and cater to reliable students can enjoy attractive returns on their investments. Moreover, New Brunswick’s proximity to major cities like Philadelphia and New York City makes it an appealing location for short-term rentals, attracting visitors seeking to explore the vibrant surrounding areas.
In addition to long-term rental properties, New Brunswick is a thriving market for short-term rental investors. The city is home to renowned cultural attractions, such as the Zimmerli Art Museum and the State Theatre New Jersey. These attractions attract a substantial number of visitors year-round, making New Brunswick an appealing location for investors in short-term rentals. Additionally, the city hosts several events and festivals, including the Hub City Sounds series and the Rutgers Day celebration. These events create a consistent demand for short-term rental properties, providing investors with lucrative opportunities.
Overall, New Brunswick’s economy and student population make it an attractive market for real estate investors looking to invest in all types of rental properties.
Hoboken
Hoboken is a vibrant and welcoming city located in Hudson County. This bustling city of around 57,700 residents offers an ideal mix of urban vibrancy and suburban peace. Residents can explore the nearby parks and waterways for outdoor recreation or take advantage of excellent shopping centers and attractions. The city also boasts excellent schools, health care options and services, making it a great place to call home. With something for everyone to enjoy, Hoboken is the perfect place to relax and explore. The city’s proximity to Manhattan attracts a steady renter base, including young professionals and commuters, ensuring a consistent demand for rental properties.
The Hoboken Volunteer Ambulance Corps 5K Run is an annual event that supports local charities. Participants of all fitness levels come together to run and raise funds for a good cause. The event draws a large number of participants who are passionate about promoting health and giving back to the community. In previous years, the Hoboken Volunteer Ambulance Corps 5K Run has had great success, raising significant funds to support their charitable endeavors.
Hoboken’s proximity to New York City and its vibrant urban atmosphere make it a highly sought-after destination for commuters and city dwellers. With convenient access to Manhattan and other major cities, Hoboken offers an ideal location for those seeking a shorter commute. The city’s ongoing growth and development, coupled with its lively dining and entertainment scene, make Hoboken a prime investment opportunity for real estate investors.
Overall, Hoboken’s diverse attractions and well-placed location make it an attractive market for real estate investors. With its growing population and promising future, 2024 could be a great time to invest in Hoboken real estate.
Cape May
Cape May is a picturesque beach town in New Jersey renowned for its pristine sandy beaches, historic charm, and Victorian architecture. Its vibrant downtown area offers a variety of shops, eateries, and cultural attractions, including the Cape May Museum and the Cape May Lighthouse. Cape May attracts visitors from neighboring cities such as Philadelphia and New York, making it a sought-after destination for short-term rental investors. With its coastal setting and rich history, Cape May presents an enticing opportunity for investors in the vacation rental market.
According to AirDNA, Cape May is a market with potential and pitfalls for investment properties. Cape May, a charming beach town, has earned high marks for its investability. With an impressive 93/100 for investability, Cape May presents a profitable opportunity for real estate investors. These scores indicate a consistent and robust demand for rental properties, as well as the potential for high returns on investment. Cape May also has an average daily rate of $522.90! Investors who use DSCR loans from a forward-thinking lender like Easy Street Capital, which qualifies the income of the property using AirDNA projections, can likely solid returns.
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Ready to invest in real estate in New Jersey? Easy Street Capital is New Jersey’s best provider of rental loans for both hard money rehabs and long-term rental properties.
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