When buying an investment property, there are three things which we must attend to before entering any deals: location, profitability and affordability. The perfect mix of these details can boost an investment volumes.
For location the minimum valuation criteria should be: school districts, land/lot positioning, water views, city access, shopping availability, & access to interstates. Location cannot be changed and can drastically alter the value of the home. Profitability is the total sum you stand to gain after all of the fixed and variable costs have been subtracted. The goal is obviously to maximize profitability through high returns and high rental rates. Affordability is minimizing cost to be able to acquire as much capital as possible.
If you’re looking for the best combination of these factors you should consider investing in the New Jersey real estate market! No matter where you live you are 2 hours from a city and a beach. We have an amazing public school systems. Not to mention, lower cost of living than many of our neighboring states. Here our list of the best locations and their stats. Enjoy!
Alloway
Median Property Price: $234,086
Price Per Square Foot: $127.67
Traditional
Rental Income: $2,534
Cap Rate / Cash on Cash Return: 6.82%
Atlantic City
Median Property Price: $252,210
Price Per Square Foot: $172.19
Traditional
Rental Income: $1,171
Cap Rate / Cash on Cash Return: 1.4%
Rental Income: $2,623
Cap Rate / Cash on Cash Return: 5.27%
Occupancy Rate: 41%
Camden
Median Property Price: $102,844
Price Per Square Foot: $79.66
Traditional
Rental Income: $1,299
Cap Rate / Cash on Cash Return: 5.99%
Elizabeth
Median Property Price: $221,131
Price Per Square Foot: $104.57
Traditional
Rental Income: $1,678
Cap Rate / Cash on Cash Return: 1.79%
Rental Income: $2,430
Cap Rate / Cash on Cash Return: 4.16%
Occupancy Rate: 66%
Jersey City
Median Property Price: $591,460
Price Per Square Foot: $623.33
Traditional
Rental Income: $2,267
Cap Rate / Cash on Cash Return: 1.18%
Stafford Township
Median Property Price: $278,655
Price Per Square Foot: $144.71
Traditional
Rental Income: $1,959
Cap Rate / Cash on Cash Return: 2.26%
Rental Income: $3,264
Cap Rate / Cash on Cash Return: 6.07%
Occupancy Rate: 42%
Sussex
Median Property Price: $296,801
Price Per Square Foot: $99.74
Traditional
Rental Income: $1,547
Cap Rate / Cash on Cash Return: 1.9%
Rental Income: $1,988
Cap Rate / Cash on Cash Return: 4.36%
Occupancy Rate: 45%
Trenton
Median Property Price: $146,560
Price Per Square Foot: $110.92
Traditional
Rental Income: $1,513
Cap Rate / Cash on Cash Return: 4.14%
Union City
Median Property Price: $534,652
Price Per Square Foot: $405.87
Traditional
Rental Income: $2,199
Cap Rate / Cash on Cash Return: 1.47%
Rental Income: $2,984
Cap Rate / Cash on Cash Return: 2.97%
Occupancy Rate: 73%
