Posted by Doug O on February 02, 2007 at 15:09:49:
I am in northern NJ, and I purposely invest out of state because cap rates in NJ are so low… Good and bad, good because the rental market in NJ is incredible (there always is a shortage of housing in this state), bad because land values are so high and reduce the overall cap rates!
Something like this sets off immediate alarm bells… There are some pretty decrepid towns along the NJ shore. Call them throwbacks of yesteryear… Some look similar to Beirut, with all the bombed out shells of hotels, etc. from the heyday 50 years ago…
To purchase apartments in NJ for $33,000 / unit is very unusual (unless you’re buying in Newark/East Orange/Paterson/Camden/etc… bad areas)…
Also, this says “rooms & efficiencies” and that it can be converted to apartments or condos… That makes me wonder if it’s a boarding house or run-down motel… Something like this, just make sure you do all your due diligence…