Affectionately known as the Garden State, New Jersey has become a hot spot for investors that focus on . Highlights include beautiful beaches, great food, proximity to New York City, exquisite scenery and attractive resale prices for property flippers. If you’re looking for a place to make your first flip, New Jersey might just be the perfect place to get started.
Key House Flipping Stats NJ
Median Purchase Price
$184,380
Median Resale Price
$313,800
Average Revenue
$129,420
Total House Flips In 2020
1,601
Population Size
8,882,190
Median Household Income
$79,363
High School Graduation Rate
89.5%
Average Travel Time To Work
31.7 Mins
Top 5 Cities for Flipping Houses In NJ
- Orange, Essex County
- Irvington, Essex County
- Sussex, Sussex County
- Pennsville, Salem County
- Highlands, Monmouth County
Top 5 Safest Cities in New Jersey
- Parsippany-Troy Hills – Safety Score: 92.24
- Middletown – Safety Score: 91.10
- Piscataway – Safety Score: 90.59
- Jackson – Safety Score: 90.37
- Howell – Safety Score: 89.75
Top 5 Areas with Best Public Schools
- Short Hills
- Princeton
- Plainsboro
- Bernards Township
- Saddle River
Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.
What You Need To Know About Real Estate In NJ
It doesn’t matter if you’re a veteran or a first-time . You should seriously consider New Jersey for your next , as the area shows great potential for house flips. New Jersey is known for its beaches, diners on every corner and diverse local culture. The average revenue made from flips in this area is notably good for investors, while purchase prices are relatively low. This is how to in New Jersey successfully.
The New Jersey has been up for the past few months and is projected to continue this trajectory. Single-family homes are the most sought-after in this area, and the residential sector continues to perform well. The average local property is priced at $382,096 and the property is predicted to increase by over 3% over the next year.
The top-performing local markets are Orange and Irvington in Essex County, Sussex in Sussex County, Pennsville in Salem County and Highlands in Monmouth County. Monmouth County offers beach living, while other counties offer great outdoor living spaces and activities.
Simple Tips for Flipping Houses In NJ
is when an purchases a property for the sole intention of rehabbing and reselling it for a . This is a lucrative strategy – there is the potential to make a quickly, and get immediate equity if the selects the right property and stays on budget.
Fix and flip investors in this area either use their own personal funds or take a from a . Banks don’t typically fund this type of transaction due to the risk involved, and not wanting to manage a property in case of non-payment.
To complete a successful it is often best to focus on older properties and with potential that can become more valuable through home . Every should aim to keep to the 70% rule , which suggests that investors pay only 70% of a property’s after-repair-value (ARV), minus the . By following this rule, you can ensure that your gross covers the and costs, while still leaving a healthy net that you can pocket at the end of the .
The final ARV amount dictates a property’s final value after the has been completed. Other factors that influence the value of a property will include the size, where it is located and the prices of other similar homes in the area. If you want to know more, this guide further explains how to calculate ARV.
lenders like New Silver offer interest rates and terms that cater specifically to these types of projects. As an accredited , we have loans specifically designed for .
How To Find Houses To Flip In New Jersey
As a interested in how to in NJ, you are assured of a demand for local properties. Affordable is in high demand with a demographic of buyers that is largely made up of millennials. As a result of this demographic, starter homes and secondary single-family properties are sought-after.
The old adage goes, the three most important things in are location, location, and location. To find a good fix and flip property , you should carefully research the performance of local areas you are interested in. You will want to determine what the average prices are, how much the rehab will cost you and why it would be attractive to potential buyers. You’ll also want to avoid properties that have bigger structural issues or need major repairs, as these can be costly to repair.
1. Use FlipScout By New Silver
FlipScout is a free tool that helps you find most profitable real estate investments using data and intelligence. Find a property to flip or rent out anywhere in the country.
- Free to use
- Works for flips and rentals
- Get alerts to your inbox
- Calculates rehab costs automatically
- See ROI and rental income instantly
- Aggregate results from various sources
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in NJ.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue if you are a trying to find properties to flip. The MLS is literally a database created by agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the originator is to recoup any potential losses. This is good news for flippers because properties in foreclosure often sell for less than their value. If you are able to locate foreclosure opportunities in New Jersey, there’s a good chance you will be able to purchase a property for less than its value. This is why foreclosure can serve as a great platform for a potential flip.
Final Thoughts
Armed with the most recent -related data, fix and flip investors in New Jersey can better maximize their returns. is a profitable method of wealth-building for investors, and the New Jersey assures them of good returns if they choose a property wisely. The local is projected to continue on an upward trend, and investors can capitalize on this opportunity with from New Silver by applying and getting approval online in under 10 minutes.
Apply For An Investment Property Loan
If you’re ready to start your journey, New Silver Lending can provide the capital you need to fund your first flip. Unlike , we offer ultra fast loans with competitive interest rates and quick closing times, even if your is low. The entire application can be completed in less than 10 minutes.
Ready To Get Started?
Use Our Loan Calculator To Figure Out The Costs
Our Calculator factors in every major expense in the process. It can help you assess all the upfront costs, expected interest rates and repayments.
Apply for Fix & Flip Funding with New Silver
We offer instant proof of funds letters and can help you close the much faster than a traditional bank. Our interests rates are competitive, and our application speed is unrivaled.
Bonus Tip
If you’re new to the house flipping business, you will be pleasantly surprised to learn that most of the expenses incurred when renovating the property are tax -deductible. This can have a major impact on the net profit margin that you can expect to make when the property is resold. You can find a full list of tax deductible expenses here.
In addition, it is often simplest to fund the project with a private lender like New Silver, primarily because your loan application is far more likely to be approved, and it is legitimately possible to access the funds within a week of applying for a private loan.