Located in the Mid-Atlantic region of the Northeastern United States, New Jersey is the 11th most populous state in the country, despite being ranked 47th in terms of size. It is the most densely populated of all states, with its biggest city being Newark. The state capital is Trenton. New Jersey is the second-wealthiest US state by median household income. New Jersey’s public school system consistently ranks at or among the top of all fifty US states.
Quick Stats
Population: 8.9 million people
Median Household Income: $80,000
Population Density: 1,217 people/square mile
Median Home Sales Price (North Jersey): $419,100
Median Home Sale Price (South Jersey): $238,900
Median Price to Rent: $1,975/month
On average, home values have gone up about 2.2% over the past year.
Case Study #1: Flemington Home Fix-to-Flip Project
Before
After
Client: Jennifer P. & Louis A. – RFG Pro
Property Location: Flemington, NJ
Property Description: Single Family Home
Purchase Price of the Property: $140,299
Cost to Rehab Property: $110,224
Amount of the Loan: $250,523
Original Appraisal Value of Property: $180,000
Appraisal Value of Property After Rehab: $390,000
Sale Price: $395,000
Net Profit: $75,000
Jennifer and Lou chose a very unique property for their fix-to-flip project. They found a small home on 4 acres of land that a bank was holding in foreclosure. The property was surrounded by gorgeous larger properties and fully-equipped horse farms. That meant their project was ideally suited for adding value. The 4 acres included land with pastures, woods, a creek, a small horse barn, and a smaller house that could be improved to more closely match the value of the properties around it. They added significant value by finishing the basement in the main house, and rehabbing the barn. The septic system ended up needing $15k more work than first anticipated, but their conservative budgeting meant this extra expense didn’t sink the project entirely. They found a buyer who paid their full asking price after only 3 days being listed. Great work!
Case Study #2: Cranford Home Fix-to-Flip Project
Client: Ernesto O. & Anna K. – RFG Pro
Property Location: Cranford, NJ
Property Description: Single Family Home
Purchase Price of the Property: $390,000
Cost to Rehab Property: $131,670
Amount of the Loan: $435,500
Original Appraisal Value of Property: $405,000
Appraisal Value of Property After Rehab: $670,000
Sale Price: $700,000
Net Profit: $100,000
Ernie and Anna have successfully flipped 6 properties in NJ. They have kept their day jobs, and have relied heavily on a strong team of contractors, realtors, and brokers. “The more trustworthy people you have on your side, the more likely you are to be successful!” said Anna. Ernie and Anna say the biggest holdup on their projects is the permitting process. In NJ, this can take several weeks or months. It’s a good thing that your business is running efficiently if you can get work done faster than you can get the permits! As they gain more experience as real estate investors, their tentative plan is to transition to be full-time flippers within 5 years. Good luck, guys!