Multi family homes for sale in Bergen County NJ are always very popular. Serious investors, first time home buyers and just folks who want to begin a real estate portfolio all find multi family properties attractive. While 1-4 family homes are residential over 4 units becomes commercial real estate. Because I specialize in residential real estate, I’ll leave commercial to experts in that field. I do know a great commercial agent so contact me for this if your interest is commercial.
The Multi Family Home Market Today
There are 208 multi family homes for sale in the New Jersey MLS right now. They range in price from $145,000 up to $1,799,889. Most are 2 families – 192 to be exact. Since they are so popular, the ratio of for sale to under contract is always very strong. Today it’s 192 for sale/134 under contract for a 1.6 to 1 ratio.
Low inventory + strong demand = higher prices. It doesn’t look like this will change any time soon. More first time buyers are purchasing these properties simply because it makes good economic sense. I’ve always encouraged this with the goal to keep them as long term investments. I wrote a blog article on buying a 2 family home a few years ago about this.
For those of you who took my advice back then, your investment would have grown by a whopping 16% according to the New Jersey MLS (comparing all 1-4 family sales in 2016 against 2018). If you’re thinking about a multi family purchase, you really should read my article on buying a 2 family home.
What Buying A Multi Family Means to You
Investors look at multi family homes strictly for cash flow. They analyze expenses vs income to calculate the cap rate. They have a set goal because this is strictly a business investment. Some will consider doing major work as long as “the numbers work” .
Owner occupiers see things differently. Because they want a home and an investment, multi family homes are the answer. They use these properties to build equity quicker than with a single family purchase. They also see them as protection against future bumps in the road because at least some of the mortgage is covered every month.
Multi family homes for sale in Bergen County NJ are and will always be very popular. If you want to kick some ideas around or explore a purchase, call me at 201-741-8490.