Establishing Coliving Rentals in Newark yields Double Digit Returns for Potential Investors
A recent trend in rentals is Coliving OpenDoor describes Coliving as "a modern form of housing where residents share living space and a set of interests, values, and/or intentions." http://opendoor.io/so-what-exactly-is-coliving/
According to an article in The Economist "Pricey housing markets mean co-living buildings are on the rise" states "Rising rents have opened up a gap in the market. The ratio of average rents to incomes in London rose from a quarter to a third between 2004 and 2014. In New York, average rents have grown from 29% of average income in 2002 to 34% in 2014."
One shrewd developer has found a niche in the Newark Market where large multi unit family is inexpensive to purchase, and then attract professionals willing to pay $600 to $800 a month for their own space in shared living. Newark has easy access to Jersey City and lower Manhattan through the local Path train service. Here the developer has found dirt cheap property, and has offered rental a fair prices to return a double digit return for potential buyers. Examples include:
$390k 172 N 12th Street Newark, NJ 12.07 % Annual Return
3 family home $4,350 in monthly rent $1,600 on the first floor $1,600 on the second floor $1,150 on the third flloor $5,600 in annual taxes
$465k 449-451 South 13th Street, Newark NJ12.67% Return
4 family home $5850 in monthly rent $1,400 x 3 for 3 two bedroom apartments $1,650 for 1 three bedroom apartment. $9,100 in taxes and $1,400 in insurance