I'd heavily appreciate any input anyone has to offer on a dilemma my husband and I are facing. We currently live in Hudson County, NJ and are renting. We REALLY want to invest in a property right now because we have a good amount of savings that are just sitting there and doing nothing for us. As most people know, Hudson county is increasing in value due to its proximity to NYC but it's mainly condo's for sale, and might I add, not even great ones. They're decent but the best condo's cost about $400k+. Additionally, most lenders are requiring 15% down because it will not be owner occupied and is considered an investment property.

Even though the down-payment is doable, I can't justify losing so much liquidity for something that won't NEARLY appreciate the way a SF or MF home will. I know it'll be equity for us but I'd rather save the cash on hand for our own personal home when we move out. Also, the HOA fees are almost all $400 and more, minimum $350. House-hacking is an option, but MF homes in Hudson county are VERY high in price and the ones that aren't are practically burned down.

SO here's my question!

Is a condo investment worth it in a city even though the condo will not appreciate much/HOA's can kill cash flow but the amount of possible tenants/tenants applying will be high, or is it worth it to invest in the more suburban parts of NJ and buy a SF house to rent out instead just because of the appreciation and possible cash-out refinance? (MF is currently out of the question because of asking prices). Our goal is to hold this investment. A flip would be nice but the goal is to rehab it and possible cash-out refinance one day to repeat. Even if that didn't happen, it's a long-term investment. The biggest concern is finding a tenant.

Truthfully, we prefer a SF home in the suburbs but our fear is pretty obvious - we're worried we won't find a tenant willing to pay what our mortgage might be, especially because we're not in the city. I've heard from many people that you'd be surprised what some will pay for more space/a backyard and privacy, but we just can't get over the fear of not finding a tenant. And let me also mention, yes we know NJ taxes are high. But we've lived in NY our whole lives and now NJ, we've made peace with our situation and don't plan on leaving the area so please don't make us feel bad about that haha :) I know there are many other factors to consider, and it's not as black and white as I'm portraying it to be, but this is our biggest concern.

CITY CONDO OR SUBURB SINGLE FAMILY?!?

Thanks in advance everyone!!! Grateful for this community!

Jersey City, New Jersey

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