Starting Investment Portfolio in Newark NJ

[Omar Ynoa]

Hey all!

I just wanted to get your opinion on a home I am trying to purchase. I'm looking to purchase a 3-family home in Newark NJ (Upper Roseville) so that I can begin my real estate journey by renting out the other 2 units and living in one. Eventually I will move out in about year so that I can have the entire home cash-flowing. What are your thoughts in the cash-flow opportunities and do you think there is potential for growth within the area?

[Anastasia G.]

Hello @Omar Ynoa

Welcome to real estate! Have you gone through pre-approval yet? 3 family in those areas can be easily as high as 700k, you would want to establish a budget. If you were to use FHA financing you would need to be careful with higher prices & higher taxes, 75% of market rents must cover proposed mortgage payment; We typically run max FHA scenarios and provide with all sorts of calculators; If you were to go with 2 Family you will have more financing options as a first time home buyer where we can potentially use 4-4.25% rate and no mortgage insurance, the difference in monthly payment can easily be $500+ which will help you with your Returns/cash flow... the bottom line structuring financing is step 1. Feel free to reach out with any questions.