I want to purchase a 2 to 3 family home to house hack in NJ

[Account Closed]

Hey all, i have around 40k to purchase a duplex or triplex home in North jersey to house hack, my goal ( let me know if it is possible) to add rooms to the property and rent out floors/rooms. Goal is to make 850/1200 per month and live rent free. Also, to rent out the basement ( well be included ) here is my question

1. what towns do you recommend that are good areas to live in ? i am currently living in paterson nj is a okay area, (theres alot of investors from NY around me buying up places)

2. how can i use the B.R.R.R method base off price? example i see properties costing from 250k to 350k i dont know where i can find the comps for the area to know if the property is under or over price. i want to use the FHA loan put down 3.5% than use 203k loan to rehab the property

3. someone told me that the 203k loan makes everything more costly is that true?

4. i dont want to use all of the 40k its my limit, i want to buy two properties this year i know for a fact 1 will be in paterson cause the cash flow is crazy. 

do you think 850/1200 a month by renting out rooms under the table or by floors is possible?

[Arthur Soto]

@Account Closed Yes, I have a 3 unit house in Wallington and currently pending a contract for a 4 unit in Garfield. Is there a plentiful supply, no. But if you're on the lookout and you have a real estate broker working with you, you will find them.