First Time Investing - Start local in NJ or out of state?

[Kelvin Funes]

Hello all, 

This is my first post since beginning to listen to Bigger Pockets about 2 months ago. I've gained a lot of interest and I'm hoping I can make the right moves to help my little family consisting of my girlfriend and 2 year old son. 

Our apartment lease is up in February 2019. I've been looking for a 2 family house in NJ to house hack but the market is very expensive in North East NJ (taxes range from 8-12K). 

We have enough capital to put down 20% comfortably but can someone please recommend whether I should first invest into a 2 family in NJ since our lease is coming up OR should I first invest out of state then move into a 1 family house in 2020? 

[Kerryanne Henry]

@Kelvin Funes

Bergen county is a great area to raise a family, hard area for first time buyers for various reasons - the stock of multi families are limited....they rarely come on the market....and when they do they sell quickly often before hitting MLS. Once they hit MLS in areas like Bergen, the competition drives prices out the water... especially on a unicorn AKA multi in that county. That being said, I suggest buying a multifamily where you know the market. So if North Jersey is what you know best, start there and maybe move down state gradually. If you guys are from out of state and familiar with another state that may be a good place to start. The more familiar you are with the area you buy in, it puts you in a better position to know pricing, neighborhoods, historic trends etc. Also if possible, use an FHA (3.5%) or conventional (5%) loan where possible, so you reduce the amount of your own money in the home and have more cash reserves. Also in a good area like Bergen/Scotch Plains etc. if you buy at a good price, you will likely buy into equity and the PMI will be a brief inconvenience. Just my 2 cents.... good luck with your search!