Newcomer to the NJ real estate market

[Alex Kenny]

Hi BP members,

I am a 22 year old college graduate looking to buy my first home/condominium in New Jersey (why rent from someone when you have the option to buy). My current job pays $90k and I’ve got a little over $20k saved up. 

My goal is to buy a property which I can live in and fix up (owner occupied loan), whilst saving up for another property/duplex in the nearby area which will go under renovation and eventually be rented out.

I ask you for advice on my game plan and on the location where I could make this all possible. I am single and would be fine with settling in any city from Atlantic City up to Jersey city. What markets in NJ are expected to increase over the next 5-10 years? Do you see Atlantic City experiencing any sort of boom in the near future?

I’d appreciate any feedback and look forward to getting my journey started!

- Cheers

Alex Kenny

[Kevin Blanchard]

Alex,

I would agree with Keven, perhaps a small multifamily would be better. You can even do a two-family. The reason I say that is you can fix one unit while renting the other unit. Hopefully the 2nd unit will be enough to cover most if not all of the mortgage/taxes/insurance.

If you buy a SFH and live it and fix it up you are still paying 100% of the mortgage/taxes/insurance. This may hinder the speed at which you can purchase more properties.