Any Successfull House Hackers in North New Jersey?

Question

I plan on owning my first duplex this upcoming year (2021) to househack as my first investment property and was hoping to get in touch with people who have been successful using this strategy in Northern New Jersey. I know the area has a high cost of living compared to most markets since I've lived here the majority of my life but I'm curious how others were able to do it successfully. Specifically, I'm curious...

How did you decide on a particular market?

How did you finance your deal?

Did you find a mentor before diving in? If so, how did you find one?

If anyone wants to add anything feel free. I would just really like to tap into the local resources to better prepare myself for the upcoming investment.

Cheers!

Counties: (Morris, Warren, Sussex, Passaic, Bergen, Essex, Union, Somerset, Hunterdon)

Larry S. · Answer

Hi @Robert McCormick, I'm doing exactly that. You listed basically every north Jersey county except Hudson, any reason in particular, or just an oversight? I have a duplex in Hudson County. Why did I decide on Hudson? Well I was already living in Hoboken, wanted to stay nearby and love the proximity to NYC. I financed it with a 5% down conventional loan. Unfortunately the loan I used is no longer available, but there's no reason you couldn't use a 5% (or 3.5%) down FHA loan. In the pre-COVID world, in person meetups were a great way to meet people. There was a meetup that I attended regularly and met people through it. Some were like me, looking for their first investment. Others were much farther along in their investing careers. I learned a ton from the host of the meetup and he was able to recommend many resources (agent, handyman, etc) to me. As you mentioned, the cost of living in north Jersey is high. So I wouldn't worry too much about many of the rules of thumb that you read here on BP. Though depending on your goals, you shouldn't have trouble finding a property that works for you. With the high property taxes, you'll have trouble finding a property that meets the 1% rule. You might not find a property that cash flows while you live in it. But you can definitely find a property that allows you to rent out the other unit(s) and reduce your living expenses while living there and also gain loan paydown and appreciation.

Robert McCormick · Answer

Hi @Larry S.,It was just an oversight. I would be open to investing in Hudson county, my only drawback is I figured the closer to NYC, the more expensive property values seem to be, aside from rougher neighborhoods. I'm not sure I could afford the more expensive housing there.I do like the close proximity to transit lines though. However, they go all over North Jersey so I haven't really locked down too many towns in particular. I plan on using one of the lower down payment options 3.5-5% as well but whether it's FHA or a conventional first time home buyer loan, I'm still researching that.I went to a few in person meetups prior to Covid as well and found them very useful, but then things shut down right as I was starting to get comfortable in them. (of course) Do you know of any/have any recommendations for virtual meetups in North NJ currently running?Yeah, I've noticed after analyzing a bunch of deals over the past couple of months that the rules of thumb didn't seem to be too realistic around this area. It's comforting to know after hearing from you that lack of cashflow while living in the house is normal for the area. That definitely puts my mind at ease so far. Thanks for sharing, it's helpful to hear of people who have successfully used this strategy in this area.

Robert McCormick · Answer

Hi @Mark F.,I'll have to checkout his meetups. It's good to know you were able to start without a mentor right off the bat, I thought it was almost one of those unwritten rules that you almost "have" to have one before diving in. You're also not the first person to tell me to be patient and not jump in right away, so I can definitely sense a lot of truth in that. Thanks for sharing and I plan on continuing to be a sponge, soaking up knowledge.Thanks!

Sebastian Kowalik · Answer

Hi @Robert McCormick, I’m a North Jersey Realtor. Give me a call if you have any questions.

Mark F. · Answer

I'm a house hacker in Bergen. I recommend Jonathan Greenes zoom meet ups. To answer your questions.... I picked Bergen due to its suburban feel, lowerish taxes and nice areas yet still close to NYC. I financed it with a VA loan. I did not have a mentor before I started looking but I found one once I did and hes awesome. I found him by dumb luck/persistence. My quick advice is be very very very patient. I've known people who have taken over a year to find a multi in Northern NJ. Keep learning.