Buy a house to rehab or buy a new construction in today's market?

[Lin Ding]

Hi All superstars on BP forum,

I'm thinking if I should buy an older house to renovate or buy a new construction in today's market? I'm in an expensive market (Jersey City, NJ across the river from Manhattan). There have been a lot of development here. I plan on house hacking but in this already expensive market and under this high interest rate environment, it's so hard to find a property in a good location that can cash flow. I looked at a few new builds to try to get a good deal in this market as price has lowered for some. I also found an older house that was last updated in 2014 but is no where near a newly designed/built new construction. If I buy it, I plan to renovate it and reconfigure the floor plan and add a parking garage to it.

However, I've never renovated a house myself or even hired someone to renovate a house before. I don't know where to start. What would be your advise for me in this market? Should I pay a premium to get a new construction house to house hack or try to figure out my first fixer-upper house hack? Does anyone have experience renovating a house in JC? How long does it usually take for say permitting, vetting & hiring GC, the renovation process, garage addition, etc. I guess I'll use FHA 203k for mortgage+reno financing.

I'd love to hear some advice for this dilemma. Thank you so much! Hope you all have a great holiday and do well in the midst of this economy right now.

Best,

Lin