New Jersey-multi-family search

[Patricia Bercy]

Hello All,

My name is Patricia and I am eager to get into real estate investing.  I have been pre-approved for $100k already and have been searching for a great multifamily deal in North Newark area.  If you have any suggestions, or know any better areas in NJ with low tax, or know any great agents to help me in my search please let me know.  

[Ro Maga]

@Patricia Bercy, Here is some advice from my limited experience looking in the same area.  

1. For properties going under $100k, you are going to need a 203k renovation loan -- FHA or conventional alone won't do unless you get a turnkey condo, but that's not the plan. You obviously need to live in the property for at least a year with 203k FHA loan, or use a HomeStyle loan with 20-25% down. Be sure to find a loan officer with lots of experience on renovation loans because that will make a world of difference. On that note, shop around for better loan terms, just an additional $10k would give you more options.

2. If you are going to owner-occupy, you also want to benefit from the OO preference periods offered by HUD, Homepath, and Homesteps. This is going to be key because cash investors quickly sweep up all the good deals, and a sub-$100k multi-family in an ok area is a good deal.

3. Mind the taxes. I see some folks have suggested Irvington and the Oranges, and while I think the Oranges could be workable, Irvington is a sad story. You don't want to buy a $70k older duplex, that needs at least $30k in work, and comes with a $11,000 tax tag, only to have a limited tenant pool. 

4. If you don't intend to live in the property and have all the time and patience short sales take... as well as a realtor who's quick to file bids and won't mind waiting a bit for his/her commission, that might be another option.  Though, I hear the competition from cash buyers is steep here too. 

5. If you are a first-time home buyer, and you are not a high income earner (yet), call the city halls and/ or community development agencies of the cities that interest you and ask if they have any programs available for aspiring home owners.  You may have to take classes or agree to live in the property for x number of years, but you may get from help with your closing costs to partial forgivable loans. I believe East Orange, Newark, and Elizabeth have/had a forgivable loan and/or tax abatement programs. Check also La Casa de Don Pedro. 

6. And keep saving and pay off any debt. Every paycheck your position will get better and better. 

And 

7. Don't give up or give in to buying something that doesn't add up. 

Hope this helps