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Updated almost 6 years ago on . Most recent reply

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Mario Gonzalez
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17
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looking to house hack in Philly/ NJ investing methods works best?

Mario Gonzalez
Posted

hey everyone, with the lowest interest rate in many months now here. Would like to purchase very soon. I'm 26 with 65k for a property. I live in North Jersey which the taxes really make it hard to cash flow/breakeven buying along with the salt tax. I have the following choices I feel below.

1. move to Philly (which i will soon) and buy a 2 or 3 unit property to house hack with the hope of getting 4-6% cocr after moving out from one year living in one of the units. 

2. purchase a townhome in Philly and airbnb it 
to cover all cost + cash flow left over
3. purchase a single family house and rent out the rooms in Philly to break even.
4. purchase a 2 unit in Clifton NJ and have my family all chip in to pay the mortgage living with free from paying (a not good idea long term + family already does this in a one family house in Paterson which they don't mind ) 


what i am looking for is 

1. to house hack so i can cash flow after living there for 1 year and or break even. 

2. force appreciation with light rehab done to the units

3. in a C or better class area


I would be doing a conventional loan as i do want to do fha since rates are low now trying to see which method would yield me to cash flow / live rent free with some cash flow. i read many books and all say you profit when you buy so i want to buy right. i can buy up to 420k and currently no debt.  I should mention out of 60k-65k i would like to max put down 40k so ill have some funds for light rehab. i have been preapproved in both NJ and PA, been looking hard in Philly but have not found anything so far that cash flows after 1 yr. 

what method makes the most sense? and is what im looking for asking too much now in this market?

thanks for your help

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