How do I figure out what towns have multifamilies (besides driving for dollars)?

Question

Hello,

So I am buying my first property this year- a duplex, triplex or fourplex and renting out the other unit(s). I have already spoke to a lender about what I can afford but now I need an agent. Every time I try to find an agent, it forces me to put a ZIP code first. How on earth am I supposed to know which ZIP codes have multifamily homes without driving and looking everywhere? How am I supposed to choose an agent per ZIP code when I have multiple towns I am considering? I'm aiming for central New Jersey but am an hour out in PA. I have about 10 towns I am considering so I need to narrow it down and am not sure how to. How am I supposed to find an agent by ZIP code when I don't know which ones even have options?

Shawn Mcenteer · Answer

@Brooke B.  I forgot to mention next REI meet up is this Wednesday, please DM for meet up page or check out BP event page.  Lots of deals happen through this meet up, especially on the multi family front. Lots of house hackers and MFR investors

Caroline Gerardo · Answer

If you plan to use an owner occupied loan (conventional FHA VA USDA) you need to be within reasonable drive time to work, so there is that piece.

Most any city has duplex-4 units.

Here is my suggestion which may sound different than others. I assume this is your first deal.

Borrow a camper/trailer for a couple weekends when you are off. Go to the cities and stay overnight and see which ones you like. Go have whatever food item you love and see if the town actually has a great bakery if croissants are your thing. Walk around in the day and evening. Take notes.

Get preapproved for a loan amount, get it in writing.

This will narrow down your ten possible cities to two and from there find Realtor and start shopping price and your needs.

Jean Carlo Vilalta · Answer

@Brooke B. I'll echo what @Travis Hill said, open up Redfin (my preference of the bunch), type in a county in NJ close to where you're thinking (Essex or Morris county, perhaps), zoom out as much as you want, set a filter by clicking on "Home Type" > "Multifamily", and click on "Remove Outline" at the bottom of the map. This will give you a good sense of where the hubs of multifamily properties are, and you can zoom into the cities to get a better sense of the spread. I own a property in Essex county, and I'd say that is a pretty good place to start. Depending on the quality of the rental you're looking for and your budget, you may want to steer clear of Newark, but look at the outskirts.

Now, you mentioned you're in PA - why not purchase a property closer to where you live? PA has much friendlier laws for landlords than NJ does, the prices are significantly more affordable, and the taxes are much lower than in NJ. Just a thought since it's your first property, but up to you.

Also, agents will typically span a number of cities or towns within their territory. So find one close to where you're thinking and go from there. Look for agents that invest themselves and they'll be able to steer you further towards what they see as the best spots to own an investment property. I used @Shawn Mcenteer in NJ and could not recommend him more!

Cheryl Schuck · Answer

you can always call a local realtor. We do not just specialize in specific towns, we have knowledge of the county(s).

Let me know if i can help in any way. I cover Morris, Sussex, Essex, Somerset and Passaic counties. Not sure where you are looking.

Richard Phillip Lewis · Answer

Hi Brooke, I am in the middle of buying a duplex here in central / Jersey shore. I have a real estate license and would be happy to help. I have already done a number of steps you need or will need to do and have knowledge to happily share.

Please message me if you would like to work together 😎

Kevin Manafi · Answer

Hi @Brooke B.,

Congrats on starting the journey toward getting your first investment property! To find out which areas/zip codes have multi-family inventory without a real estate agent, all you can really do is search, search, search--either by driving for dollars, using Google (or ChatGPT), and using listing websites like Compass, Zillow, Redfin, etc. and filtering to multi-family.

Instead of focusing on trying to narrow down by zip code which can be pretty daunting if you're unfamiliar with the areas, I would recommend trying to narrow down by county first. That will also make it easier for you to find an agent in the area as most agents will probably cover the whole county or counties surrounding the towns you're interested in.

Alan Asriants · Answer

@Brooke B. Congrats on getting started in your journey. I am not too familiar with Jersey and how rentals work there, but I do have experience owning properties in NE phila which is very close to NJ. If you're ever looking to chat about possibly investing here, reach out anytime. I help with multiple zip codes and townships surrounding the NE Phila area. Best of luck

Brooke B. · Answer

Thank you to everyone! Will definitely do more research based on these answers.

How do I figure out what towns have multifamilies (besides driving for dollars)?

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