Seeking Advice On Way-Forward in Jersey City, NJ

[Christopher Stover]

Hi Everyone,

I recently moved to JC, and I’m hoping to get some advice from those familiar with this area, to include Hoboken, etc. I really want to house-hack with a multi-family property, but I want to know if I’m wasting my time even considering it given the local market. My criteria are pretty strict in terms of location for a place I want to live:

• Walking distance to Newport or ~20 min via public transit
• Near to PATH (<= .75 mi) to be able to get into Manhattan

Everything I've seen in the forums leads me to believe any properties in areas meeting these criteria are going to be highly competitive, and I only have about $100k to put down on a purchase. Am I living in a dreamland thinking I'll be able to find something with these criteria and the amount I have for down payment that will make any financial sense? Based upon my research of the area around the Grove PATH so far, I think $1500-2000/mo is reasonable rent for a unit, which puts me at a cap of around $725k for a property (FHA PMI is killer…). The rough $725k assumes the $100k down payment and close to a $4k/mo mortgage.

Alternatively, I can go back to looking at SFR if that's a more viable solution. Worst of all, I could just rent since I may only be in the area for one to two years but it could be longer.

Thank you all in advance, and I look forward to hearing some of your thoughts.

Chris

[Ryan Goldfarb]

Hey @Christopher Stover--

You're in a tough place for this, but it's not out of the question if you're willing to be a little flexible and patient. 

FHA loan limits on 3- and 4-family properties are about $967k and $1.2MM, respectively, in this area. Even with $100k down, you'll probably be priced out of any 3- or 4-family properties that hit the market anywhere in Downtown JC. Even so, I'd be hesitant to buy one of those Downtown without putting serious consideration into the upcoming tax reval, which could cause property taxes to soar for owners in this part of the city.

However, not all hope is lost if you're willing to entertain options elsewhere in Jersey City. Opportunities will pencil out more easily in The Heights, Journal Square, or Bergen-Lafayette, and many areas can access Newport via the Hudson-Bergen Light Rail.

Another factor to consider is desirability. These areas are not Downtown JC and will offer a different feel. Many of them are experiencing significant development, but they're still far from offering the kind of dining and nightlife offered Downtown. If you're open to that kind of change, you may find what you're looking for elsewhere.

One other note: for accessing Downtown JC and Hoboken from anywhere in Jersey City, Uber & Lyft are life changing. This helps immensely with promoting interconnectedness throughout the area.

Lastly, no matter where you're looking, inventory is tight, especially among 3- and 4-family properties. There's a lot more stock of 1- and 2-family houses, so 3's and 4's are harder to come by. In addition, for the ones that do make it to the market, owner-occupants face stiff competition from the plethora of investors in the NYC area. 

Feel free to reach out if you have any other questions or are seeking an opinion on any other parts of town. Also, happy to put you in touch with my brother who's an agent nearby if you'd like to check out some properties -- either by browsing inventory online or viewing in person.

Good luck!