First time investor

[Peter Giokas]

I’m planning to buy my first investment property in New Jersey. I’m not sure how big to start. Should I go for a two unit property? Or save a little longer for a 4-8 unit property? How much should I have on the side after purchasing?

[John Mocker]

Peter,
From an insurance perspective, most Insurance companies classify the 1-4 families as Personal Insurance. The 4+ units would be Commercial. That is important because, ideally, you want an agent who can handle both. You probably should look to an independent agent as they have access to multiple companies. It has been my experience that one company could be good in one town or one construction and not be good in a neighboring town.

The NJ market is impacted by the location of the property. The closer to the water the more reluctant the companies are. That is because of wind losses not Flood. Depending on the areas you are looking, having less choices usually translates in to higher premiums.

Good Luck with the search