Northern Jersey - Beginner Investor

[Chris Cozzens]

Hey All,

I am starting out as an investor up here in northern new jersey.  I am looking to invest in a 2-3 family home and occupy one of the units.  My father will also be cosigning as well.  My budget is right around 350k is the maximum I could afford I have been looking around for a few months trying to spot a good deal.  I actually offered on one which I thought was a good deal but after the inspection it turned out to be way too much for me to fix for my first deal.

Many of the multifamily houses I am finding are going around 350-450k.  I am familiar with the 1% rent rule which would imply that I should be looking to get around 3500-4500/ month for a house in this price range.  A lot of the rents are well below that range in the areas I am looking.

I am wondering if anyone else is investing in multifamilies here in northern NJ and can share some of their experiences with purchase price and rent rates etc.  

Thanks in advance! 

[Simcha Davidman]

@Chris Cozzens Welcome and good luck!

I would point out that you're probably not going to get to 1% because you're occupying one of the units.  You'd have to account for what a fair rent would be for your unit, or try for a proportionate percentage (e.g. if you occupy one of three equal units, I think the 1% rule would be "modified" down to .67% to reflect your own living space.