Financing a MultiFamily in New Jersey

[Mariel Pagan]

Motivated newbie here- looking for advice. In the past two weeks I went Pro, attended the Newbie Webinar and the 90Day Challenge Webinar. I am motivated and serious about moving forward. 

My first investment was a house hack without me knowing what a house hack was. I bought a condo lived in it and when I got married, we bought a house and started to rent out the condo. The condo and fees are being paid through the rent with some cash flow coming in, which has allowed us to save about $15,000. I have excellent credit and so I believe we are ready to move forward. 

We want to invest in a multi-family property in New Jersey. We would likely not live in the property we purchase, so we wouldn’t be doing another house hack.  Jersey is not a market with many options under $100K, so our savings are not enough for a 20% down payment for a conventional loan. And I am hesitant to do a major rehab for our first deal. Instead, we are looking at properties that may need some cosmetic upgrades, but nothing major. I am trying to determine the best way to finance a deal. Based on the market, and my hesitation to start with a rehab,  I think portfolio lenders or a private lenders might be the best option.... but I am open to the wisdom of this community. 

Thanks in advance for chiming in!