Experienced MultiFamily House Hacker in New Jersey ( VA homeloan)

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Experienced MultiFamily House Hacker in New Jersey ( VA homeloan)

Kimarley Gayle
New to Real Estate · North Bergen, NJ · Member since 2021 · 3 posts · 5 votes

I am a beginner real estate investor who is interested in using my Veteran Home Loan to purchase/invest in a multi-family home (2-4 units). I have done extensive research over the past few years, and I am ready to begin this journey. I am renting in Hackensack, New Jersey but would like to broaden my search to Union City, North Bergen, Cliffside Park, and all surrounding areas. I commute to Clifton, NJ for work and because of traffic conditions, I would essentially like to keep my commute time within one hour. My budget is $600-700k and with my VA Home Loan still at its maximum capacity (never used), I have been researching pros and cons and comparing FHA loans, conventional loans, and potential lenders. I would love to connect and consult with anyone who has experience using their VA Home loan for a multifamily home purchase.

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Natalie Schanne
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
4y

@Kimarley Gayle - Hello! I'm working with several vets who are using their VA loan to get financing for their homes. The trickiest part will be finding you a good deal. If you can get into a 3-4 unit, it will be a great investment opportunity (subject to the numbers). Remember a lot of multifamilies in New Jersey are quite old properties so if you're renting any kind of luxury apartment, it will be a shell shock until you renovate it.

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  • Aneury Evangelista
    Investor · New York City, NY · Member since 2017 · 27 posts · 15 votes
    4y

    Hi Kimarley - I’m an investor from Teaneck, and have experience with both fha and va loans. Happy to lend a hand with any questions you may have!

    1Reply
  • Kimarley Gayle
    OP
    New to Real Estate · North Bergen, NJ · Member since 2021 · 3 posts · 5 votes
    4y

    Thank you for responding, would love to connect with you and discuss more. 

    0Reply
  • Natalie Schanne
    Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    4y

    @Kimarley Gayle - Hello! I'm working with several vets who are using their VA loan to get financing for their homes. The trickiest part will be finding you a good deal. If you can get into a 3-4 unit, it will be a great investment opportunity (subject to the numbers). Remember a lot of multifamilies in New Jersey are quite old properties so if you're renting any kind of luxury apartment, it will be a shell shock until you renovate it.

    1Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
    4y

    Unless you have a decent amount to put down, save your time and use the VA (you earned it). Instead, focus your time and effort on finding the ideal property.

    1Reply
  • Justin WindhamPro Member
    Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
    4y

    @Kimarley Gayle

    Welcome to Bigger Pockets!

    You’ll find plenty of friendly, knowledgeable people willing to respond to your posts.

    I really like the alerts feature that can quickly guide you to current topics that might interest you: http://www.biggerpockets.com/alerts

    If you are looking to connect with other members near you, or want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could start your search here: https://www.biggerpockets.com/search/users

    1Reply
  • Kimarley Gayle
    OP
    New to Real Estate · North Bergen, NJ · Member since 2021 · 3 posts · 5 votes
    4y

    Thank you all for the information and the resources posted above as well as those who have messaged me. I have my work cut out and I will be reaching out momentarily, thanks !

    1Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    4y

    Hi @Kimarley Gayle VA loans work. Type of lending for house hacks in north jersey is huge but what's more important is finding the right house hack. Since I started house hacking I have been in well over 500 multifamily homes, there are plenty of homes to buy (even in this low inventory market) but not all make sense.

    973-975-3895
    House Hacking New Jersey563 Reviews
    WebsiteView Page
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  • Michael StrobelPro Member
    Investor · Lynchburg, VA · Member since 2015 · 41 posts · 20 votes
    4y

    Hi @Kimarley Gayle - 

    Great on you for getting started in real estate. So Ive actually used my VA to get started and full transparency....best thing I ever did. Was actually able to get paid to move in (prorated rents) since I negotiated the seller to help with my closing costs. I bought a small duplex 5 years ago. Lived in it for a couple years before finding a 4 plex property (using my VA loan again) and house hacking there until I got married.

    Some pros and cons of the VA loan from my opinion.

    Pros: 0% down payment; you begin to learn how to be a landlord; you are an investor!

    Cons: The equity you have in the home is minimal since you put nothing down. If you are planning to stay for a while, this isnt a big deal but before the housing market got real hot, it felt like I didnt have a lot of equity in my property for a while (Even after 5 years, I was only able to get ~$60k in equity when I sold my first duplex); some red tape (some sellers realize that VA loan inspection requirements are more stringent so they could avoid your offer)

    Househacking will eventually allow you to move out of the unit and rent that unit gaining you maximum cashflow. 

    The biggest lesson Ill share with you that took me a little too long to learn is from day 1, find the best way to maximize your income (make sure your rents are markets rents, can you charge for other sources like laundry/parking etc) and make sure you look at every operational expense (insurance/taxes/trash/water/electric etc) and ensure you are getting the best deal you can as early as possible (example, my insurance almost doubled on my properties and for a while I was just like, oh that stinks. DUMB, should have shopped for other insurance right away instead of waste 6+ months paying more than I should have. Not saying to be a cheap *** for your tenants but find ways to efficiently raise your income as best you can and lower your expenses. Thats the sweet spot. 

    Feel free to hit me up if you have any questions about the VA loan.

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