READY FOR SECOND PROPERTY! NJ or OUT OF STATE

[Alexander H.]

Hello BP Community,

I purchased my first triplex in Bergen County NJ 2.5 years ago and have successfully “house hacked” to live rent free. I wish I knew about this community when I started!

It’s time that I purchase another property, unfortunately I do not think it’s worth it continuing to invest in my area, “currently living in NJ”. From what I’ve seen it makes more financial sense to invest into properties out of state. I’ve identified Fayetteville NC as a potential investment area for 3/2 single families or duplex’s and would like to build some relationships with property managers and realtors in the area to help with the purchase of a building.

[Natalie Schanne]

@Alexander Hartwell - my vote is to stay in new jersey, within 20 mins of your other property and buy another 3-4 unit with a homeowner occupant loan to house hack. You can do this every year until you have a good portfolio with 3% 30 year fixed loans. Airbnb income in New Jersey is very strong because the incomes are high. I’d rather take a property down the street where I can tweak the revenue and expense levers than an out of state property where I need to trust that the property manager is putting in good tenants and I am not subject to getting oversized “automatically authorized” charges like replacing a $100 toilet for $500. Your mileage may vary. I believe buying larger scale (100+ units) professionally managed units is ok out of state, but below 50 units should belong to local investors imo. I think out of state investors are more likely to overpay.