Newbie looking for 2-family to house hack in Jersey City, NJ

[Kit Williams]

Hi Everyone,

I decided to join the BP family as a pro after the newbie webinar. I've got to say that I am very excited not just because of the financial possibilities REI can bring me but that I am learning a new knowledge with so much resources readily found here in BP.

I am looking to get my first 2 family to rehab and house hack in Jersey City or Brooklyn and rent the other unit out. My budget is 500,000 sales price; 10-15% down payment. I can get private money for the rehab cost but I need to find a good deal first. So I have been doing some research focusing in Jersey City and spent hours looking at properties. I tried using the rental calculator in BP to analyze the deals. However, they all turned out to be very bad deals. I guess it's because the properties are very expensive to start with, and the rent of one apartment is not enough to break even.

So I started to look at distressed properties on zillow/realtor. I gathered that distressed properties are those listed as fore-closure or by auction. I am just wondering if it is wise to even consider fore-closure/auction when I just starting out? I understand there are a lot of legal procedures involved. But it seems that only these deals are cheap enough for me to rehab it and rent with my budget. Or should I simply just look out-of-state?

I have tons of questions in my head and I am reading so much to find answers. I think it is just easier to post here and really be part of the community. Welcome all opinions.