House Hacking in New Jersey

[Michael Basile]

Hello,

I am trying to start my Real Estate investing career by House Hacking in New Jersey. I would love to get feedback from new investors who have started with this strategy and/or investor agents on what advice you would give to someone, especially in this current market?

I am currently renting in the Monmouth County area and would like to stay somewhere close to here, but for a better opportunity I would be willing to go more North.

Any advice or suggestions would be greatly appreciated.

Thank you.

[Steve Schulman]

Hi @Michael Basile - Congrats on taking the first steps! There's no better way to jump start your REI career than via house-hacking -- unless you house-hack via FHA 203k.

My advice: Find an older property (which Monmouth County and I know Hudson and Essex County have an abundance of) that needs some work, preferably in need of all new Plumbing, Electrical, HVAC system etc., the more work the better (just make sure you account for increase in prices and demand for lumber and materials). Then purchase it with a 203k loan and borrow add'l $$ for the rehab. 

That's what I did... Not only did I find it easier to land a deal in a hot market [these big players and cash investors tend to stay away from these 100 y/o pre war built homes-- which on top of cosmetic upgrades, need new mechanicals-- and they want quick returns, money in, money out] but I gained valuable, hands-on experience w/ the full-gut renovation and forced some decent equity in the process. All with 3.5% down and the banks money for the rehab... You can't beat it. Any questions or if you just want to pick my brain, don't hesitate to reach out. I'd be more than happy to jump on a quick phone call and chat further.