1st timer looking to invest in NJ

[Kavita B.]

Hi, i am very new to real estate deals. We got our first house in west orange NJ in 2007 when prices had not hit rock bottom yet. We lost a lot of equity in that house. However when we moved out of that house in 2014 we rented it and we are getting around $300 per month gains.

I am now living in millburn and am looking to hopefully try and get to a point where i have a decent income coming from my investments. 

I have been looking at BP for some time, and learning the concept of BRRR and Wholesaling etc.

The question i have is, which areas of NJ (preferably North NJ ) are places i should look into where i can rent out a unit easily (lot of rental demand). I prefer areas that are an A or a B area not the C/D areas which would be potential war zones.  

I would be able to invest around 40K (60K stretched) and get a loan for the remaining amount.

I am not handy nor do i know a good reliable contractor, so i think i should stay away from rehabs.

I have been looking at homepath inventory, but struggling with areas to buy in.

do i sound completely hopeless? Would you Pros recommend a different strategy of using my money (other then buying a house and renting it)?

[Darren Sager]

@Kavita B. welcome to BiggerPockets! 2007 was peak of the market last go around so chances are your West Orange home may finally be back to those levels.   I think you'd have a very hard time getting into a A or B area of Northern NJ with only having possibly $60K to be able to invest.  Most of the B towns which have higher demand for rentals and housing (such as South Orange or Maplewood) don't have much (if anything at all) inventory in multi with a price range below $250,000 for a turn key investment.  I think you'd have trouble even securing one in a "C" town.  You're not handy nor do you have a contractor ready, yet your looking at HomePath properties which doesn't make sense because the vast majority of them require a lot of work.  

I'm not a fan of creating rentals that are not within arms reach so at this point I'd find other methods in real estate investing to put my capital to work. Possibly through a crowd funding platform, direct lending to another investor or becoming an equity partner in a nearby venture. You can't take advantage of FHA since your primary home is in Millburn. You can still put your capital to work but in other ways. Once you have enough to execute in the area then you can. Perhaps also consider selling the West Orange house and put the equity you have in that home along with your cash on hand into a multi that will get you a better investment long term.