Property #1 Update - House is Hacked! Now what?

Question

Hi BP family!

-I settled on my first property back in March, below are the details:

-FHA loan, 3.5% down

-Condo in Cherry Hill, NJ (south jersey) - 2 bedrooms, 2 bathrooms + loft. I am living upstairs in the loft, both bedrooms are rented to longtime friends who have been extremely reliable, tidy, and all-in-all great roommates.

-With my current situation, the numbers are working really well!  (Mortgage+HOA fee + Utilities) - (Rent) = ~$250~ a month out of my pocket to live with my good friends.  Not bad if you ask me!

My question for you all, BP family, is what would you suggest for property #2?  I'm going to leave this wide open and not mention any of my current plans, that way I can really feel the pulse of the community.  Thanks everyone!

Stephen Kappre · Answer

I'll shoot and say a nice 2-4 unit. Buy one needing some work. Put some sweat equity into it. Rent it all out. Of course we don't know your financing or cash available so ... :)

Allan Anderton · Answer

I remember listening to a pod cast about NJ and it saying that NY was starting to flow into that local area? "might be wrong" but IF it were me I would be looking no less then a 4 plex I think that if you get good price and put like Stephen said sweat equity into it you will get a win win. I would also check your comps in rent say go back over the last 5 years and I would bet you are seeing over time increases to your rent in your area due to growth? so I would jump on a 4 be a live in LL and rehab as you could then gooo with the BRRR into your next property