House hack in Bloomfield, nj

[Matthew Palumbo]

I am very new to real estate investing. I've been looking for deals in the Watsessing/East Orange/Upper Roseville area to house hack (mainly 3-4 families). I have not found much that will cash flow to my liking. I'm now thinking of a different strategy. There are a ton of 2 families going on the market that are being flipped. So basically, it is a 2 fam with 2-3 br per apt and everything is brand new, but the basements are unfinished. I'm a single guy looking for cash flow only. I am thinking I can offer below market to get the cash flow I'm looking for, then renovate the basement to make an apartment for myself. I'm wondering how I would present that to a lender so I can get an FHA loan. I have about 30k saved to put down and use towards renovation. Am I crazy? Like I said I am extremely new to real estate investing and looking for any advice you all can give.

Thanks

[David Michael]

@Matthew Palumbo Welcome to BP!!! Here in NJ it will be hard to get something good below market value. The second hurdle you need to get over is explaining to the bank the BASEMENT mAKES THE HoUSE a three family. This is impossible and can’t be done. Your best bet is to get a three family or a house that has a basement that’s livable legally.