First Time House Hack - Renting by the room in NJ - Advice Needed

[Brook Copeland]

Hi All,

Would love any advice or networking opportunities for Central NJ as I'm still new to real estate investing. 

I'm looking into a property in Central NJ that after initial analysis could be a solid opportunity to house hack and build equity. However, would love advice. After listening to episode 392 with Todd Baldwin, the concept of house hacking while renting out by the room has been on the top of my mind. I have a 3/4 property in my sights that I feel I could turn to a 4/4 fairly easily. The plan would be to rent out essentially each bed/bath combo as 1/1's individually, live in one myself, and employ the strategies Todd uses (building in utilities, common supplies, cleaning services, etc. into the rent) to make it a seamless process for tenants. 

The catch here is I have my unfair advantage of potentially being able to find tenants for this area that others could not. However, I don't know all of the nitty gritty details around legality, watch outs, insurance, etc. to make sure I'm doing this right. I've reached out to a few local agents via BP messages, but haven't heard back yet.

Any advice on NJ regulations, watch outs for house hacking by the room, general house hacking advice, or anything you can offer of value would be great! Is this a good idea or not?

Thanks!