Primary Residence with Investment in Mind

[Emre E.]

Hello Everyone,

I currently live in Bergen County (south), new to RE investing and looking to connect and learn from others. I’m looking to buy my primary residence with investment in mind (i.e. possibly rent it out down the road and be able to have cash flow).

What I’m looking for on primary residence:

-Looking into Bergen, Passaic and Essex counties.

-Looking for a town with good PS system (especially elementary school). Have 2 young children. Any town recommendations?

-Price range: 350K-500K. Open to fix the house as long as it doesn’t require major repair.

Options I’m considering:

-Put 3.5% down with FHA loan. PMI is something to keep in mind. My credit score is close to 800. I was wondering if there is any lender that waives the PMI b/c of the credit score. Any idea?

With this option the remaining money to be used for a new investment –maybe buy multi-family and rent it out or do BRRRR in a reasonable market in NJ.

-Put 20% down with conventional and save over time for next investment.

-House hacking: This might be ideal if I find side-by-side 2-family house with a reasonable price but it doesn’t look easy to find in the areas I’m interested.

I know it is a little loaded but I would appreciate any suggestions, input or opinion you might have.

Looking forward to connecting with like-minded people throughout NJ.

Thanks in advance.

[Joe Martella]

@Joe P. you are correct, FHA the PMI is for the life of the loan if you put down less than 10%. If you put down more than 10% it is for 11 years. It used to be only for a certain period of time, but that changed after 2013.

FHA mortgage insurance removal | Get rid of PMI or MIP (themortgagereports.com)