Newbie looking for advice / house hacking in South Jersey

[Jose Fernandez]

Hi all, new to the forums. My girlfriend and I are looking to buy a househack property duplex/triplex, however the recent climbing prices of real estate is alarming and a little scary for us since we've never invested in any real estate. I currently work in Egg Harbor Township but live an hour away. Looking to significantly reduce the commute by living closer, but also make an investment at the same time. I saw others suggesting to wait out the current raise in market prices, while others are saying to not time the market. I get both points of view, so really just looking for advice. Thanks!

[Canesha Edwards]

@Jose Fernandez

Hello Jose- Welcome to BP.

The easiest way to make a decision is to create buying criteria and stick to it regardless of the current status of the market.

House hacking is a great way to go especially if you go the FHA route ( loan for 1st time) home owners. FHA loans can be used to purchase a 1-4 family residence with very low down payment and credit requirements. Depending on your credit score you could get into a property for 3.5% down.

I suggest speaking with a few lenders in your area. They will be able to tell you the loan amount you qualify for. I’m assuming this will not be your forever home, so look for properties with that in mind. Buy where it makes good business sense. Don’t buy a property that’s valued near market highs for the area. Just because prices have increased over the years does not mean it will continue. Make sure to analyze all properties in a conservative manner.

Also- don’t purchase a home for the full loan amount that you qualify for, and make sure you’re able to cover the mortgage by yourself without the income from would be tenants. With the current environment- you might not be able to rent the property right away or fill all vacancies right away.

I hope this helps. Feel free to PM me with any questions.

Best,

Canesha