All Forum Posts by: Chris Lombardi

Hey Guys,

I'm looking to invest in a multi family property and live in one of the units while renting out the other.  My price point is pretty low and I'm looking around the Jersey City area - needless to say, many of the places I'm looking at have numerous problems.

I finally came across a place the other day that looked in good condition in a safe neighborhood.  The place has existing tenants and needs flood insurance so I sent my realestate agent the following questions:

1) How many flood claims occurred in the last 10 years?

2) Was the foundation and structure updated recently and when? (needed for flood insurance quote)

3) What is the elevation of the foundation?

4) Any information on the tenants - do they pay rent on time, were they vetted, do they cause trouble?

She responded by saying that these are not typically questions we get answered until after we close, but I feel like I need answers to them before I make an offer.

Is this reasonable?  I'm wondering if I should find a new real estate agent or if this is common place.  Let me know what you guys think and if there are any other questions about flood insurance or existing tenants I should be asking.

Name is Chris Lombardi and really just stumbled upon my brand new interest with real estate.  A couple of my friends started buying homes and apartments just to live in, so I thought I'd do the same and make some money while I'm at it.

I currently own a grand total of 0 properties, but am looking to start that house hack technique, buying a multi family home and living in one of the units.  

I have a realtor.  I have the upfront cash necessary.  I'm pre approved for the mortgage.  But no one told me it'd be so hard to find a place.  The multi family units in my area are either in a very dangerous part of town or are way too expensive to cover the expenses with the rental income.  I'm not afraid to get my hands dirty as my father and I have a side hobby of handywork, but it's difficult to even find a fixer upper in a good area.

If anyone is willing to help, I can certainly use some opinions:

How important is it to get a place in a great area?  I really don't mind living in a "not so nice" area.  I can take care of myself, and if I can still get enough rent to make the deal worth while, is it still worth it?

Is it maybe worth it to get a more expensive place in a more desirable part of town, but have a negative cash flow that is no greater than my current rent?  i.e. I would only be paying in what I'm paying now in rent, the other tenants would cover the rest.  Is this a viable strategy?  I'd still be earning equity on the house.

Anyone have any insights in house hacking in the Jersey City area?  Any advice would be much appreciated.

Thanks and looking forward to interacting a lot more here!!