All Forum Posts by: Christopher Morris

Hello BP! 

There is a large scale project going down that was bought by a Fortune 200 company in my home area that will bring in thousands of jobs and will inevitable make the appreciation skyrocket. Shorter term, it will bring in workers to construct and create this new development - Longer term, it will bring in the likes of famous celebrities from around the country (if not world) to live and stay here short to long term. 

What type of asset class do you think will thrive in a place like this? The appreciation in this area is already booming as it is the top two most expensive counties in the state. Short term deals don't really exist here as they are illegal in the surrounding area for the most part. 

I'm interested in buying single family (even though I hate this idea at a young age) because of the appreciation and low multifamily volume. Although in the next few years I'll be starting a family and will want a single family home, if I put in the work of finding off market / on market multifamily deal the medium term rents could be insane. 

This is still a few years out and there is an estimated 2 billion going into this project. 

Has anyone dealt with a small area that's about to explode like this? 

Happy Friday BP! 

As we all know, Fannie Mae has come out with their 5% down, owner occupied loan for multifamily (2-4) properties. I understand this eliminates the "self sufficiency" test that the FHA requires for 3-4 units - which is great news.

I already own an FHA house-hack in Northern NJ and I'd like to land another one in Q4 2024 which would roughly be a year since closing on my first. Ideally, I'd like to purchase another house-hack in the same town I currently am at, but... I hear that can be difficult securing lending on two owner occupied properties in the same town / area. From what I've heard, you'd basically need a good "excuse" to not live in the first one any longer. Those excuses could be - difficult neighbors, bad neighborhood, too far from job, and others. How true is this? 

What would be the best advice here? I do have other towns in mind as a backup, but my first choice would be to continue investing in the town I already live in. 

Also, does this Fannie Mae 5% down require the owner to live in the house for a certain period of time like the FHA? Any and all information would be greatly appreciated!

Hello BP! 

I have a duplex that has an up/ down set up. The first floor tenant is hearing some noise from the children upstairs. Thankfully, it’s only in one area that happens to be a hallway. 

I’ve looked up any floor materials like those connectable floor mats and thick rugs. Has anyone found those useful? Or have another option to deaden the noise? 

Let me know, thanks! 

@Roy Gottesdiener the point is really to get into real estate especially in a tough market like we are in right now. That’s where house hacking comes in. It’s the quickest way to get in since down payments is only 3.5-5% down payment. 

They always say “it’s not timing the market, it’s time in the market”. Where you really make your money is refinancing into a conventional when it makes sense. House hacking once, twice, helps you begin your portfolio.  

Hey Michael, 

Great idea in starting your real estate journey. First things first, you really need to find your buy box and where rents are at in certain areas. I’d recommend going on Zillow or Redfin and seeing the prices of multi unit properties and then compare them with how much rent you could potentially get per bedroom. 

Once you determine that, start looking for a rockstar team (start with an agent). 

One big mistake people over look is going at it alone. Make sure you utilize your GF’s dad as much as you can while also looking for real estate meet ups in the area. Knowledge is power! 

I think if you can find a deal that has value add, it makes sense. 

Finding a property where you could add a room to a unit and if the rents continue to go up $50 or $100 a year. If you’re willing to stay 2, 3, 4 years then you’re closing that cash flow gap quickly. 

I listened to everyone here on BiggerPockets and didn’t “time the market” in regard to the higher interest rates.

I closed on a house hack a few months ago with the SAME EXACT rate. I do not regret it for a second! If you're doing it right. Your tenants will be paying most of the PITI.

Good luck!

Thank you, this was motivating! 

Hello BP! 

After being fully “leased up” on my first multifamily property, I’m thinking about my next one. 

There’s two strategies that are running through my head. 

First: buy another multifamily property and FHA (or 5% owner occupied conventional) again, house hacking it for max rents.

Or

Second: buy a single-family fixer upper (400-500k) home, live in it for 2 years and either sell it to avoid capital gains tax or rent it out. 

Things to note: my S.O. is pretty against house hacking (but willing to do it for a year). I live in NJ so housing prices are fairly high. I anticipate having around 100k in liquid cash for time of next purchase. 

Ideally, I’d love to house hack again for a year, then purchase a single family after a year to eventually sell or rent out. Just not sure if I am able to do all over that in NJ over a 2-3 year period with my cash on hand. 

Not exactly sure where I’d sit from a cash out refinance standpoint but it’s a thought. 

After this, I’d love to get into long distance investing / airbnbs. But that’s a convo for another day…

Let me know if I’m off on my thinking here BP!

Hello BP, 

I’m a newbie investor and I’m a believer to never be the smartest person in the room… 

So I ask you all: what are newbie mistakes in Multifamily investing you typically see or have encountered yourself? How can these be avoided? 

Let me know BP!