All Forum Posts by: Shawn Mcenteer

Welcome @Darwin Plada House Hacking New Jersey, is what go my wife and I to Fi.  Always happy to share what works and help be a guide for you journey.  All the best!

Hi @Max Fajardo sounds like you may qualify for low money down conventional which is a great way to go. My wife and I have never put more than 10% down on a house hack, most of the time it is 5%. You'll get much better rate with owner occupied loan. Even better news is there are a few lenders out there that offer no PMI with these types of loans, jaw dropping stuff.

Hi @Charles Antoine Malenfant I have been doing business in the area for over a decade and I will let you know if done right you can attract very high rents with proximity to train.  If property has good layout I have seen many cash cows pop up there. Just be aware cash cow on one street may not be one on the next.  

Marketed towards house hackers may make it sell for more. Single family house hacks preform well in your area.  

Hi @Tom Hall what type of home is it;  multi, single?   Where is home located? Is there room to renovate/did you renovate?

Hi @Dylan Ritch sounds to me like house hacking may be a really smart and lucrative way to go.  Ill let you owner occupying multi family properties is what got my wife and I to FI, what makes house hacking so great is the baby steps to  becoming a full time real estate investor.  Learning to be a PM is not a hard task.  I have self managed for over a decade now and yet to miss a single payment of rent, to hire out PM and have them take 8% when I have a team in place to handle anything that goes wrong is not worth it.  Finding the right property eliminates the majority of hassle you'll get as landlord. Happy to share the systems and techniques that work in New Jersey and help map out a plan that can get you on your path way to FI.

Hi @Jesse Santos there is no negotiating security deposit.  Huge red flag, I would pass on this applicant.  Long story short we do not have much protection in NJ, collecting full security deposit is a must.  On top of this not be able to pay 1.5 month security would make me nervous,  if they cant pay that fee will there also be issue with paying rent each month.  The majority of properties I rent require 1 month to landlord up front, 1.5 month security and 1 month realtor fee in addition.   When someone can pay $14,000 just to get into a rental there is a really good shot they can afford and will pay each month.  I use this as the final screening check.   

Hi @Ali Khalid what type of properties are you looking for?  I get a decent a mount of off market multi family deals perfect for those looking to house hack in NJ but they tend to be much higher price point

Depending on town, zoning and structure itself it will vary. Many duplexes are built this way in North Jersey but legally converting them tends to be an up hill battle. Over the years I have had great success turning properties like the one you are describing into luxury lofts part of the second floor unit. Legally much easier to get away with and handling utilities is much cheaper, simply connect them with second floor. Still with this being said towns have rules in place against expanding attic/3rd level spaces so even keeping property as legal duplex with luxury loft is not a given. Keep in mind separating utilities so each unit has their own is an entirely separate factor you'll want to take into consideration other wise the bill gets put onto the landlord if you don't have things separated, over time that becomes a huge expense. You'll want each unit to pay their own bill unless you are planning to implement an MTR/STR strategy in which case occupants tends to not put utilities into your their name and you are charging a much large fee each month.

 Absolutely. Will be all over North Jersey today and tomorrow checking out multi families.