All Forum Posts by: Shawn Mcenteer

Hi @Desiree Doubrox sounds like poor management.  I have college rentals and plenty of clients with college rentals around Seton Hall in South Orange and Maplewood.  We attract high quality tenants.  Unfortunately many landlords take the first group they find in these situations and come from the ideology that all college students are slobs so no sense offering anything nice.  If property is done right even in todays market you can hit 1% rule and attract very desirable college students.

Hi @Noyessie Hubert that should be correct.  New Jersey state law allows for owner occupants to have much more freedom.  The concern with places like Irvington will be once you move out and no longer owner occupy how do you raise rents legally.   Keep in mind rent control is 1 thing, its a laws for existing tenants but some city's like Newark are so strict that you must get approval for what rent can be even after a tenant moves out and new ones move in.  They make setting high rental prices very tough.

Quote from @Thomas Haessig:

I have two accepted offers to buy and house hack. One is fourplex near downtown of Union city new jersey and the other a duplex in jersey city heights neighborhood. The fourplex looks like it going to cash flow much sooner but the duplex appreciate more? Does anyone have experience with this and have a suggestion of which to go with? Can provide more specific details if interested in helping.

Is this your first house hack?  How familiar are you with the rental laws in each area?

Union City I tend to avoid, there are a few pockets that work for MTR but for the most part the city's rental laws make life very tough for landlords.  Jersey City tends to fluctuate with rent control laws, right now they are more favorable for landlords then they have been in the past.   

Of these properties do they have parking and how close to public transportation are they?  What type of strategy are you looking to implement; LTR, STR, MTR other? 
Are you working with realtor and has that realtor house hacked before?

Hi @Andy S. list right away.  For future tenants I would include in lease verbiage around listing property for rent prior to them moving out so you have time to market the property.  I have turned over all of units multiple times the highest vacancy I'll get us under 1 week becuase property will be up for rent 2 months prior from existing tenants moving out.

I’m sure I can invest somewhat closer to me but it’s very pricey I’m in NJ. I wouldn’t mind the tri state. 

 Hi @Timothy Newsome is house hacking out of the question for you in NJ?   I run into this issue frequently where NJ investors are looking into out of state thinking it is cheaper, that's not always the case.  The price of homes may be lower out of state but the down payment becomes much more plus the cost of having boots on the ground.   $300k Property out of state will cost you $75k in down payment.  $1,000,000 in New Jersey will cost you $50k down payment. Low down payment with potential for huge rent increase year over year making house hacking very advantageous in New Jersey.

Welcome @Ashley Guerra New Jersey is a great place to invest.  I spend majority of my time in central and North Jersey.  If you need help with landlord laws, house backing strategies, or traditional MTR investing specific to New Jersey happy to help.

Quote from @Christopher Morris:

Hey Shawn, thanks for the reply. I’d love to keep house hacking but I think this next one has to be the last one to keep the miss’ happy. Otherwise, I agree with your strategy. 

Being this next house hack will likely be my last, this is why I’m trying to think of other creative strategies. 

I hear you Christopher.  I will say this short term sacrifice can lead to major long term gains.  Having 4 kids moving property to property was not always a walk in the park for us.  We now live in the a single family "forever home" because we felt the needs to settle with our kids getting older, long story short we want to get into a multi family again. Really itching for it knowing how much faster and easer it is to acquire properties. Best part about real estate there is no wrong answer, house hacking or not there is always a way to make it work. 

Hi @Alan NA if you are open minded to different strategies 1% rule is alive just over the river in NJ.  I have close on multiple properties in 2024 that are 1% or great in New Jersey.  The price to enter is a bit more expensive but we are seeing 1% on certain deals. 

HI @Zachary Sakena putting property into LLC in my opinion depends on that strategy you are looking to implement for next property and if you want to leverage property moving out of into LLC. Something to keep in mind is the lending options change when in LLC, so leverage owner occupied loans for Refi/HElOC etc go away once you move out. Make sure you situate (if you plan to) prior is crucial. Personally looking back at it switching into LLC was a more of a headache for me and did not do much for adding a level of protection that insurance did already handle.

@Raju Penmatcha plenty of those.  A matter of fact that was a huge metric for my me and my wife because we were implementing a house hacking strategy moving property to property with 4 kids.   Having good schools played huge part in the properties we purchased.