All Forum Posts by: Scott Stewart

@Chris Green everyone else above has added great advice to the situation overall, so I figured I'd just chime in with my two cents and a tale of my own experience in finding tenants willing to overlook my less than ideal parking situation that will hopefully bring you some sense of optimism for future tenant searches. 

I generally agree with the advice that it might be ideal to take advantage of the market in Montclair right now to maximize your sales price on the current home and then reinvest it into a multifamily property, but I noticed your cash flow numbers above and it sounds like you do pretty well on this property as is. Adding more tenant headaches with having to find two sets of tenants for a multifamily might actually be counter-intuitive for you right now. 

As for the parking situation and future tenants, I have a two family house hack in Glen Ridge that is on a main road with only two parking spaces available. To date, I have not granted access to either spot to a tenant & have instead purchased a parking permit for a local lot for them to park in legally. I disclose the parking situation upfront when screening tenants before they even come to see the place and it has certainly limited my overall options, but I can say that with some patience & an understanding that it does likely impact my maximum possible monthly rent I have had great luck finding tenants willing to overlook this small drawback to an otherwise great rental. I don't know where your home is located, but in my experience many of my clients only move here with one car shared by the family - almost anywhere you are in Montclair, public transportation is nearby, so I think you'll be ok finding the right tenant.

Wish you the best of luck in resolving the issue and hope you stick with the real estate investing - the occasional headaches are always worth it!

Hey Robert, would love to connect on your experience down at the Jersey Shore. I'm an agent and currently own a two family house have in Glen Ridge, but definitely want to pick something up at the shore for personal/investment purposes. Where are your shore properties?

Hey Emma, 

Were you looking for any info specifically on multifamily homes in Bloomfield?

@Ryan Allen can't speak to Hopatcong as a long term investment, but what makes you think you can't stick to your plan of house hacking a multi-family in the Bloomfield area? Values have definitely increased in both single family and multi, but the key to house hacking success in my mind is determining your goal budget for what it'll cost while you live in one unit and then to consider whether the place would cash flow from day one if you never moved in. I see plenty of opportunities for house hacking in and around Bloomfield still.

@Susana Minaya congrats on taking the first step towards building financial wealth with your decision to invest in your first house hack. I'm a local realtor and own my first house hack in Glen Ridge. You should definitely connect with a lender to determine your buying power and I'd be happy to connect if you want to learn more about the actual buying process.

I would double check with your lender that they'll do conventional with only 10% down on a two family. I believe guidelines still require 15% down on a conventional, even if it's owner occupied. If that's the case, you'll be going FHA either way and the decision really comes down to whether you want a lower monthly payment or more cash in hand after the purchase. Also keep in mind with an FHA loan you'll be stuck with the mortgage insurance for the life of the loan. You can always refinance out of the FHA loan down the road when appreciation or improvements increase the equity you have in the home.

Hey Mark,

Let me know if you'd like to connect. I'm a local realtor in Montclair/Glen Ridge/Bloomfield. With total down payments of $10k and then $20k, my wife and I bought our first condo in Montclair that we held onto and now own a two family in Glen Ridge that we bought with an FHA mortgage. It's a competitive market, but the key is to look at the numbers and don't make an emotional decision if you want to have a successful first house hack experience.

Hey @Jonathan Rivera, I'm a local realtor and budding HOLD/BRRRR investor in your area (properties owned in Glen Ridge & Montclair currently). I think there are a lot of factors into deciding what your best decision wil be with your properties, but generally speaking the market is very strong in Montclair right now and may be a big influence in what path you choose.