All Forum Posts by: Vanessa Ivonne Hernandez

1. House hacking is possible in NJ. The biggest challenge is this is an expensive market and I found most tenants are paying below market rent. To see the best return on your investment it will be worth it to buy distressed properties, but in some reno work, force appreciate, and command market rent with favorable tenants who can pay rent increases every year.

2. You'll need to interview plenty of people to build the right time. For example, I interview over 20 investor-friendly agents to find ones that worked well with my personality (for my personal portfolio) and for my clients depending on the areas they want to buy in (North Jersey, South Jersey, Central Jersey). I can email you the interview questions I've used if it helps.

3. Here are my suggestions:

- Analyze deals on what the rents WILL be after you put in work, not what they are now.

- Talk with a Loan Officer to understand your purchasing power and the best way to structure you loan based on how you plan to scale your portfolio.

-Start interviewing people asap.

- Attend meetups to have face to face contact and get a feel for real estate professionals you'd like to add to your rolodex. 

Good luck!!

End buyers for...? Flipping? Wholesaling? Need more info.

I usually tell clients to focus more on the mortgage payment than interest rate. A lot of us have pricing incentives or can set up the loan in a way to reduce the amount you have to pay each month. 

FHA is the best play you can do. Use it while you can.

If FHA is no longer an option, then you may also qualify for a low down payment on a Conventional loan based on your income. Google "home possible income limits" and type the address of the property or area you're looking to buy in. If you make 80% or less of the Area Median Income, then you can get away with 5% down on up to 4-units. Most of my clients prefer to go this route because they can get rid of PMI (Conventional loans) instead of being stuck with MIP (FHA loans) for the life of the loan.

Good luck!

Most of the contacts you'll meet on BiggerPockets are investor friendly because we're all working towards the same goal of building wealth. You can start interviewing agents/lenders to build your team of people you feel comfortable working with. I'll message you interview question I've used. Good luck!

Welcome to BP!

What I also like to do is find other real estate investors on the meetup app. You can search by interests and location. It could be a good option for you to locate like-minded individuals and professionals no matter where you decide to invest in the country. I'm in Northern NJ and I found 3 groups on there. It's helped keep me immersed and focused on my real estate journey. Give the app a shot, it may help you make solid connections. Good luck!

FHA down payments:

1-4 units = 3.5% down

(1-2 units = are eligible for 0% down)

Conventional down payments:

1 unit = 3-5% down

2 units = 15% down

3-4 units = 20-25% down

Your strategy (house hacking, flipping, etc) will determine the right financing. Your lender would want to know how long you plan to hold the property too to get you the right terms. Hope this helps!

Ditto to everyone's comments.

If a low down payment is a priority for you then there are options for 0% down so you can step into equity on day 1. Something to consider if you end up moving away from 3-4 units and want to purchase a 2 unit. Good luck!

I'm from Northern NJ and in the process of buying my next property. I have a very helpful guide my realtor sent me that may help you with the estimates. Message me for the info!

Awesome you made the full jump! Looking forward to seeing you on the forums and sending help if I can. 

Purchasing a distressed property and putting in work to force appreciation tends to work in New Jersey whether you want to go the single family or multifamily route. Connecting with investor-friendly agents helps too so they can do things such as helping you identify hidden value. I know first hand how expensive NJ can be so depending on what your financing goals are, you also have the option to put 0% down on a 1 or 2 unit property so you can step into equity on day 1. There's ways to get creative with it. My best recommendation, if you haven't already, is to interview realtors and lenders who can help you scale your portfolio in the way it makes sense for you. Good luck!