Where are the best markets to target in and/or near NJ in 2025?

Renting to a friend can complicate things, especially if you're starting below market rent.

If you are in a remote area or underserved market it could be higher.

What markets are you looking into? 

We are always priced under the market average for properties, as we prefer a slightly higher occupancy rate over a higher nightly price.  

@Grant Shipman Great stuff, I'm a big fan of co-living/rent by room strategy, and I do it here locally in Denver metro, and it is the best strategy in today's market for any house hacker to live for free or make money while living there, but they have to sacrifice personal space.

They are either dealing  with a property they are having problems with or they want more than market vale. 

One I know is based in LA as that's a huge market of course..

When you charge under market rent, the IRS deems that you do not have a profit motive and, therefore, disallows all rental expenses. 

Include a buyout clause allowing you to transition to sole ownership after two years, based on a pre-determined valuation formula or market value.Use an LLC to hold the property for liability protection and pass-through taxation, ensuring both partners benefit from depreciation to offset rental income.