Looking to get started - Looking to talk with an experienced NJ investor

Jersey City, New Jersey
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Looking to get started - Looking to talk with an experienced NJ investor

Mike Mullen
Member since 2023 · 4 posts · 4 votes

Hi! 

I am looking to get started in real estate investing in Northern New Jersey.  I have an idea of what I want to do to get started but have a lot of questions and would love to pick someones brain about investing in NJ.

I would like to get started by house hacking for a year or so and build up some equity and save some cash for another after that.  

What are some of the things you would do first to get an idea of what and where I should start looking?

In the NJ market how likely is cashflow in the first two years?

Just a ton of beginner questions and would love to chat with someone about it if anyone is in the Morris County/Union county area!

Thanks in Advance!

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2y

@Mike Mullen

welcome.  I invest in PA and CT.  happy to help with any questions you have.  cast a wide net, get preapproved with a lender, and look at lots of properties in person.  but i want to point out something important about house hacking.  The goal is not to cash flow, and it never was.

a lot of new investors run the numbers on a house hack and get discouraged, because the rent they'd take in wouldn't totally offset the mortgage. but the goal was never to cash flow positive - that was just a feature of the market several years ago when interest rates were so low. but it's not 2016 anymore.

it's just to pay the same, or less than, you would renting.

I'm going to use simple numbers. say you could rent for $2000 a month, or you could house hack, and if you house hack, you'd still need to pay $1432 toward the mortgage after collecting rent. this is way, way better. why? because not only are you saving a few hundred bucks, you're building equity.

make sense? cool. go look at 50 properties.  good luck.

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Mike Mullen

    welcome.  I invest in PA and CT.  happy to help with any questions you have.  cast a wide net, get preapproved with a lender, and look at lots of properties in person.  but i want to point out something important about house hacking.  The goal is not to cash flow, and it never was.

    a lot of new investors run the numbers on a house hack and get discouraged, because the rent they'd take in wouldn't totally offset the mortgage. but the goal was never to cash flow positive - that was just a feature of the market several years ago when interest rates were so low. but it's not 2016 anymore.

    it's just to pay the same, or less than, you would renting.

    I'm going to use simple numbers. say you could rent for $2000 a month, or you could house hack, and if you house hack, you'd still need to pay $1432 toward the mortgage after collecting rent. this is way, way better. why? because not only are you saving a few hundred bucks, you're building equity.

    make sense? cool. go look at 50 properties.  good luck.

    5Reply
  • Richard Loniewski
    Real Estate Agent · NJ · Member since 2021 · 568 posts · 127 votes
    2y

    I am a lender and investor in North Jersey, more than happy to connect, rentals are tough in NJ that make sense but they are out there.

    1Reply
  • Joseph Guzzardi Jr
    Rental Property Investor · Member since 2019 · 411 posts · 148 votes
    2y

    @Mike Mullen Happy to help answer any questions. Investor agent and landlord with multiple properties in NJ.

    0Reply
  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    2y

    @Jonathan Greene specializes in the NJ market, is a super experienced investor, and has a team of agents. He would be a great person to connect to regarding expanding your investments in NJ. Shoot him a message, he is super approachable. 

    [email protected]781-964-3200Podcast Guest on Show 69 Doors from ONE Real Estate Deal Using Other People’s Money
    1Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y
    Quote from @Andrew Freed:

    @Jonathan Greene specializes in the NJ market, is a super experienced investor, and has a team of agents. He would be a great person to connect to regarding expanding your investments in NJ. Shoot him a message, he is super approachable. 

    Already in touch with @Mike Mullen and hopefully have him coming to our next meetup in Jan. Thanks, Andrew.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    0Reply
  • Jason Allen
    Attorney · Columbus, OH · Member since 2023 · 193 posts · 145 votes
    2y
    Quote from @Mike Mullen:

    Hi! 

    I am looking to get started in real estate investing in Northern New Jersey.  I have an idea of what I want to do to get started but have a lot of questions and would love to pick someones brain about investing in NJ.

    I would like to get started by house hacking for a year or so and build up some equity and save some cash for another after that.  

    What are some of the things you would do first to get an idea of what and where I should start looking?

    In the NJ market how likely is cashflow in the first two years?

    Just a ton of beginner questions and would love to chat with someone about it if anyone is in the Morris County/Union county area!

    Thanks in Advance!



    I would invest in the Columbus, Ohio. I just walked a turnkey property that beats the 1% here in town. This property should collect at least 1800 - 2100 a month in rent. There are plenty of opportunities like this in Columbus currently, both on and off the market. With $150k, you could easily pick up 2 or 3 cash flowing properties. I'd move quickly though. A lot of out of state investors are buying up the best opportunites.

    1Reply
  • Benjamin Sulka
    Cleveland, OH · Member since 2022 · 811 posts · 578 votes
    2y

    Mike,

    Welcome to forums! 

    Like Nicholas said, don't be discouraged if your house hack numbers don't work in year 1. You'll be living in one of the rentable units, you'll be putting a low payment down and rates are high. All of the factors will keep you from cash flowing. If you can pay less than rent, and if you have sufficient reserves, that's the way to go. 

    Run the numbers for how things look after you move out. 

    Cheers! 

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    2y
    Quote from @Mike Mullen:

    Hi! 

    I am looking to get started in real estate investing in Northern New Jersey.  I have an idea of what I want to do to get started but have a lot of questions and would love to pick someones brain about investing in NJ.

    I would like to get started by house hacking for a year or so and build up some equity and save some cash for another after that.  

    What are some of the things you would do first to get an idea of what and where I should start looking?

    In the NJ market how likely is cashflow in the first two years?

    Just a ton of beginner questions and would love to chat with someone about it if anyone is in the Morris County/Union county area!

    Thanks in Advance!


     I see a ton of folks from New Jersey investing out of state. NJ is BRUTAL for landlords.

    0Reply
  • JooYung Choi
    Realtor · NJ · Member since 2023 · 215 posts · 99 votes
    2y

    Hey Mike, 

    As you already know, cash flow in NJ is hard to come by. Doesn't mean it's not out there. I personally have found success midterm renting in Morris County. More work for more reward. 

    Let's connect!

    0Reply
  • Mark F.
    Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes
    2y
    Quote from @James Wise:
    Quote from @Mike Mullen:

    Hi!


     I see a ton of folks from New Jersey investing out of state. NJ is BRUTAL for landlords.

    Certain counties (ie the blue ones like Hudson and Essex like where the OP is located) are brutal which are the ones you hear more about as theyre more populated. Your more purple/red counties are way more reasonable and the ones I invest in. Judges are not as tenant friendly and you can expect a normal eviction time frame. The state tenant/landlord laws, while not as favorable as a Texas/Florida etc state, are not as bad as people make it out to be. I've read California's (specifically LA) when I almost moved there and those are brutal any way you slice it.

    OP, NJ can be a great place to invest. But make sure you consume a good amount of NJ specific info as well as your normal RE info. We may habe high property taxes but our rents are high with increases quite common, and insanely low vacancy rates. Good luck.
    2Reply
  • Jayson Cain
    Lender · Manhattan Beach, CA · Member since 2017 · 423 posts · 268 votes
    2y

    Hi @Mike Mullen,
    I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals. I've started looking at Columbus because my business partners have found success doing Mid Term Rentals there and the returns are solid.

    I've also helped other investors with their DSCR loans and flip projects in Columbus. Happy to share my experiences and chat with you more if you're interested.

    1Reply
  • Mike Mullen
    OP
    Member since 2023 · 4 posts · 4 votes
    2y

    Appreciate all the input guys Thank you!  Excited to keep learning and making some moves.

    0Reply
  • Cheryl Schuck
    Real Estate Agent · Parsippany, NJ · Member since 2013 · 186 posts · 71 votes
    2y

    @Jonathan Greene Can you tell me a little about your meet up group? I live nearby and I mayi like to join if possible as well. TIA :)

    0Reply
  • Ash Gowda
    Member since 2021 · 17 posts · 0 votes
    2y
    Quote from @Joseph Guzzardi Jr:

    @Mike Mullen Happy to help answer any questions. Investor agent and landlord with multiple properties in NJ.

    @jo, am in NJ also, can u dm so we can connect. Thx

    0Reply
  • Dave Tab
    Member since 2023 · 4 posts · 2 votes
    2y

    Hi! 

    I am also looking to buy my first investment property now, preferrable in Northern New Jersey. I'm interested in buy and hold property, vs cash flow (given it's NJ AND the current rates!).

    I have all the funds at hand for at least one property, yet I'm confused between the various choice options including Jersey City, Newark, Union County, Bayonne, Camden etc. I'm looking to connect with the right real estate investor to help me find the right deal from beginning to end. 

    I'd love to connect with someone trustworthy, honest, who knows the market, and would be able to guide me step by step until closing, and even finding the right tenants. If you think you have good deals for me to look into, then let's be in touch!

    1Reply
  • Maddie Delayo
    Realtor · NJ · Member since 2024 · 19 posts · 4 votes
    2y

    Hi Mike! We manage a ton of rental properties for clients in Union, Middlesex, Somerset, and Morris county, and I own a rental in Middlesex county myself. NJ is very tenant friendly, but there's plenty of opportunity to cash flow with the right property & team behind you. 

    It's important to know and consider the max rent potential, cost of rehab, and municipal requirements (rent control, registrations, inspections). Some towns can be more landlord friendly than others. 

    0Reply
  • Richard Loniewski
    Real Estate Agent · NJ · Member since 2021 · 568 posts · 127 votes
    2y

    I am a lender and investor in North Jersey, more than happy to connect, rentals are tough in NJ that make sense but they are out there.

    0Reply
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