Starting out in New Jersey

[Henry L.]

All:  I'm just starting out in NJ, and I was hoping to get some good advice.

My goals are to get into the pattern of doing 4 rehabs a year and 1 buy-and-hold a year.

I'm considering buying a 3-family (about $300K-$400K) or a 2-family home ($230K- $280K) as a buy-and-home investment property. I can't get out of my current apartment lease until next July without a big penalty, so I can't do an FHA loan.

However, if I buy even a $300K home, that ties up at least $75K of my cash (25% of $300K) but I seem to have a hard time finding good rehab deals (any wholesalers want to bring me a deal? :) ).

Should I go for it and buy a 3-family home for about $300K, and then just keep saying money till I have enough for a rehab later?  Or should I focus on doing a few rehabs first, and then purchase a buy-and-hold later?

[Larry K.]

I think the buy and hold v rehab question is best answered by your income and job situation. 

If you have a good job you like then buy and hold can work. If you need the money to sustain then the money from buy and hold is slow, it is long term play, so you would then probably want to rehab.