My husband and I are both teachers (I work in Newark and he in Bridgewater, NJ). We are looking to invest in rental properties (multifamily) to hold for about 10-15 years as an additional income. Since we are new to this I am seeking any information anyone is willing to help us with. We were approved by the bank for $350 but would like to stay at about half of that so that we can purchase a single family for ourselves in about 5 years. We currently have 25K to put down. A few specific questions I have,
Any areas (between Newark and Bridgewater) that anyone knows of having good rent rates and lower property values/taxes?
Does anyone know any agents that work with investors in that area?
@Anna Monteiro do you guys want to actively manage the deals yourself? Your goal is extra income right?
Hi @Anna Monteiro Welcome to BP and congratulations on deciding to invest in real estate, like you I'm also new but I started wholesaling in effort to build a little bit of capital so I could purchase my first buy and hold.
The only bit of information I can provide in regards to investing in Newark and surrounding areas (my experience is with Jersey City, Newark, Elizabeth) you have to asses your risk tolerance, what I mean by this understanding what your willing to tolerate is very important since Newark is very cheap invest knowing that dealing with tenants might be an issue but this all comes down to your screening process and the location you choose to invest in. Since you have 25k to invest consider using a FHA or a 203k loan search around BP to find more details about it and lastly connect with other buy and hold investors so you could learn from them.
Pick an area you feel comfortable with and then go from there to check rents received vs. purchase price to see if you can get good positive cash flow with the returns you are looking to receive.
@Anna Monteiro Hello welcome to BP! You are going to find this site to be an incredible resource for you.
Maybe look into Somerville NJ. I was poking around Realtor.com and saw a few multi families for sale. Also, most of the towns along Rt. 22, on your way to Newark, have multi families. Dunellen, Plainfield, Union, Cranford etc...
Since you have 25k to put down I would def suggest "house hacking" which means actually moving into the multi family home and renting the other unit(s) to lower or eliminate your living expenses. This will allow you to qualify for the FHA loans and not require you to put down a full 25% which most banks require on a non-owner occupied investment property.
Once you find an area that you are OK to live in then you can start searching further. Use this site to run the numbers and ask away!