Metuchen, NJ · Member since 2017 · 14 posts · 2 votes
Hey guys,
I am new to real estate investing but have been doing my research on how to get started. I am in my early 20s but want to get started as soon as possible. I had 2 questions which I could use some advice on please!
1. Are turn-key investments good for a first time investor? Keeping in mind that I am fresh out of college and have about 20k saved up so far.
2. Living in the NJ area. Does it seem more advantageous to start in the NJ area so it's in close proximity? My only concern here is the exorbitant property taxes. Many people have said Multi Family Homes are the way to go in NJ. What's your take?
I am willing to spend 50-60k on my first investment.
Appreciate any advice!
Thanks!
I live in Hudson county and househacked for my 1st deal. prices and taxes are ridiculous here. I'm 4 years into it and could never imagine paying taxes and maintenance on a place anywhere in NJ burbs without having rent coming in to subsidize it.
That said, I still pay about $1k/mo out of pocket(including utilities for the building) to live in my 3 family BUT that same 1k is the exact amount of principal reduction per month. So just moving it from short term pocket to long term pocket.
Living in this subsidized way has essentially thrown rocket fuel onto my long term savings and how much I can,set aside for the next deal, brokerage acct, and 401k. Only $1k out of pocket/ month (but not really since I'm paying down principal) is a steal I'm Hudson county where I watch my friends that have condos in Hoboken pay 4-5k per month only to pay down less than $1k in principal monthly. All those extra thousands I'm not paying are going to my savings.
That said, I've had hiccups and major major expenses in the 10s of thousands. and it's practically impossible to find a decent reliable contractor. although so eager to get into another deal and expand, after 4 years of experience with (great) tenants, unexpected issues & costs, while not ramping up as fast as I want, it's been fantastic learning and key is hands on experience with management and on exactly what goes wrong and what you have to deal with and hands on management
@Bhavik Patel The key is to find a great team! Ideally you would find a company that has everything under one roof. Acquisitions team, renovation crews (fully licensed and insured), Property Management, and a Real Estate Investment Brokerage in case you ever decide to sell.
By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind.
@Jennifer Slaughter we are looking forward to seeing you and your family at the May property tour, in Memphis!