I am looking to use my Heloc equity (90k) to purchase a home or apt. The payment on Heloc for 30yr is $600 per month. I want to device a strategy for this to be initial start as I create my real estate portfolio. I am trying to find areas in NJ that are upcoming, low on taxes, decent schools, close to train to NY, and low crime. Would appreciate feedback and suggested areas. This property will be put up for rent.

@Rocky Ahmed any responses plz

Hi Rocky,

I would suggest focusing on one investment type for now instead of looking at both residential and commercial. Your question is very vague. To find an area in NJ close to trains to NY, low in crime, near good schools, with low taxes is a needle in a haystack and something everyone is looking for. With 90k from a HELOC and putting 20% down, you are looking at a purchase price of $380,000 to leave money available for closing costs and a reserve for repairs. With this budget, residential might be a more affordable option.

Are you working with a realtor?  They should be able to narrow down your searches.  You can follow the train line and do your own search around the surrounding areas.

Don't forget to factor in the $600 HELOC payment when running your numbers. I am using a HELOC for my investment as well and it usually ruins a lot of deals.

@Brett Baginski thank you Brett. What should be the area of focus then? I would think commute should be main criteria?

Also, I am not sure what approach to take. Some recommendation have been to

1) Get multi family and then rent that out.

2) Buy a single family in target area I want to live in future and rent it out.

3) Get a one-two bedroom apt for 150k and rent that out.

The area of focus really depends on you.  Where are you from?  How far are you willing to travel to look at properties and maintain them if you do not use property management?

I can't really steer you in any specific direction as that is something you need to decide on.  Initially I was looking at duplexes, but the numbers didn't work for me.  So now I am focusing on single family properties in Ocean County, because that is where the numbers make sense for me.

Multifamily's in my area, Monmouth County and Ocean County, just never seemed to work out. My HELOC payment or needing a larger down payment always killed any possible deal after I ran the numbers. Maybe it will work better for you. Speak to a realtor and get set up on the MLS emails for both single family and multi family units and see what works and what doesn't.

@Brett Baginski . Brett, thank you very much!! I like the idea of getting linked into emails for MLS listings, check out the counties and work on getting a positive cash flow regards less of the property type.