Multifamily property Rent hacking in Jersey City vs BRRRR

9 Replies

Hi BP community !!

I am in a bit of a dilemma. Im currently a tenant paying rent towards my landlords mortgage and while this is good passive income for him, it's not so good for me :)

My current Rental numbers:

2bed/1ba ($1350) - sharing with a roommate. My portion of the rent is $675 plus utilities which typically comes to a total of $800 or so. Pretty cheap for the area I'm living in.

I have managed to save up 100k and debating the right approach to investing it.

My end goal is to be a rental property investor using the BRRRR method to eventually create passive rental income however, my confusion as a newbie investor is:

Option 1: Should I target rent hacking which is buying a multifamily 2 unit property in Jersey city hopefully under 500K and rent out one of the units either by rooms or the entire apartment and stay in the other ?

OR

Option 2: Jump right into long distance BRRRR in the greater Phili or greater Baltimore area/dc area

.

@Ahmed Elias , I think that house hacking is one of the best strategies available. The limitation is that it doesn't scale so my advice would be to house hack first and then move on to buying additional units. There is no reason why you can't BRRRR the house hack too. Good luck!

I'd say if you can find markets where you can achieve BRRRR in a way that you are able to pull out all your cash fast and reinvest then that's what you need to go after.
Otherwise option 1 is better than anything else, but keep in mind As Ronan stated, it is a lot slower to scale.

In Hudson county it is very hard to find (still possible tho) a deal that you can BRRR and pull out all of your original investments because the prices are already too high. You can definitely Find deals where you are able to cash out part of your investment.


Originally posted by @Farrukh Madaminov :

I'd say if you can find markets where you can achieve BRRRR in a way that you are able to pull out all your cash fast and reinvest then that's what you need to go after.
Otherwise option 1 is better than anything else, but keep in mind As Ronan stated, it is a lot slower to scale.

In Hudson county it is very hard to find (still possible tho) a deal that you can BRRR and pull out all of your original investments because the prices are already too high. You can definitely Find deals where you are able to cash out part of your investment.

What about deals where a multi-family househack would cover the entire mortgage? I have had trouble finding areas in NJ where this is doable. 

@Nolan B. in fact there are still Jersey City neighborhoods where you can achieve house hacking that covers your mortgage, and generate a little cash on top. There had been a lot of good posts on this topic. Check out this thread for neighborhood tips in JC:

https://www.biggerpockets.com/...

I helped a friend to acquire his own deal in Bergen-Lafayette recently. Check out this thread for numbers and details:

https://www.biggerpockets.com/...

Hope that helps!

@Ahmed Elias you’re welcome!

And, yes, great idea attending events and meetups. There’s one that I regularly attend hosted by @Alina Trigub  

She brings great speakers to the events and the topics are on point. This one is coming up soon in February that takes place in NJ  

https://www.biggerpockets.com/...

The next one is in NYC in March:

https://www.biggerpockets.com/...

I’m also attending this one this week Wednesday:

http://meetu.ps/e/HwKxH/LsDm2/...

You can also search for other meetups on the “Events” page here:

https://www.biggerpockets.com/...
(make sure to scroll down to the bottom of the page and set your filters to see events near you)

Maybe I’ll see you at one of these meetups!


@Ahmed Elias

Hey Ahmed, I'm in the same boat as you. I'm also a newbie. I've been looking for over year, unsuccessfully, to find a way to househack a multi family through BRRR in Hudson County.

As others have mentioned, the numbers are too high. I was using a realtor at first because it seemed like they really didn't have me in mind when they were sending me generic properties that didn't fit my criteria. Last 6 months I've started sending mailers like wholesalers do. I've spent close to $6k on this and have nothing to show for it. I'm hoping to find someone looking to sell off market. I hear it's the best way to get a value on your deals. We (partner and I) have switched our focus from house hacking a multi family to house hacking a single family. Some cash flow is better than zero cash flow.

Anyways that's what I've been dealing with and I hope you have better luck. Feel free to reach out to me to learn what else I've done that hasn't been working for me. hudson county is doable, just difficult. Just because I haven't had luck doesn't mean you won't either. I've been doing it for a year and I don't plan on giving up.