Looking for Advice: Elizabeth NJ Triplex/Quadplex Purchase — Should I Move In or Rent

[Charles Lundquist]

Hey BP,

I’m in the process of buying my first multifamily (triplex or quadplex) in Elizabeth, NJ. I wanted to get some feedback from experienced investors on my plan and decision points.

Why Elizabeth NJ?

• Strong market with both cash flow and appreciation potential.

• Prices are still lower than many NYC suburbs but with a lot of development happening.

• Solid tenant base, good rental demand.

• Lower entry price point allows me to buy a larger property (3–4 units) that will scale better over time.

Current Situation:

• I own a co-op in the Bronx. My mortgage + HOA is very affordable, and I could rent it out for 3 years before I'd be required to either move back in or sell (per co-op rules).

• If I rent it out, I’d generate some positive cash flow and could sell later for a solid profit to reinvest into future deals.

The Question: Stay or Move?

• Option 1: Stay in my Bronx co-op. Simpler commute (Elizabeth adds tolls + longer drive), but I wouldn't be living onsite at my first multi.

• Option 2: Move into the new Elizabeth property. This allows me to:

  • House hack my first deal

  • Be physically present to manage the rehab and tenants

  • Learn firsthand while minimizing mistakes on the first project

Financials:

• I’ve got $60K–$100K ready for down payment, rehab, and reserves.

• FHA or low down payment financing options on the table.

The big question for BP:

• How valuable do you think it is to be living onsite for the first deal?

• Would you house hack the Elizabeth property or stay in the co-op and rent it out?

Appreciate any thoughts, experience, or gut reactions. Trying to set up a strong foundation for scaling.

Thanks!

[Vaughn Smith]

More bad advice. What has happened to BP? 

@Charles Lundquist when it comes to towns like Elizabeth, Newark etc you have to REALLY get the lay of the land. In those towns it's not just about numbers and analytics ESPECIALLY if you want to live there. 

No one asked about you and how risk averse you are or if you're comfortable in C-/D neighborhoods. 

Owner occupying there is very different than absentee ownership, even if the tenants don't know you're the landlord it may not be easy. Elizabeth has problems with gangs, but also logistical problems as getting around can be a nightmare. 

Rethink it spend some time there get to know the city (dont ask a realtor) and then figure out what's best for you. Also the numbers on Elizabeth properties are typically horrible if you're buying retail + you have to be careful running you numbers if the property is less than 10 years old as the taxes may be abated and will soon adjust upwards considerably