Looking for Advice: Elizabeth NJ Triplex/Quadplex Purchase

Charles Lundquist · 2025-06-01T10:52:43-07:00

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!

Alison Smith

Investor · Chelsea, MA · Member since 2017 · 4 posts · 3 votes

1y

Hiya

So ... I bought my first 3-family when I sold my condo in Brighton, MA. Bought in Chelsea, MA (it's now a Sanctuary City ... don't even get me started). Didn't move into it. Bought it fully rented, albeit below market. Didn't start renovations till I had my first vacancy. As a former Hobokenite (early days before Hoboken upscaled), I will tell you that Elizabeth is a darned site nicer than Chelsea, so I am not sure you need to personally be on-site to make sure your tenants "go smoothly". I lucked out and found a local guy who owned a laundromat in Chelsea, who had also invested in Chelsea, to "manage" the property for me (collect the rent, show up for emergencies) for 5%. Not an "official" property manager, but a good guy who happened to run a local biz and wanted some other stuff to keep himself busy, and who knew all the inspectional services people (key point - you want an insider). You might look for someone like this .. see if you can get hooked up with a super-local resource. Check with a local realtor. Maybe one that handles rentals. That way, you don't have to vacate your coop in the Bronx to be present to feel comfortable.

Of course, you might want the Elizabeth experience ... I lived in one of my Chelsea units for 6 months a couple years ago while we were re-doing it. Put the fear of god into my tenants LOLOLOLOL. No .. JK. They love me.

Listen, either plan sounds good. The thing that can really weigh on you is a stressful, crappy commute to a day job, so IMHO, that's the most important factor in this decision process, regardless of the financial end of things. A long commute can suck all the enthusiasm for side gigs right out of you, and you'll need that energy and enthusiasm for this project.

My 2 cents from an old hack who lives in AZ and still has rental properties in Chelsea.

By the way, I love the fact that you are thinking about investing and can't wait to hear where you come out on this decision !

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JooYung Choi

Realtor · NJ · Member since 2023 · 215 posts · 99 votes

1y

To utilize fha or low down payment loans, you would have to move into the property. Otherwise you are looking at 20% conventional. Being physically present to manage the rehab and tenants is helpful but not necessary. As long as you have a great team around you, you should be able to that from wherever you are in the world.

Since you have 60-100K, most likely you will need to househack. You would get to save money on the down payment that you could use towards renovations. Think of it as a 1 year project, so once your property is stable, you can rent out the unit you are living in and go back to the Bronx. Not a bad trade for a triplex / quad in Elizabeth!

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

1y

@Charles Lundquist move into the triplex to self-manage it!

We do NOT recommend telling the tenants you are the owner (tell them you are the PM)!
- No one has EVER been able to prove anything good comes from this. Only potentially bad things can happen when you tell tenants "No" or hold them accountable to their lease.

Being onsite and being able to react to everything will teach you a LOT of valuable lessons. You'll learn tons about property management that will save you from being taken advantage of in the future if you ever want to hire a PMC:)

Highly recommend you track your time spent DIY managing. Most landlords severly under-estimate how much time they invest in their rentals. Then can't understand basic PMC charges when they hire one, because they somehow think "everything takes 10 minutes and only costs $20".

Since you'll be onsite, you may consider experimanting with STR & MTR tenants in one of the units. If it goes well, you can eventually convert all units to this model to increase your cashflow.

You should go into this understanding YOU will live in the worst unit - in an illegal unit in the basement if you can!
- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.

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Charles Lundquist

OP

New to Real Estate · Bronx, NY · Member since 2025 · 18 posts · 10 votes

1y

yeah I was thinking the ideal setup would be a 4plex - live in one, rent one out STR and the other 2 LTR.

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Vaughn Smith

Property Manager · NJ · Member since 2017 · 786 posts · 396 votes

1y

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

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Robert Hill

Realtor · Northern NJ · Member since 2023 · 29 posts · 11 votes

1y

I completely agree with what Vaughn said above regarding Elizabeth, Newark, and similar towns in NJ. They can be a rough environment to not only own rentals but especially live in them. Someone I work with inherited nightmare tenants in Garfield and it took forever to get them out (Cash for keys). The cops were called almost every night because they were almost lighting the house on fire. Also make sure you understand the rent control/rent stabilized rules for each town as they can even change based on the part of the town you are in (Passaic is a good example, there is rent control, but not in the entire town).

Also consider not telling the tenants that you are the owner, and have someone else act as the "property manager". Nevertheless, you can't really go wrong on the appreciation aspect buying in Central/Northern NJ where there is a lot of demand. My buddy bought 7 units in Garfield in 2019 and they have probably appreciated over $500k (Not to mention the cash flow, tax write offs, raising rents, etc.)

One last point is if you can try and buy something off market, you will get a much better deal. Especially in NJ where every multifamily that is listed either gets into a bidding more or is just overpriced like crazy. I've seen multifamily trade in Elizabeth for 4-5% cap rates on market and still have multiple offers. Crazy stuff

Good luck on your investment, I hope everything goes well!

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

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

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