1.35M Net Worth, 200K+ Social Following, No Real Estate Yet — What's My Best Move?

Question

Hey BP community,

33 years old, recently laid off from my corporate job and currently living on severance. Built roughly $1.3M in net worth over 11 years through index fund investing and a long-running side business. Zero debt.

Outside of my investment portfolio I have a 179K following meme and lifestyle page, an email newsletter, and digital products that I am actively working to monetize but are not yet generating consistent income.

No W-2 going forward, which means conventional mortgage qualifying is off the table for now.

My goal is to house hack a 2 to 4 unit property in North Jersey within the next 2 to 4 years. I am looking at asset-depletion mortgages and DSCR loans as my primary financing paths.

A few things I am trying to figure out:

Is North Jersey still worth it given taxes and entry costs, or should I be looking elsewhere?

What should I be doing right now in the transactional phase before I am ready to buy?

Anyone have experience with asset-depletion or non-QM lenders for owner-occupied 2 to 4 units?

Open to all perspectives. Drop your thoughts below.

Travis Timmons · Answer

Stabilize your income/job situation before buying a property.

1. You need to invest from a position of financial strength

2. Real estate does not pay you at all in the first couple of years (unless you pay cash) and typically does not pay you well if you need the money. It's like the house knows you need the income so the furnace goes out.

Outside of that, just make sure that you are thinking long term. Leverage + appreciation of rents and value is what makes real estate worth the hassle and better than the alternatives. Buy the asset you want to own the most 10 years from now that falls within your realistic budget. The 2-4 unit house hack is great bc you can get in for 3.5-5% down. That likely will not be an option without an W2 income or track record on outside/self employed income since non QM products are going to require a higher down payment. Model out paying rent + average index fund returns vs. whatever investment you choose to pursue.

Nicholas L. · Answer

@Mario Gonzalez

i think i said this in another thread, but i'll say it again.  i am trying to help you.  ready?

almost nothing cash flows right now.  (I want to say "nothing," but then someone will chime in and say "I have a top performing STR that cash flows!"  yep, and LeBron James made the NBA while thousands of others didn't. how many people have top performing STRs on their first investment?

see what @Travis Timmons said.  NOTHING in the first few years.

so if you're after cash flow, you're better off investing in something else.

hope this helps

Natalie Schanne · Answer

@Mario Gonzalez - I agree with most of the advice above. If you score another w2 (or 1099) you’ll be able to qualify for a 3.5-5% down loan when you’re buying your 2-4 unit house back. I started with a house hack and then bought another property and another property. If you have a fancy corporate pedigree, getting another job should be trivial, at whatever amount, and you can buy your property quickly whether you choose to keep the job more than 3-6 months or not.

What hasn’t been mentioned is hustling hard with all the tricks and tactics (like wholesalers would use) to get a seller financing offer. There are some opportunities to buy 2-10 units on seller financing, stabilize / improve the units and keep going. For 2-4 units, they’ll be posted on Zillow, garden state mls. Get with a realtor who has both multifamily and commercial experience. For 5-20+ units, there is CREXI and LOOPNET (Costar). Some, not all, and more especially off market,  owners are in a position where they can take payments over time for the property in lieu of all the cash at closing (when you get a mortgage or pay all cash). It is more likely that their property will be “overpriced” but factoring in financing it may be just right. Current interest rates are anywhere 6.5-7.5% for mortgage loans and 10-15% for hard money (do not recommend for your first purchase, interest will eat you alive quickly).

New Jersey is a very interesting place. We have a lot of high paying jobs and running a place as a mid term furnished rental can yield you a lot higher income than the “stabilized” long term rentals. There’s a property in Cherry hill nj that struggled to get a long term tenant offer at $2500/mo (market rate is closer to $2000/mo) but easily rents for $4000/mo furnished including about $300/mo of utilities. Together with all the units the numbers were: buy for $350k invest $50k, rent for $7000/mo mid term with like $600/mo expenses plus mortgage/financing costs

Samuel Diouf · Answer

Hey Mario, if you already have a solid net worth and consistent income, I'd focus on buying high-quality properties in nicer areas that you can just sit on. I wouldn't focus too heavily on the cash-flow as long as the property can somewhat sustain itself.

The exact market you invest in, should be based on economic factors, current and future laws around real estate in the markets you're looking at, and areas where you can find an advantage that others wouldn't have.

Adam S. · Answer

It really depends on where in North Jersey you're looking. Personally, I'd be a little cautious about Hudson and Essex Counties when it comes to potential tenant headaches. Bergen, Union, Morris, and Passaic Counties have generally been solid options.

One of the nice things about North Jersey is that it tends to ride out financial storms better than many other areas. Being close to NYC and having strong school systems helps keep demand relatively steady.

One other tip: when you move forward with this plan, don't advertise that you're the owner living in the building. Be "just another renter" as far as everyone knows. Otherwise, you'll quickly become the unofficial 24/7 concierge, maintenance department, complaint desk, and neighborhood therapist.

You can set up an Apartments.com account under your LLC's name and handle communications through a separate phone number, email address, or support ticket system. Keeping things professional and creating a little separation makes life much easier—and helps ensure that a leaky faucet at 10 PM doesn't somehow turn into a discussion about someone's cousin needing a parking spot.

Troy DeLong · Answer

@Mario GonzalezI would say first plan of action is to get your INCOME under control. $1.35million 'Net Worth' is great for such a young age! But, unless any of that is liquid cash, it'll be hard for any of that to work for you (unless you find a lender willing to collateralize that and fund most/all of a RE transaction). The '179k social media followers' is also irrelevant to what you're looking to do. And finally, your comment about "living on severance" is just another reason to get income under control first.

If your main RE goal is to house-hack a 2-4 unit in 2-4 years then I would simply advise that you get income flowing into your bank account now. If you get a new W2 job, you can go with an awesome 5% down, conventional loan. If you get a 1099 gig, then you'll probably have to go with a DSCR loan (awesome product, just a little more expensive than conventional loans). I do not have personal experience with asset based lenders or non-QM lenders when it comes to your situation.

What you can also do RIGHT NOW is join a couple of local REIA groups to start networking and learning more in-depth from people who are actively investing in your area (Jersey).

To summarize: 1) Get income flowing into your bank account (W2 or 1099)2) Join one or two local REIA groups and NETWORK 3) Get pre-approved with a lender (Conventional preferred. DSCR as backup)4) Start touring properties with an experienced 'Investor Friendly' agent

Joseph Scorese · Answer

Mario,

First off, congratulations. A lot of people focus on the layoff and miss the bigger picture: you're 33, debt-free, sitting on roughly $1.3M net worth, and already built assets outside of your W-2. That's a much stronger position than most first-time multifamily buyers.

As someone investing in New Jersey, I would not write off North Jersey just because of taxes. Yes, property taxes can be painful, but the region still benefits from strong population density, diverse employment centers, and consistent rental demand. The bigger question is whether the numbers work after accounting for taxes, insurance, maintenance, and capital expenditures—not whether taxes are high in isolation.

In your shoes, I'd spend the next couple of years focusing on three things:

Preserve liquidity. Cash becomes your biggest advantage when you're navigating non-QM lending and potentially inconsistent self-employment income.

Build documentable income streams. If you're actively monetizing the newsletter, digital products, and social media audience, start treating those like a business today. Clean bookkeeping, separate accounts, P&Ls, and tax returns will make future financing significantly easier.

Underwrite deals constantly. Even if you're not buying tomorrow, analyze properties every week. By the time you're ready to pull the trigger, you'll know your target neighborhoods, rent ranges, renovation costs, and deal metrics better than most active investors.

Regarding financing, I've seen investors successfully use both asset-depletion and DSCR loans. Asset-depletion can work well when you have substantial liquid assets but limited earned income. DSCR is attractive because the property's cash flow drives qualification, but owner-occupied 2-4 unit scenarios can be more restrictive depending on the lender. I'd start building relationships with several mortgage brokers who specialize in non-QM products now, long before you're ready to buy.

One thing I'd challenge: don't lock yourself into North Jersey if the numbers stop making sense. Run the same analysis against other markets you're willing to live in. Sometimes the best house hack is the one that accelerates your portfolio growth, not necessarily the one closest to where you started.

You're in a position where patience is an asset. Use the next 24-48 months to strengthen your business income, learn your market, and keep your capital flexible. When the right property appears, you'll be ready to move decisively.

1.35M Net Worth, 200K+ Social Following, No Real Estate Yet — What's My Best Move?

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