203k Loan and House Hack NY vs NJ - Newbie Investor

7 Replies

Hi 

I am a new investor to be. My husband and I are planning to hopefully close on a Multifamily home in the outskirts of NYC or in New Jersey in 2021 (whichever makes more sense economically). We are targeting deals that will qualify for a 203k FHA loan and will also be house hacking in the property for the first 2-3 years. We then plan to move out and do the process all over again. We are planning to get pre-qualified early in 2020.

Any advice would be appreciated. I would also like to start connecting with anyone who is willing to help us along in this journey (Real Estate Agents, Property Managers, Contractors, etc)

Please be kind and thank you in advance.

Originally posted by @Darling M. :

Hi 

I am a new investor to be. My husband and I are planning to hopefully close on a Multifamily home in the outskirts of NYC or in New Jersey in 2021 (whichever makes more sense economically). We are targeting deals that will qualify for a 203k FHA loan and will also be house hacking in the property for the first 2-3 years. We then plan to move out and do the process all over again. We are planning to get pre-qualified early in 2020.

Any advice would be appreciated. I would also like to start connecting with anyone who is willing to help us along in this journey (Real Estate Agents, Property Managers, Contractors, etc)

Please be kind and thank you in advance.

Hello Darling, 

I think your plan to house-hack a property is solid!

I recommend speaking with a lender who has a clear understanding of your short-term and long-term goals. They would be able to not only pre-approve you for financing, but they'd also be able to advise you on the 203K loan as well.

Once the financing is set, you and your husband will have a clearer understanding on what markets to target. You might have multiple options in New York and New Jersey so searching online can help you narrow down your focus. As you get set on a location, you can find a Realtor to help you navigate that market. 

Lastly, a solid realtor and/or lender can help you find a good RE attorney, home inspector, contractor, PM, etc. 

Best of luck to you moving forward!

Abel 

NJ is probably going to be much cheaper as a whole than most comparable buildings in NYC. So its probably cheaper to start in NJ. The only major drawbacks is that most cities near NYC in NJ have high property taxes and if it's close to a bridge or tunnel it's also probably pricey. that being said rents are high in both of those areas. Even if you move further west and south in NJ rents are still relatively strong and the prices are decent. 

@George W. Thank you George, We are leaning more towards Jersey. Further south but close to public transportation. Been looking into which towns may work out better. We’ve compiled a list but now doing research to test out which one will work out better. As of right now the overall list consist of the below.

Bergen - Lafayette

North Bergen

Union City

Montclair

Bayonne, NJ

Elizabeth

Dover

Greenville

Hudson County

Trying to dwindle this down to at least 4 or 5 that I would dig deeper into?

@Darling M. . What I did was take a map of the railway/bus lines and did my research from there. 5 of those areas you listed were on my list, however, when I began bidding on homes I soon found out how much money people are willing to buy small multi-families way above asking price.  It was a bit discouraging but I trekked on and found a reasonable spot 40 minutes by car to GWB and 50 minutes to grand central by rail. 
Good luck. 

Also in the Bronx when we sold our place in Riverdale we used MODA realty in Riverdale. The owner is super knowledgeable about the Bronx, a west Chester, and Manhattan. He had a lot of multi families on his listing at one point.