I am new to BP and real estate investing. I am interested in house hacking a multifamily property in the Northern New Jersey area such as Union City, Jersey City, Weehawken etc. Does anyone have any information on typical cap rates, cash on cash return and ROI in these areas?
Hey! Welcome to BP. I don't know anything at all about NJ, but my husband and I are house hacking and love living for free. Probably not possible in NJ, but in Indianapolis house hacking is fantastic! Let me know if you have general questions that I can answer...
@George Gonzalez welcome to BP!
House hacking is an awesome way to get into RE investing.
House hacking is limited to the 1-4 units properties (1 is really just buying a house for yourself and 5+ is considered commercial)so cap rates are not really part of the equation.
All you really have to do is look on the market for 2-4 units properties and tun them through the bigger pockets calculator. If they make money w/o you in it, go for it (you don't plan on living there forever do you).
Just keep in mind, House hacking is a great way to start with low down payment but is also a situation where you are leveraged to the teeth so proper management, maintenance and budgeting is going to be crucial for your success!
@George Gonzalez I am also curious as well. I would like to house hack a 4 unit building via an FHA loan. I just need to know if it is feasible, will it work on commercial real estate with 4 units on it, and will they factor in my student loan debt? So if anyone has answers for you hopefully they have answers for me because I want to get started on the whole real estate game.
Welcome @George Gonzalez and good luck to you in your real estate journey!
Welcome @George Gonzalez I am also looking into house hacking anywhere between Union City and Fairview.
I am also looking to house hack in Jersey City as I too agree it is an excellent way to get into real estate investing while saving on mortgage payments! Does anyone who has had experience with house hacking know the best approach to take with respect to obtaining financing, amount needed for down payments, etc?
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