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Updated almost 5 years ago on . Most recent reply

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Mark N.
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First-time House Hacking in North Jersey

Mark N.
Posted

My wife and I are looking to purchase our first home in North Jersey. We’re mostly interested in the following:

-15-30-min-drive to Montclair (where my wife works) 
-No more than 1hr 15 minutes to Manhattan by public transportation.
-Multifamily (2-4 units, owner-occupied obviously) 
-FHA loan, possibly 203K
-Move-in March 2022 (stretch goal: March 2021)


    We have $35k saved so far. By February 2021 we should have around $65k. February 2022 anywhere from $110k to $130k.

    Questions:

    -What areas do you recommend looking for?
    -Would it be better to close February 2021 or February 2022 considering our estimated savings?
    -Should we look for financing options other than FHA loan?

    Most Popular Reply

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    Jonathan Greene
    #5 Starting Out Contributor
    • Real Estate Consultant
    • Mendham, NJ
    7,603
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    Jonathan Greene
    #5 Starting Out Contributor
    • Real Estate Consultant
    • Mendham, NJ
    Replied

    It depends what your expected price point is. A lot of people think they can do this for 300k, but that's not even close with the current spasm for multi-family properties in this market. Biting off a four-family is unwise for a first-timer and also cost-prohibitive for most. Most multi-family properties in the area are selling WAY above asking with anywhere between 10-30 offers on each one unless they need a TON of work and those will get multiple offers by local investors.

    Part of your choice when house hacking as a couple is a compromise on things you mentioned: commute, comfort. If it's just you and your wife and you want to maximize what you get out of it, your best bet would be to look for an uneven multi which is one that has a small (or smaller) unit and a big (or bigger) unit so you can live in a 1 BR unit and pull rent on a 3 BR unit. If you value more space, then even units will do fine.

    I would not rule out West Orange as well. There are deals there, the downtown is really coming along, and bus access to NYC is outstanding. We do off-market and on-market in the area and I can tell that even off-market multis are overvalued right now. You are doing the right thing by planning in advance. DM with any questions at all.

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