NJ investors — real talk, what's the current strategy out here?

Question

With rates where they are and prices still holding strong in most of the state, it feels like traditional cash flow is nearly impossible to pencil out. So I'm curious:

1. Are you still actively buying (or under contract) right now, or are you sitting on the sidelines waiting for a shift?

2. If you are buying — is it purely an appreciation play, or are you finding pockets where the numbers still work?

3. For those running STRs (Airbnb/VRBO) — is that the only way you're making the math work vs. a long-term tenant?

I'm specifically looking at the duplex/small multifamily space. House hacking is really the only scenario where I see it making sense right now, but curious if people are finding creative structures (DSCR, seller financing, subject-to, etc.) that are changing the calculus.

Drop your market, strategy, and what's working. Let's hear it 👇

Sara Joe · Answer

I think that's a great point about the operational improvement story.

It feels like a lot of investors are having to create value more intentionally today rather than relying on appreciation to do the heavy lifting.

The operators I've seen perform best lately tend to be the ones combining conservative underwriting with strong acquisition and execution processes.

G. Brian Davis · Answer

We're definitely seeing investors take different approaches depending on their goals and market.

As a co-founder of a co-investing club, one thing I've noticed is that fewer investors are willing to rely solely on appreciation today. Most of the opportunities that generate the most interest tend to have some combination of cash flow, value-add potential, tax benefits, or a clear operational improvement story. That doesn't mean cash-flowing deals are easy to find. It usually means investors are becoming more selective and looking harder at assumptions.

I also think house hacking remains one of the more compelling strategies for newer investors because owner-occupied financing can dramatically change the math compared to a traditional investment purchase.The common theme I keep seeing is that investors are underwriting more conservatively than they were a few years ago.

Garrett Crosby · Answer

NJ is a tough market for traditional cash flow right now, and you're asking exactly the right questions.

House hacking is the real answer for most people trying to get into NJ small multifamily right now. Owner-occupied financing drops your effective cost basis significantly, and if you're living in one unit, you're stress-testing the property from the inside anyway. For anyone not house hacking, the deals that actually pencil tend to be value-add situations where you're manufacturing equity rather than buying stabilized cash flow that isn't there.

STR can work in the right NJ submarkets (shore towns especially) but you're also taking on seasonality risk and the regulatory environment is tightening in a lot of municipalities. Worth modeling both scenarios before committing to an STR underwrite on a property that needs to hit those numbers to survive.

On seller financing and sub-to — those deals exist but they require patience and volume of outreach. You're not going to stumble into them on the MLS. If you're serious about creative structures, start building relationships with distressed sellers directly. Feel free to DM if you want to dig into any of this further.

Mario Gonzalez · Answer

The issue right now is that I can't leverage my Holdings and my brokerage account because the rates are too high and let's be honest here the number is right now don't make a lot of sense with the current market and the carrying cost

Sara Joe · Answer

What’s interesting is that a lot of operators seem to be adapting by focusing more on how deals are sourced rather than waiting for market conditions to improve.

In tougher environments, acquisition quality, seller conversations, and off-market opportunities often become more important than trying to force deals that don’t pencil out on the MLS.

Curious how many people here are finding their best opportunities through direct outreach versus traditional channels.

NJ investors — real talk, what's the current strategy out here?

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