I am trying to get started in real estate investing in the next several months. I live in Central Jersey and am currently finishing up my schooling to become an RN with my BSN. I want to house hack in Central Jersey, preferably in Mercer County or Middlesex County. I want to get a multi-unit property and live in one unit and rent out the other units. I have an excellent credit score with no debt and am currently saving up money, which will increase once I start working as a nurse soon. I want to know if it is worth it to start house hacking in this area. Any help/advice would be greatly appreciated. Thanks.
I'd say if you're young and relatively unattached, house hacking is great in any area. My first investment was a 4-unit I bought using FHA financing (3.5% down) in the Los Angeles area. While my friends were paying through the nose for L.A. rent, I was living for free, generating cash flow, and building equity in a property.
I totally agree with @Logan Allec . I am in Los Angeles and housing out here is just plain crazy so I feel like house hacking makes sense anywhere. Luckily we get to live rent free (now, now, don't hate:) because our in laws had to relocate to Seoul and they have a house in LA but if that wasn't the case, I would definitely be going the FHA financing route. Not only do you get to save money, make money, build equity but you also learn the ins and outs of managing rentals in a relatively low risk fashion.
@Evan Gross I just bought my first house hack in Coastal California using FHA (3.5%) down. We barely squeaked into this market as first time home buyers, but to also nab a rental still feels like a coup. Now would I buy my next rental in Coastal CA... probably not. If Central Jersey is anything like CA and you have to purchase your primary residence there, why not house hack? At the very least you will have front row seats to landlording not to mention your tenants paying your primary mortgage :)
Thank you all for your advice and encouragement. Just like California, New Jersey is very expensive compared to other parts of the country, and I believe we have the highest property taxes in the nation. It's great to hear that you guys were able to house hack in an expensive California and still be successful, and I will look into the FHA financing for a house hack in New Jersey. Thanks!
Hi @Evan Gross,
Welcome to BP!
House Hacking in any state but specifically New Jersey, locations are crucial to desirable renters and good rents based on a few fundamentals. Next time near the Trenton Train Station grab the NJ Transit Directories for Train stops (Central Jersey - Covering Mercer & Middlesex Counties). Identify some of the main stops compared to the smaller stops based on purchase price point (what you can pre-qualify for) neighborhoods and schools. The rents are stronger within a mile of the stop (walk, bike & driving distance) This would be an excellent way to back into FHA & Conventional options for your first House Hacking purchase.
Let me know if you have any questions.
Thanks for your information and sorry I’m late, my notifications were off. I will look into that, thanks. I’m thinking of first getting an apartment while looking for an investment property.
Originally posted by @Scott Weaner :
@Evan Gross, have you joined SJREIA yet? If not, you will get a wealth of knowledge and education by joining or at least going to the meetings.
I was looking into it but was unsure which meeting to first attend, or if I should just attend any type of meeting. I noticed there are a variety of different types of real estate investing meetings they offer. I will look into it, thanks.
Originally posted by @Marsha Gordon :
@Evan Gross, I agree with @Scott Weaner . The SJREIA meetings in Central NJ are a great resource. I'm an investor and real estate agent in the Central NJ area. I'm open to speaking with you about some options. Feel free to PM me.
Thank you for your help. I sent you a message on here. Thanks.
@Evan Gross , start with one of the main meetings.
Ok thanks Scott!
@Scott Weaner , do you recommend any good groups in the Bucks Cty area for a beginner? I'm also in Yardley & looking for a group to gain knowledge & network. Thanks!
Originally posted by @Chris Stoeckel :
@Scott Weaner, do you recommend any good groups in the Bucks Cty area for a beginner? I'm also in Yardley & looking for a group to gain knowledge & network. Thanks!
I would still suggest SJREIA!
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