First Time investor/homeowner looking for the wisest path

First Time investor/homeowner looking for the wisest path

Member since 2024 · 4 posts · 3 votes

Hello my names Abdul Zaman, I’m a Civil Engineer that works in NYC (within the 5 boroughs) I am soon to move out of my families house and to get my own place with my wife (soon to be).. I am aware nyc is a very tough and expensive market to get into which is why my mind is pretty set on moving to New Jersey, somewhere close to nyc so I can travel (as long as it’s 1hr) away from Staten Island or Manhattan or Bronx from the soon to be house/investment. I have been researching up on multi family-house hacking, multifamily-new construction and or buying land or an investment and live in an apartment (via rent). I personally want to invest in real estate and gain enough properties that I can quit my w2 career and focus on family, life and passive income. I hope someone can advice me on how to start and where to start, I believe I make a decent income (six figure, which maybe doesn’t mean much these days), have above 700 credit score and don’t have any debt and can gather up to 70-90k in down payment. Which is the best route to take? Knowing that it’ll soon be just me (as the only income in the household) and my wife a young couple looking to build generational wealth. I hope someone can guide me, im aware in the first few years maybe we’ll have to sacrifice alittle on the living situation which we don’t mind at all as long as it’s a great investment in the long run and can lead to more.

Thank you so much,

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Rick BorgoBusiness Member
Lender · NJ · Member since 2021 · 54 posts · 18 votes
2y

Abdul, congrats on positioning yourself in a way that allows you to seek financial freedom through real estate investing. I think everything you mentioned is well thought out and makes sense. The first steps for you would be to contact a mortgage broker, like myself, to provide you with a pre-approval. The pre-approval letter will tell you how much the bank is willing to lend to you. Once you have that letter in hand, you would then want to contact a real estate agent to help you find a property that fits your family needs. 

I always like to provide the NJ Transit Real Map for those in your situation as I believe these towns will always have high demand for rent, which is what you plan to do with your initial investment.

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Abdul Zaman

    House-hacking a multifamily in New Jersey can reduce housing expenses by renting out units while living in one. Alternatively, value-add properties can be built quickly and rented out at market rates, yielding higher returns. Renting personally while investing separately can be a viable option. To build long-term wealth, start with house-hacking, transition to larger properties, and expand knowledge of real estate, taxes, and investing. Join local REIAs and seek market mentors for guidance.

    Good luck!

  • Rick BorgoBusiness Member
    Lender · NJ · Member since 2021 · 54 posts · 18 votes
    2y

    Abdul, congrats on positioning yourself in a way that allows you to seek financial freedom through real estate investing. I think everything you mentioned is well thought out and makes sense. The first steps for you would be to contact a mortgage broker, like myself, to provide you with a pre-approval. The pre-approval letter will tell you how much the bank is willing to lend to you. Once you have that letter in hand, you would then want to contact a real estate agent to help you find a property that fits your family needs. 

    I always like to provide the NJ Transit Real Map for those in your situation as I believe these towns will always have high demand for rent, which is what you plan to do with your initial investment.

    Anywhere Lending562 Reviews
  • Noah WrightBusiness Member
    USA, Nationwide · Member since 2024 · 174 posts · 90 votes
    2y

    How do you eat an elephant? One bite at a time... 

    The "fast lane" is to look at fixer-uppers, upgrading a distressed property is going to multiply your return on investment quickly. More risk and work involved. If you have the time and energy to do the renovations, and want to "sprint" to financial freedom, go that route.

    The "slow lane" is to look for immediate cashflow properties, less risk and less work involved. If you are thin on time and looking for more passive income, go that route.

    I think this is the first decision you need to make. Both options have pros and cons.

  • Rental Property Investor · Member since 2019 · 411 posts · 148 votes
    2y
    Quote from @Abdul Zaman:

    Hello my names Abdul Zaman, I’m a Civil Engineer that works in NYC (within the 5 boroughs) I am soon to move out of my families house and to get my own place with my wife (soon to be).. I am aware nyc is a very tough and expensive market to get into which is why my mind is pretty set on moving to New Jersey, somewhere close to nyc so I can travel (as long as it’s 1hr) away from Staten Island or Manhattan or Bronx from the soon to be house/investment. I have been researching up on multi family-house hacking, multifamily-new construction and or buying land or an investment and live in an apartment (via rent). I personally want to invest in real estate and gain enough properties that I can quit my w2 career and focus on family, life and passive income. I hope someone can advice me on how to start and where to start, I believe I make a decent income (six figure, which maybe doesn’t mean much these days), have above 700 credit score and don’t have any debt and can gather up to 70-90k in down payment. Which is the best route to take? Knowing that it’ll soon be just me (as the only income in the household) and my wife a young couple looking to build generational wealth. I hope someone can guide me, im aware in the first few years maybe we’ll have to sacrifice alittle on the living situation which we don’t mind at all as long as it’s a great investment in the long run and can lead to more.

    Thank you so much,


     House hacking will be your best bet to get started. Please set expectations accordingly as you won't be "cashflowing" right out of the gate. This is a long term play, but the best place to get started to reduce your living expenses, begin the wealth building journey, and get used to working with tenants. 

    Sincerely, experienced Landlord, investor and agent in the NJ area. 

  • Realtor · NJ · Member since 2024 · 19 posts · 4 votes
    2y

    Hi Abdul! Our company helps a ton of investors similar to yourself - I'd definitely recommend buying a multifamily, living in one unit, and renting out the other to get started. We manage a ton of properties around Middlesex and Union county, there are some great areas around central NJ with direct trains into Manhattan that are more budget-friendly than up north and that are great rental markets. If you find something that you can fix up and push the rents higher, that's even better. I'd be happy to help you look for something or provide rental comps for the areas you're interested in! 

  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    2y

    Hi @Abdul Zaman welcome to BP.  You sound a bit like me when I first started out.  I new i wanted to invest did not know exactly which direction to go but I need proximity to NYC for project management job. fast forward less than a decade later my wife and I are financial free leveraging house hacking strategies in new jersey.  

    House hacking is hands down one of the fastest ways to grow wealth, especially in an expensive market like the greater NYC area. Down payment with as little as 5% down will allow access to conventional loans meaning 70-90k in liquid cash will be a very good starting point for you. Best part of loans like the one I am mentioning is they do NOT come with PMI. House Hacking is hands down the most unfair advantage for new investors entering todays market in NJ.

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  • Member since 2024 · 4 posts · 3 votes
    2y

    Hi Shawn I appreciate your reply. Yes after reading the replies I believe house hacking is the best possible route. I’d love to be in the position you and your wife are in now, so to hear that you started to a similar situation as me gives me the proper motivation so thank you!!

  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    2y

    @Abdul Zaman happy to connect and share more about house hacking in North Jersey.  All the best

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