Newbie from Secaucus, NJ - Trying to House Hack in Northern NJ

Newbie from Secaucus, NJ - Trying to House Hack in Northern NJ

Hudson County, NJ · Member since 2019 · 5 posts · 4 votes

Hello BP,

My name is Greg and I'm new to the BiggerPockets community. I grew up and spent most of my life in Northern New Jersey. I currently work in Clifton as the Creative Director of a small web firm. I discovered BP through a friend about a month ago and have been listening to podcasts, reading the forums, guides, articles, and attending webinars (well, one so far). I've also been reading Chad Carson's Retire Early With Real Estate and am fascinated by the concepts and stories of other real estate investors.

At the beginning of 2016 I took control of my finances and aggressively paid my way out of $25k worth of credit card and student loan debt (huge "thank you" to the Personal Finance subreddit for being a fantastic resource). I began investing in stocks and retirement about two years ago, and now I believe I'm ready to get my feet wet with real estate.

I'm currently in the process of searching for my first property. My goal is to house hack a small multi-family (2–4 units) somewhere in North Jersey. I've been looking at the following markets:

  • Jersey City
  • Union City
  • Lyndhurst
  • Bloomfield
  • Garfield
  • North Arlington
  • Kearny
  • Wallington

I attended the "90 Day Challenge" webinar last Wednesday, and since then I've connected with a real estate agent and have been speaking with a couple of lenders to try and figure out my budget. The options here for multi-families in my price range are limited, but I believe I can make this work if I find a good enough deal.

I'm nervous, but excited about this new venture. I'd love to connect with investors, agents, contractors, lawyers, or anyone else in this wonderful community. I'm open to hearing any advice you'll give me. I'm already so grateful for what I've learned here, and I'm looking forward to meeting people and learning more.

Best,

Greg

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Darren SagerPro Member
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
7y

@Greg De Sciscio welcome to BiggerPockets.  I started more than 20 years ago with a house hack in Maplewood.  The long term effects of purchasing that property still have broad effects on my life today (still own it).   As for finding any "good deals" I personally don't think that many exist right now.  I think that there are opportunities and you need to weed thru those to find the one that you can turn into something worthwhile.  Northern NJ's supply overall of homes is low and is anticipated to keep getting lower because demand is there, and the amount of homes on the market is limited.  The economics of this is for another post, however for you and everyone else.  

Try to find people who you can work with that will bring you value after you do your first transaction.  Most realtors, attorneys, contractors, etc.  aren't investors themselves so best you try to find those who actually have direct experience in what you're trying to do.  It'll make the biggest impact for you long term doing so because anyone can help you find a place.  It's everything that takes place after that you'll be dealing with for however long you own that property that you're going to need help with when you start off.  And the majority of the people out there who don't have that experience won't be able to be there for you when you need them to.  

As for the markets you're looking at I would say that some hold better promise than others in my opinion.  It really depends on what you can afford that should dictate where you should be hunting, as well as what type of renters you're trying to appeal to.

See this reply in the discussion

5 Replies

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  • NJ · Member since 2016 · 50 posts · 19 votes
    7y

    Greg,

    Sounds like you're doing great! I'm looking to move into a house hack in Essex/Union county. My fiancé and I currently leave in a duplex in Morris County and rent out the otherside. It's great. Have you been analyzing deals? Northern NJ is difficult to make the numbers work out great, but definitely want to try and find an off-market deal. I'd love to connect and chat sometime. Keep putting the effort in!

    Tyler

  • Darren SagerPro Member
    Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
    7y

    @Greg De Sciscio welcome to BiggerPockets.  I started more than 20 years ago with a house hack in Maplewood.  The long term effects of purchasing that property still have broad effects on my life today (still own it).   As for finding any "good deals" I personally don't think that many exist right now.  I think that there are opportunities and you need to weed thru those to find the one that you can turn into something worthwhile.  Northern NJ's supply overall of homes is low and is anticipated to keep getting lower because demand is there, and the amount of homes on the market is limited.  The economics of this is for another post, however for you and everyone else.  

    Try to find people who you can work with that will bring you value after you do your first transaction.  Most realtors, attorneys, contractors, etc.  aren't investors themselves so best you try to find those who actually have direct experience in what you're trying to do.  It'll make the biggest impact for you long term doing so because anyone can help you find a place.  It's everything that takes place after that you'll be dealing with for however long you own that property that you're going to need help with when you start off.  And the majority of the people out there who don't have that experience won't be able to be there for you when you need them to.  

    As for the markets you're looking at I would say that some hold better promise than others in my opinion.  It really depends on what you can afford that should dictate where you should be hunting, as well as what type of renters you're trying to appeal to.

  • Hudson County, NJ · Member since 2019 · 5 posts · 4 votes
    7y

    Hi @Tyler Drapeau! Yes, I've analyzed six properties so far using dealcheck.io but I'm still learning how to properly use the calculator. If I'm importing from the MLS directly into the calculator, can I assume that local market info (e.g. Property Tax) is accounted for accurately, or is this something I should be verifying and plugging in manually?

    My real estate agent claims she can help find off-market deals, but are there other avenues I should be exploring to find these deals? REI groups, perhaps?

    Congrats on your house hack in Morris County and best of luck on your next deal. Would love to connect and chat! I'll send you a DM. Thanks for the advice!

    Thank you, @Darren Sager. It's inspiring to hear about your first house hack 20 years ago and how it's still effecting your life today (in a good way, I assume). I am starting to realize that "good deals" are hard to come by around here, but I'm hoping to find one that's "good enough" for an entry point. I don't expect to be able to completely eliminate my housing cost, but if I can keep my month-to-month out of pocket expenses under $1k I will be happy.

    As for the markets I'm looking into, would you be willing to elaborate on which ones you believe to be more promising? I don't know if spouting out the specifics on what I can afford is considered bad etiquette, but I'm happy to share my info. As far as what type of renters I'm trying to attract, I suppose I'm aiming for responsible, middle-class families or individuals. I'm not very interested in high crime neighborhoods (Newark, Greenville, etc.) or "deadbeat" tenants. Not for my first house hack, anyway. Thank you again for your advice.

  • NJ · Member since 2016 · 50 posts · 19 votes
    7y

    @Greg De Sciscio Couldn't hurt to double check the taxes at the site below. 

    https://tre-dotnet.state.nj.us/TYTR_TLSPS/TaxListS...

    As far as off market deals, I think REI groups and a direct mailing campaign might be the best ways. That is what my fiancé and I are going to try.

    Hope this helps!

  • Hudson County, NJ · Member since 2019 · 5 posts · 4 votes
    7y

    @Tyler Drapeau Thank you for the link, that form is very helpful!

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