First Purchase - House Hack - South Jersey

9 Replies

Hi BP family!  I am looking for a little bit of advice here, hopefully some of you can help me out.

I am looking for my first property in the south jersey area (I'm from Marlton, work in Mt. Laurel).  I have began looking around and there are a ton of options out there, but I want to see what you all think about the following topics.  Being that I'm pre-approved up to $185k, I'm looking at opportunities with 2+ beds, 2+ full baths, and I am open to anything as far as multi-family (hard to come by), single family, or condos.

For anyone who has started their RE journey in south jersey, I'm looking for some "do's and don'ts"  This can be based on investing in a turn-key / rehab for a house hack, good or bad towns, mutli vs single, whatever it may be.  Really more than anything I'd just like to hear your stories. Thanks everyone!

-Tyler

Hey @Tyler Martin in your position I would look for something that you can AirBnB and expand your search out a bit.  I nudged my wife into Fishtown years ago even though she knew it wouldn't be a long term thing and it has worked out incredibly. Then we focused on AC looking to maximise the limited amount of funds we had.

I would stay away from rehabs

Hey Tyler
That’s awesome to hear. I’m on a similar journey as you are. I haven’t come across any decent multi family homes in the areas I was looking for. There are a few in Blackwood and Sicklerville. Mainly, you’ll come across them in areas where you may not want to even live.
Thanks and keep us posted!

Hey Tyler, i have been investing in the SJ area since 2013, specifically in your area. I have done deals in Burlington, Gloucester, and Camden Counties so i could definitely help you out! I do home inspections all over South Jersey as well, so i am pretty familiar with a lot of towns. To answer your question, the most financially rewarding situation would be to buy a duplex that needs work, this is like BRRRR method combined with a house hack. The more work it needs, the more equity you should have off the bat after the rehab is complete, if you buy for the right price of course. Example - you find a duplex for $125k, rehab it for $25k, and by forced appreciation (rehab/updates) your increase the value to $175k-$200k. You would have around $25k-$50k worth of equity right form the jump. (Which you can leverage for the next deal!!) Then you rent one unit and live in the other. Depending on the location and rental income you would probably cover more than half of your monthly PITI payments. It really all depends on how comfortable you are with buying a distressed property and managing the rehab. I have a decent amount of flip experience so i personally would never buy anything turn key. Feel free to message me as well and we can exchange info. I am planning on setting up BP meet ups in the South Jersey area after the new year.

cc: @Morshad Saami Hossain

Originally posted by @Justin Eaton :

Hey Tyler, i have been investing in the SJ area since 2013, specifically in your area. I have done deals in Burlington, Gloucester, and Camden Counties so i could definitely help you out! I do home inspections all over South Jersey as well, so i am pretty familiar with a lot of towns. To answer your question, the most financially rewarding situation would be to buy a duplex that needs work, this is like BRRRR method combined with a house hack. The more work it needs, the more equity you should have off the bat after the rehab is complete, if you buy for the right price of course. Example - you find a duplex for $125k, rehab it for $25k, and by forced appreciation (rehab/updates) your increase the value to $175k-$200k. You would have around $25k-$50k worth of equity right form the jump. (Which you can leverage for the next deal!!) Then you rent one unit and live in the other. Depending on the location and rental income you would probably cover more than half of your monthly PITI payments. It really all depends on how comfortable you are with buying a distressed property and managing the rehab. I have a decent amount of flip experience so i personally would never buy anything turn key. Feel free to message me as well and we can exchange info. I am planning on setting up BP meet ups in the South Jersey area after the new year.

cc: @Morshad Saami Hossain

 Justin got my vote! MFH all the way, 2-4 units are easy to finance as owner occupant and once you've hacked it for a couple years you can keep it and move on. A single family in most areas in SNJ won't cash flow well, if at all, after you move out and stop having roommates.

Hi @Tyler Martin, you may actually qualify for more than 185k if you are looking at multifamily. The bank can take into account future rental for the other units. I believe 75% of the rent. Maybe check back with your lender so you can increase your search.  

Hi @tyler 

Lots of great recommendations mentioned above for you. @tanee makes a good point about being qualified for a larger amount based on multifamily. The first time I went for a multifamily, I was excited that I got approved for a Triplex. I was able to prove that the rental income that i was seeking is stable, which represents as another source of income aside from your main job. I recommend to continue to run the numbers of a potential rental property in your specified area, and figuring out any renovation work. Keep a track of your analysis, you may find a property that matches a previous property analysis and can narrow down your decision from that historical data.

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