Investing & Househacking in Northern New Jersey

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Investing & Househacking in Northern New Jersey

Stefanie R.
Member since 2019 · 11 posts · 0 votes

Hi everyone,

Right now, I am interested in purchasing investment property in northern New Jersey and was wondering if I could get a bit more insight.

About me:

33f currently living in lower Westchester County.

Work remotely but will commute to job in Manhattan 2-3 days a week

What I’m looking for:

Multifamily and house hack in Hudson, Bergen, Essex or Union Counties

Current budget is at 250-450k.

I would like to find a property preferably in an area that is up and coming and close to the city since I will be commuting. I also have a preference for towns that are very walkable since at the moment I don’t have a car.

My ideal city is Jersey City (previously worked in the downtown area) because of its proximity to NYC but I know that with my budget it would be very difficult to find deals.


Is North Jersey a reasonable option for me at this point or should I reconsider given my expectations? Many thanks!

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Harry Arnold
Flipper/Rehabber · Hazlet, NJ · Member since 2017 · 61 posts · 110 votes
5y

The fact that you’re on BP and asking questions means you have the “itch.” I looked at properties for years before I was in any kind of position to do anything. You’re further ahead, just from the angle that you can buy an owner occupied property - and seem to have done some preliminary research. I have 20 years on you and will give you unsolicited advice - go ahead and do it! Even if it’s not the “deal of the century”, after some time it will be amazing! Every single property I was on the fence about years ago, now has a ton of equity. I quit my W2 job 3 years and 4 days ago (who’s counting!) to do this full time. I’m not “rookie of the year” - but, I’m happy (not satisfied) with where I’m at. 10 houses in total, and hold 6 of them as rentals. My goal is to do 10x that in the next 3 years! I have a good feeling about you. Get creative with house hacking. It doesn’t have to be multi-units, you only have to say you “intend” to live in it as your primary residence for the mortgage, etc. A year from now - you’ll be on here looking for your NEXT deal! Good luck. 

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  • Eric Gomez
    New to Real Estate · Jersey City, NJ · Member since 2020 · 33 posts · 11 votes
    5y

    Hi Stefanie,

    Maybe you can take a look at Bayonne, decent commute to the city and residential area. Bayonne will be booming in the upcoming years

    2Reply
  • Raymond Temprano
    Contractor · Belleville, NJ · Member since 2020 · 90 posts · 60 votes
    5y

    @Stefanie R. The whole Northern market is very competitive. With that price range you won’t find much and will prob be out bid. Hold off for a few months or look towards western NJ. Parts of Central you may get lucky. 

    0Reply
  • Joseph Guzzardi Jr
    Rental Property Investor · Member since 2019 · 411 posts · 148 votes
    5y

    @Stefanie R. Nice to meet you Stefanie. Assuming your looking on market, Jersey City is out even for a 2fam with max budget of 450. Bayonne could work but the property will likely need a fair amount of updating. Essex county will likely be the most viable from a budget standpoint but must consider individual neighborhoods if you plan on living there. I currently focus my investing in the Essex county area.

    0Reply
  • Harry Arnold
    Flipper/Rehabber · Hazlet, NJ · Member since 2017 · 61 posts · 110 votes
    5y

    I found there was no short cuts to finding deals in the beginning. Look at every site online you can get a hold of - every day until your eyes hurt. Then, call on every possible deal until your ears hurt. Then, look at the ones that have a chance of being a good deal until your feet hurt. Then, put in an offer immediately and hope you get it. In the beginning I spent time doing things that made me feel like I was doing “something.” However, deep down I knew it was a waste of time. The real work hurts sometimes, but it pays off when you get your first, second and tenth deal. 

    3Reply
  • Stefanie R.
    OP
    Member since 2019 · 11 posts · 0 votes
    5y

    Thank you so much to everyone for your feedback! 

    @Eric Gomez I appreciate your suggestion on Bayonne. It only seems right since Jersey City is a hot market and so naturally more people will look at Bayonne as a potential place to live when prices start to rise in Jersey City.

    0Reply
  • Stefanie R.
    OP
    Member since 2019 · 11 posts · 0 votes
    5y

    Hey @Raymond Temprano. I appreciate your suggestion, I will definitely try to hold off for a while and also look into Western and Central Jersey as well. Definitely can’t go wrong with either.

    0Reply
  • Stefanie R.
    OP
    Member since 2019 · 11 posts · 0 votes
    5y

    Hi @Joseph Guzzardi Jr. Nice to meet you as well! Any advice on the best towns in Essex County worth looking into?

    0Reply
  • Stefanie R.
    OP
    Member since 2019 · 11 posts · 0 votes
    5y

    Awesome advice @Harry Arnold. This definitely was what I needed to hear to keep me motivated to find the right deal. It won’t be easy but it will happen in due time and when it does it will be worth the wait. I will definitely make sure to put the necessary work in the meantime. Thank you!

    0Reply
  • Joseph Guzzardi Jr
    Rental Property Investor · Member since 2019 · 411 posts · 148 votes
    5y

    @Stefanie R. That answer is going to be based on what your long term goal is. I wouldn't expect prices to go down any time in the future.

    0Reply
  • Harry Arnold
    Flipper/Rehabber · Hazlet, NJ · Member since 2017 · 61 posts · 110 votes
    5y

    The fact that you’re on BP and asking questions means you have the “itch.” I looked at properties for years before I was in any kind of position to do anything. You’re further ahead, just from the angle that you can buy an owner occupied property - and seem to have done some preliminary research. I have 20 years on you and will give you unsolicited advice - go ahead and do it! Even if it’s not the “deal of the century”, after some time it will be amazing! Every single property I was on the fence about years ago, now has a ton of equity. I quit my W2 job 3 years and 4 days ago (who’s counting!) to do this full time. I’m not “rookie of the year” - but, I’m happy (not satisfied) with where I’m at. 10 houses in total, and hold 6 of them as rentals. My goal is to do 10x that in the next 3 years! I have a good feeling about you. Get creative with house hacking. It doesn’t have to be multi-units, you only have to say you “intend” to live in it as your primary residence for the mortgage, etc. A year from now - you’ll be on here looking for your NEXT deal! Good luck. 

    6Reply
  • David Smith
    Rental Property Investor · NJ/PA · Member since 2016 · 555 posts · 149 votes
    5y

    You get what you pay for.  Be careful with tenants in NJ. 

    1Reply
  • Eric Gomez
    New to Real Estate · Jersey City, NJ · Member since 2020 · 33 posts · 11 votes
    5y

    @David Smith hi David would you expand a bit regarding the tenants and why be careful? Any experience to share

    0Reply
  • Shanna Vataj
    Real Estate Agent · Westchester, NY · Member since 2021 · 77 posts · 35 votes
    5y

    @Stefanie R.

    Skip Nj and search in CT. Lots of investment opportunity there.

    1Reply
  • Shanna Vataj
    Real Estate Agent · Westchester, NY · Member since 2021 · 77 posts · 35 votes
    5y

    @Shanna Vataj

    The price range is a bit low. You would be able to find something like that in upper Hudson Valley or about 2 hour commute to NYC in CT (new haven area)

    0Reply
  • William KwongPro Member
    Real Estate Agent · Jersey City, NJ · Member since 2015 · 110 posts · 53 votes
    5y

    @Stefanie R. Hey Stefanie, to other people's point JC is very difficult to find a 450K multi. Bayonne has some price points under 450K but taxes I feel are higher than JC. Also, I've noticed rental prices are relatively cheap for the purchase prices of what you get. Union City is not bad but typically will need updating. You'd have to do some soul searching and figure out what your goals are with the house hack. (Return on Cash flow? Or Return on Equity? Of course to be both is ideal but you'd have to run the numbers and also would depend on your down payment. Also, if you're looking for more turnkey properties, then you're most likely at your limit of 450K.)

    Essex in areas such as Newark, Irvington, East Orange are where you'll get the biggest bang for your buck IMO but definitely do some due diligence on all the areas. Bloomfield has some options in the $400K range but they are slim and need some work. Rahway (Union County) is a good town and has a train station also, but not as walkable as other urban areas. - There's a few options there right now & Garfield in Bergen County has some options as well but you'll most likely need a vehicle for all these places as their more suburban.

    Let me know if you need anything else.

    0Reply
  • Dennis Yosco
    Rental Property Investor · Bloomfield, NJ · Member since 2020 · 138 posts · 128 votes
    5y

    Jersey city is a slight possibility but you won’t get a nice area like the heights or downtown. Something on communipaw is possible but it’s not there yet. 
    west New York, union city, Gutenberg, weehawkin are all viable options. 

    Bloomfield is where I live and invest. It’s a small town but fantastic. I live it here. It’s over priced right now though and if you are buying a 450k property in Bloomfield it’s on the south side by Newark. You want brookdale, oakview, Demerest, Franklin in that order. Brookdale is gonna run you 700k for a multi. You can maybe maybe touch a Franklin for 400k, pm for info on that area. 

    Belleville is good. Kearny is good. It’s up and coming and has a great rental market. Newark is good by the broad st area from east Kinney to Belleville. 

    Look at lyndhurst, Carlstadt, East Rutherford. Those last two your price point is higher but your taxes are substantially low. 

    I’m not an active realtor but I grew up in north jersey and know this whole area like crazy. Reach out to me for any questions 

    5Reply
  • George C.
    Member since 2020 · 38 posts · 9 votes
    5y

    @Dennis Yosco I am in similar situation as @Stefanie R. and have been looking mostly in hudson county and JC seems to have the lowest property tax, was looking at McGuinley Sq and Greenville neighborhoods but seems little more sketch than preferred wondering if I should expand search to those areas you mentioned Kearny and Belleville, would you say they are comparable neighborhoods?

    0Reply
  • Dennis Yosco
    Rental Property Investor · Bloomfield, NJ · Member since 2020 · 138 posts · 128 votes
    5y

    @George C. if you want an area comparable to jc then west New York is your next closest id say. Its hard to compare town to town like that. Jersey city is attractive because of the light rail and the ferry to the city, it has the views and all that.

    Harrison NJ is under redevelopment as well. Its quite the trendy spot in the area around the stadium. 

    Kearny is similar in some aspects to Bellville. Its more of a blue collar town and there are some decent spots. You can get some pretty nice duplex deals in that area. The side streets off of route 7 before the cemetery are the best areas. Look for the best schools in that area and then find duplex near that.

    0Reply
  • Max Vishnev
    Real Estate Agent · Bayonne · Member since 2019 · 52 posts · 80 votes
    5y

    @Stefanie R. -- You've gotten some great feedback here, so at the risk of sounding a bit redundant, I'll just add my two cents here.  It would be very hard today to find a good MF property in a good area ("good" being a vague term, I'll label it "B- or above") listed under 500k, unless it's very small (sq footage, # of beds/baths), needs a LOT of work, or is in a subpar location (close to busy road, gas station, highway, etc).  I'm very active in Bayonne, JC, and elsewhere up and down Hudson County, and it's tough to find anything under 500k that doesn't need a large cash outlay and isn't tiny.

    You have to consider a few factors as you start your "house hacking" journey:

    - How much cash do you have on hand vs what you would need? Down payment (at least 3.5% if you go the FHA route), closing costs (2 to 3% of purchase price, all in), rehab costs (could easily reach 100k in today's environment if the property needs a lot of work).

    - How much "fixing up" are you willing to deal with?  The less work a property needs, the higher the price point, but on the flip side, the lower the cash outlay.  And at today's incredibly low mortgage rates, it may make sense to pay a bit more up front and finance it at or around 3% over 30 yrs rather than try to get a lower price point only to end up with a major cash drain of a fixer upper.

    - What are you willing to sacrifice in terms of your quality of life if you buy in a lower price point area?  What are you used to now?  Do you like walking to local cafes, organic supermarkets, train station, etc?  Depending on the area and the price points, you may have none of that within walking distance.  Not a deal-breaker (unless it is for some people) but just one of the many factors you have to consider, since choosing a house-hack is a quality of life decision too, not just a financial one.

    - Speak to a reputable local lender (if you haven't already).  Do you know what loan amount you can get approved for?  Until you know that, you can't really have an accurate picture of what to target.

    These are just a few points that come to mind.  There are plenty more.  Food for thought....

    3Reply
  • Alexander Szikla
    Real Estate Agent · New York City · Member since 2020 · 819 posts · 641 votes
    5y

    Other cities worth exploring are Fort Lee, North Bergen, Secaucus and East Rutherford. 

    All with excellent access to NYC. 

    3Reply
  • George C.
    Member since 2020 · 38 posts · 9 votes
    5y

    @Dennis Yosco thank you for your insights that's very helpful!

    0Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    As many said, 250-450k is restrictive right now. Depending on how long of a commute you can handle if you need to get back to NYC often, Morris Co has some towns with house hacking options that will work. We have an investor in a two-family (4 total BR, 2 total BA) in Netcong for 299k. Dover is an option and surrounding areas as well, even though Dover is almost over 450k now as well. Jersey City and all of Northern NJ is tough, depending on your town preferences. For 450k in Belleville, you could get a fixer-upper multi if lucky. I do like what a lot of people said re: Bayonne. Good commute, high potential, bad parking.

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    1Reply
  • Stefanie R.
    OP
    Member since 2019 · 11 posts · 0 votes
    5y

    Thank you so much to everyone that has contributed to this thread so far. Your insight has been really appreciated and is one of the reasons why I'm truly grateful to be a part of this amazing community. Thanks again!

    0Reply
  • Vaughn Smith
    Property Manager · NJ · Member since 2017 · 786 posts · 396 votes
    5y

    @Stefanie R. Here is my $.02 you may want to take a look at cities a bit further south to find what you're searching for, I wont repeat what others have said but the advice from Max and Jonathan spelled out your options pretty well. Your price point is challenging, but there may be some options for you in Elizabeth, or Plainfield in addition to the towns that others have mentioned. This is NJ though so be sure that you research the taxes on the property thoroughly and make sure you familiarize yourself with the neighborhood and the surrounding blocks as many of these properties may be located in  or around "transitional" C/D/F neighborhoods

    2Reply
  • Jonathan Soto
    Lender · Newark, NJ · Member since 2016 · 695 posts · 252 votes
    5y

    i invest in essex county. if you need any help or guidance i'm an open book.

    0Reply
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