Flipper/Rehabber · Dover, NJ · Member since 2020 · 11 posts · 4 votes
I am 21 years old and live in Morris County, NJ. Morris County has the highest median housing prices of the entire state, and some of the highest taxes in the country. I have 150k cash, and would like to eventually go into multi-family unit buildings. I have yet to make my first deal, but I’ve been educating myself as much as I could. Any ideas?
I would advise to house hack a 4plex to learn the basics and it's so cheap to start. Then scale up to multi after you have your feet wet. After the house hack it's up to you, you can.... purchase a multi by yourself with your funds, partner on a deal, go into a syndication, etc
Hi, it depends on where you would like to purchase and/or live. If you could qualify for an FHA loan, I would advise to go that way. you may want to use some of your cash to refurbish the units. FHA loans provide the option to buy with little down and can only be used for one purchase, unless you can show just cause as to why you would want to sell or move from that property. Usually needs to be an upgrade
Feel free to reach out if you would like to discuss areas. I'm local :)
I’d hold that cash close to your chest and treat it as reserves. If you have $1 or $1m the goal for me is to use other peoples money to get the asset, other peoples time to rehab it, other peoples money to refinance it, and other peoples rent money to pay it off. Aka brrrr done right. Cash is cool but it’s also risky, taking on a lender will add an extra set of eyes on your deal, and keeping that cash as reserves will keep your hair from going grey and falling out.