House-Hacking in New Jersey Market

[Eddie Schreiber]

Hi everyone, my name is Eddie. I’m currently a senior in college graduating this May, and I’ve been following BiggerPockets and learning real estate investing for the last 2–3 years.

My goal is to buy my first small multifamily (2–4 units) within my first 1-2 years of working, ideally in Monmouth County or North Jersey, using the house-hacking strategy.

I know I’m early in the process and still building experience, but I’m running into two challenges and would really appreciate insight from those who’ve invested in NJ or similar markets:

1. Finding deals / inventory:
   When I analyze properties on Zillow or Redfin, I’m having a hard time even finding true 2–4 unit listings (as opposed to single-family homes with multiple bedrooms).
   
• Are there better websites, MLS filters, or strategies you recommend for finding small multifamily deals?
• Are most NJ investors relying on agents, LoopNet, off-market deals, or something else?
2. Cash flow & market selection:
   From my analysis so far, it feels like many NJ properties don’t fully cover the mortgage.
   
• Is this just the reality of NJ as an appreciation/house-hack market?
• Are there specific towns, sub-markets, or corridors in Monmouth County or North Jersey that tend to work better for small multifamily and first-time investors?

I’m not expecting “home run” deals, but I’d love to learn how experienced investors think about cash flow vs appreciation in high-cost NJ markets and how they approached their first deal.

Thanks in advance, I really appreciate the knowledge in this community!

[Alan Asriants]

Hey Eddie,

The multifamily market in the Northeast, in general, is very difficult to navigate due to limited inventory. New Jersey, in particular, is one of the toughest markets for finding multifamily properties—especially in the areas you’re targeting. In many cases, the available multifamily housing consists of older Colonial or Victorian homes that were converted many years ago, and there is very little purpose-built multifamily inventory in those locations.

That said, if you look a bit farther south, closer to the Philadelphia border, there are several pockets and neighborhoods with purpose-built multifamily properties that tend to trade at lower premiums compared to Northern New Jersey.

This pricing difference makes sense, as Northern New Jersey functions as an extension of the New York market, while Southern New Jersey aligns more closely with the Philadelphia market.

The key is to maintain a wide search and remain as flexible as possible with location—without compromising tenant quality.

If you do pursue properties in New Jersey, it’s important to focus on assets where significant capital improvements have already been completed. I recommend avoiding properties with extensive plaster walls, as this is often a strong indicator that the building has been patched rather than properly renovated.

Feel free to reach out anytime—I'm licensed in both Pennsylvania and New Jersey.