House-Hacking in New Jersey Market

House Hacking
9moFollow

House-Hacking in New Jersey Market

Eddie SchreiberPro Member
Member since 2024 · 8 posts · 3 votes

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!

1Reply
238 views

Most Popular Reply

Alan AsriantsBusiness Member
Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
9mo

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.

[email protected]267-767-0111
Alan Asriants - New Century Real Estate 591 Reviews
View Page
3Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Anthony DiSanzoBusiness Member
    Real Estate Broker · Monmouth County / Ocean County / Middlesex County · Member since 2023 · 28 posts · 14 votes
    9mo

    Hi @Eddie Schreiber

    I think you’re definitely thinking in the right direction, and it’s always better to start working toward these things earlier. To answer your question, I think a good real estate agent can sometimes be very helpful when it comes to finding deals. 🤔

    Also, depending on your down payment, there are certainly some opportunities for house hacking. Prices are high in NJ, but so are rents.

    In Monmouth County, depending on your price point, you might want to check out towns such as Union Beach, Keyport, Long Branch, and Freehold.

    I also wouldn’t count out Middlesex County and Ocean County if you have the ability to stretch, as I’ve found more success with clients in those areas as well.

    2Reply
  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    9mo

    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.

    [email protected]267-767-0111
    Alan Asriants - New Century Real Estate 591 Reviews
    View Page
    3Reply
  • Ryan SpathBusiness Member
    Real Estate Agent · Boise, ID · Member since 2017 · 571 posts · 378 votes
    9mo

    @Eddie Schreiber

    Eddie, first off, you’re way ahead of the curve. The fact that you’re already thinking about small multifamily, house hacking, and market realities before graduating is exactly how you set yourself up to move quickly once you’re working.

    A few thoughts based on what you’re running into.

    On finding true 2–4 unit inventory, I can't speak directly to the NJ market since I don't actively invest or search there. That said, in a Florida market where we do invest, it's very common to see small multifamily properties listed as single-family homes. This usually comes down to how the property is classified in the MLS.

    What tends to help is working with an investor-friendly agent who can run proper MLS searches for 2–4 units. In markets like NJ, that makes a big difference. I'd also look for an agent who actively invests themselves, as they usually understand how to spot misclassified properties and evaluate deals through an investor lens.

    When it comes to your first deal, real estate often starts as a way to reduce your housing costs. The goal of a house hack is to live in the property, offset your expenses, and gain experience as a landlord while you’re on-site. When underwriting your first purchase, I’d encourage you to run the numbers so that once you move out, the property is cash flow positive and functions as a true rental. In my opinion, this step is especially important if you plan to repeat this strategy multiple times.

    Most experienced investors didn’t start with perfect numbers on their first deal. They focused on having a clear buy box, underwriting conservatively, and keeping a long-term mindset. Your biggest advantage right now is time. Over the next 12 to 18 months, focus on building W-2 income and credit, learning two or three specific sub-markets really well, and building relationships with agents and lenders before you actually need them.

    The bigger picture is building a portfolio that can serve you later in life. Growth matters. On average, real estate appreciates around four percent per year, which means a property can roughly double in value over about 18 years if that holds true in your market. If you’re able to accumulate several properties and simply let time do its work, you give yourself a lot of optionality down the road.

    You’re asking the right questions at the right stage. Keep going. The first deal is less about perfection and more about momentum. Happy to see more people starting this early.

    [email protected]208-600-2814
    1Reply
    • Eddie SchreiberPro Member
      OP
      Member since 2024 · 8 posts · 3 votes
      9mo

      @Ryan Spath thank you so much for the knowledge. I am excited to start this journey when I graduate! 

      0Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    9mo

    Hi @Eddie Schreiber House hacking is great way to go. My wife and I got to Fi leveraging the strategy.  Craziest part is if you are open to different strategies House Hacking in todays market can be more lucrative from when I started in 2015.  Granted with this its all about time in the market not timing the market but with that being said there is opportunity to see huge rents.  

    1. standards site work: my guess is the area you are searching might not be the best for small multi.  

    -agent changed my trajectory big time, I went from guess with the wrong agent to find one an investor friendly realtor that did what I wanted to do.  That meant I was no longer guessing, instead I was following a plan.

    2.NJ absolutely can cash flow.  I have multiple clients cash flowing using low money down loans.  I just closed on a property 2 months ago for a client, we are getting it rented with 1 unit playing the bulk of the mortgage.  When he moves out he will for sure being cash flowing.  I find deals like this all the time (creative rental strategy plays big part)

    -Yes 100% there are towns you want to search in and more importantly towns you want to avoid.  I am over 10 years investing yet to miss a single payment of rent, a lot of that has to do with the fact I know the towns to avoid and the ones that attract good tenants with large rent increases year over year. 

    I recommend cash flow and appreciation :)

    973-975-3895
    House Hacking New Jersey563 Reviews
    WebsiteView Page
    1Reply
  • Joseph Guzzardi Jr
    Rental Property Investor · Member since 2019 · 411 posts · 148 votes
    9mo

    Compared to other counties, Monmouth does not have a significant amount of volume of MFR. In addition, many are priced very high. If dead set on staying in Monmouth, explore Neptune/Asbury Park and Keansburg areas.

    Otherwise your best bet is to look outside the county. I've been investing in MFR for years now and can assist in your search if needed.

    1Reply
  • Eddie SchreiberPro Member
    OP
    Member since 2024 · 8 posts · 3 votes
    9mo

    @J Castro thank you so much for the insights! I know that I will use each part of that information to help get the right deal when I start. I will make sure to reach out after I graduate and am ready to really start my investing journey. Thanks again! 

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free