1st time homebuyer, looking to house hack.

Jersey City, New Jersey
House Hacking
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1st time homebuyer, looking to house hack.

Orlando Canepa
New to Real Estate · Garfield, NJ · Member since 2022 · 5 posts · 6 votes

Hello everyone,

I’m currently pre-approved and looking to purchase my first home using a house-hacking strategy. Inventory for two-family homes in my area has been very limited, so I’m considering whether I should start driving neighborhoods to find I'm seasoned salesman with over 25 years in management experience so up my alley speaking on the phone.  off-market opportunities that may be better suited for renovation using the FHA 203(k) loan I’ve been approved for.

So far, competing in the current market has been very challenging. I recently lost a bid on a property in Clifton, NJ (2 units 4BR)that was listed at $599,000 I offered $640,000 and was still outbid, even though the home required significant work. I’m trying to avoid getting caught in bidding wars or overpaying and then losing the funds I need for renovations.

I would greatly appreciate any advice or strategies for finding opportunities without constantly overbidding. Ideally, I’m looking to stay within Bergen County or Passaic County.

Thank you in advance for any guidance.

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Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
8mo

Hey There @Orlando Canepa - If you are considering a property that needs works I highly suggest doing the FHA 203k it's a golden ticket to instant equity if you have the right people on your team. We do a ton of them here in Chicago and the be far most important thing is find the right contractor, lender, agent, and hud consultant.

Also, since it's your first property, I'd just look at the MLS for listings that have been up there for a while and find a cutthroat realtor to negotiate a good price for you!

[email protected]
Quality Builders4.968 Reviews
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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    8mo

    That is a tough market. I would still look at the MLS deals but would be a good idea to contact sellers yourself. You can skip trace to find owners info then reach out. Keep chugging along you'll land one

    1Reply
    • Orlando Canepa
      OP
      New to Real Estate · Garfield, NJ · Member since 2022 · 5 posts · 6 votes
      8mo

      @Caleb Brown   Thank you, I appreciate the encouragement. I agree the market has definitely been challenging, but I’m planning to stay consistent and keep working both angles by watching MLS opportunities while also learning to reach out to homeowner directly.. Given my sales background, direct outreach is something im very interested in learning, so I’m hoping that approach helps uncover opportunities. Thanks again for the advice . I’ll keep pushing forward.

      1Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    8mo

    Hey There @Orlando Canepa - If you are considering a property that needs works I highly suggest doing the FHA 203k it's a golden ticket to instant equity if you have the right people on your team. We do a ton of them here in Chicago and the be far most important thing is find the right contractor, lender, agent, and hud consultant.

    Also, since it's your first property, I'd just look at the MLS for listings that have been up there for a while and find a cutthroat realtor to negotiate a good price for you!

    [email protected]
    Quality Builders4.968 Reviews
    WebsiteView Page
    1Reply
    • Orlando Canepa
      OP
      New to Real Estate · Garfield, NJ · Member since 2022 · 5 posts · 6 votes
      8mo

      @Jonathan Klemm  Thank you  I really appreciate the insight. That’s exactly how I’ve been looking at the FHA 203(k) as well a strong opportunity to create equity early as long as the right team is in place. I completely agree that having an experienced contractor, lender, agent, and HUD consultant makes all the difference, especially on a first purchase.

      I’ll definitely start paying closer attention to listings that have been sitting on the MLS longer. Thanks again for sharing your experience very helpful advice. 

      0Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    8mo

    Welcome to real estate investing...this is reality.  For all of you who watch 'real estate porn' (aka HGTV), it isn't reality.  Plan on being tormented; you're going to losing deals left and right.  Get a seasoned realtor to help you.  Buyers generally do not pay commissions as that ugly still falls on the seller.  You need bench strength.  All investors need bench strength.  

    1Reply
  • John Steffen
    Real Estate Agent · Dallas/Fort Worth, TX · Member since 2019 · 78 posts · 35 votes
    8mo

    Don't forget about SFH + ADU's. They fly under the radar often on the MLS. Also, it's not uncommon for a realtor to mis-list a duplex as a single family on the mls either.
    A good agent should be able to do a deep dive key-word search and present you a list of all ADU and 'under the radar' duplex inventory.

    1Reply
  • Alioune Camara
    Realtor · OH · Member since 2026 · 122 posts · 77 votes
    8mo
    Quote from @Orlando Canepa:

    Hello everyone,

    I'm currently pre-approved and looking to purchase my first home using a house-hacking strategy. Inventory for two-family homes in my area has been very limited, so I'm considering whether I should start driving neighborhoods to find I'm seasoned salesman with over 25 years in management experience so up my alley speaking on the phone. off-market opportunities that may be better suited for renovation using the FHA 203(k) loan I've been approved for.

    So far, competing in the current market has been very challenging. I recently lost a bid on a property in Clifton, NJ (2 units 4BR)that was listed at $599,000 I offered $640,000 and was still outbid, even though the home required significant work. I’m trying to avoid getting caught in bidding wars or overpaying and then losing the funds I need for renovations.

    I would greatly appreciate any advice or strategies for finding opportunities without constantly overbidding. Ideally, I’m looking to stay within Bergen County or Passaic County.

    Thank you in advance for any guidance.




    Hey Orlando,


    House hacking in Bergen/Passaic can be competitive, especially with 2-family homes. A few strategies that help avoid overbidding:

    1. Off-market sourcing: Driving neighborhoods, talking to owners directly, and networking with local agents/wholesalers can uncover opportunities before they hit MLS.

    2. Renovation financing: Since you're FHA 203(k) approved, look for homes that need work but have strong fundamentals—this lets you structure offers that are realistic without overpaying.

    3. Know your max all-in price: Include purchase + rehab + holding costs and stick to it. Don’t get caught in the heat of a bidding war.

    4. Quick offers on motivated sellers: If a property shows signs of being motivated (needs work, been listed a while, absentee owner), a clean, fast offer often beats higher, competitive bids.

      Being strategic and patient is key—sometimes the best deals aren’t listed publicly


      1Reply
      • Orlando Canepa
        OP
        New to Real Estate · Garfield, NJ · Member since 2022 · 5 posts · 6 votes
        8mo

        @Alioune Camara 

        Thank you  I really appreciate you taking the time to lay this out. This honestly aligns very closely with what I’m starting to realize after losing a few opportunities in this market.

        The competition for two-family homes in Bergen and Passaic County has been extremely aggressive, and I’m finding that overbidding on properties that already need significant work quickly defeats the purpose of using the FHA 203(k). My goal is to create equity through renovation, not absorb it upfront in the purchase price.

        I’ve started shifting my focus toward off-market opportunities and direct outreach since that plays well into my background in sales and relationship building. Driving neighborhoods and connecting directly with owners feels like a more strategic approach versus constantly competing on the MLS.

        Your point about knowing the true all-in number really resonates as well. I’m working to stay disciplined with purchase price + rehab + holding costs so I don’t get pulled into emotional bidding wars that limit renovation flexibility later.

        I also agree that targeting longer-listed properties and motivated sellers is likely where the real opportunity will be, especially with a clean and well-structured offer backed by 203k financing.

        Appreciate the advice patience and strategy definitely seem to be the key in this market.

        0Reply
    1. Ben FernandezBusiness Member
      Realtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes
      8mo

      Join Facebook investor groups in the counties you're interested in buying in. 

      Sellers frequent these groups and often try to sell direct to buyer so that they avoid realtor commissions.

      You should also consider three and four units (or up to your affordability considering you'll receive 75% of the gross income the property is leased for).

      [email protected]717-945-7040
      0Reply
    2. Ryan ThomsonBusiness Member
      Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
      8mo

      The FHA 203k approval is a solid tool, but it will not solve the bidding war problem by itself. Assumable mortgages will.

      Bergen and Passaic County sellers who bought in 2020-2022 are sitting on VA and FHA loans at 2.75-3.5%. Those loans transfer to a new buyer at the original rate. A $500K loan at 3% is $2,108/month. At 6.25%, that same balance is $3,079/month. That is $971/month the seller rate saves you.

      Here is why it helps with bidding wars: fewer buyers can qualify for properties at 6.25%. A seller with an assumable loan attracts more qualified buyers, which means less competition from all-cash flippers. Your FHA approval becomes relevant again. You are not fighting 20 offers from investors, you are working a specific financing structure most buyers do not know to ask about.

      Your agent needs to be comfortable running assumption transactions, which take 45-90 days to close. Filter your MLS search for VA and FHA listings specifically. In Bergen County, those properties exist and most sellers have no idea their loan is a selling point.

      The Assumable Guy544 Reviews
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      0Reply
    3. Mohammed Rahman
      Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
      8mo

      Hey Orlando,

      Sounds like a tough market. You might have two main options:

      1. Compromise on the location – consider slightly less “hot” towns in Bergen or Passaic where competition is lower but rents are still solid, so you’re not constantly bidding against investors.

      2. Compromise on the property – look for older, more dated two‑families that need work but sit on good lots or in decent school districts, and focus on motivated sellers (absentee landlords, elderly owners, or estate sales) who’d rather sell quickly than list and wait.

      This way you can use your FHA 203(k) to buy as‑is, rehab into a strong house‑hack, and avoid burning your renovation budget in bidding wars.

      0Reply
    4. Arman AhmedPro Member
      Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 968 votes
      8mo
      Quote from @Orlando Canepa:

      Hello everyone,

      I'm currently pre-approved and looking to purchase my first home using a house-hacking strategy. Inventory for two-family homes in my area has been very limited, so I'm considering whether I should start driving neighborhoods to find I'm seasoned salesman with over 25 years in management experience so up my alley speaking on the phone. off-market opportunities that may be better suited for renovation using the FHA 203(k) loan I've been approved for.

      So far, competing in the current market has been very challenging. I recently lost a bid on a property in Clifton, NJ (2 units 4BR)that was listed at $599,000 I offered $640,000 and was still outbid, even though the home required significant work. I’m trying to avoid getting caught in bidding wars or overpaying and then losing the funds I need for renovations.

      I would greatly appreciate any advice or strategies for finding opportunities without constantly overbidding. Ideally, I’m looking to stay within Bergen County or Passaic County.

      Thank you in advance for any guidance.

       @Orlando Canepa

      Sounds like you're running into the classic high-competition Northeast market frustration. If you want to avoid constant bidding wars and still start house hacking, consider looking at the out-of-state Midwest market. You can pick up duplexes or small quads well below replacement cost, get solid cash flow from day one, and even recycle your capital faster for your next deal. It's a lot easier to start strong without overpaying, and there are plenty of off-market deals that fit FHA 203(k) rehab strategies, too.

      [email protected]614-418-6081
      1Reply
      • Orlando Canepa
        OP
        New to Real Estate · Garfield, NJ · Member since 2022 · 5 posts · 6 votes
        8mo

        @Arman Ahmed 

        Thank you I appreciate the perspective, and I completely understand the advantage of Midwest markets from a numbers and cash-flow standpoint. The lower entry prices and reduced competition definitely make it easier to acquire properties without overpaying.

        At this stage, however, my primary goal with house hacking is to remain local within Bergen and Passaic County so I can owner-occupy, closely manage the renovation, and build equity while living in the property. Being nearby is important to me, especially for my first deal due family and work while using the FHA 203, as I want to stay hands-on throughout the entire process.

        Also due big family , work and being my first purchase without any knowledge of the process seems a little risky to do it out of state but I'm sure it could work out great if I had some insite on this process. 

        That said, I do see the long-term value in out-of-state investing once I establish and stabilize my first property. I appreciate you sharing the strategy it’s definitely something I may consider as part of a future expansion plan.

        0Reply
    5. Shawn McenteerBusiness Member
      Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
      8mo

      Hi @Orlando Canepa smart move sticking with house hacking.  If you are making competitive offers over ask price my guess is something else is missing.  Lets connect to talk more. Its tough to give a diagnoses without hearing the full story but I am pretty confident I will have a solution to help get you house hacking. 

      973-975-3895
      House Hacking New Jersey561 Reviews
      WebsiteView Page
      0Reply
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