Hey everyone!

I posted here last year about wanting to get into real estate investing through house hacking, and I received some great advice. One of the biggest recommendations was to wait until I received a decision on my disability benefits before moving forward. I took that advice, and I’m happy to share that I’ve finally been approved!

Now I’m revisiting my goal of house hacking and trying to figure out the best way to make it happen in New Jersey.

I currently have an FHA pre-approval for $260,000 with $22,000 in down-payment assistance. I also received another pre-approval for $300,000, which includes $1,800 in projected rental income. I'm comparing my options and trying to determine which route makes the most financial sense.

My goal is to purchase a property where I can live comfortably while generating rental income to help offset my housing expenses and build equity.

The biggest challenge is finding the right market. I live in North Jersey, where real estate is expensive. Ideally, I’d like to purchase a duplex, live in one unit, and rent out the other.

South Jersey seems to have more affordable opportunities, but relocating that far south isn’t realistic for me right now because of my disability and mobility limitations. I’m open to Central Jersey, but most of the multifamily properties I’m finding within my budget seem to be in Trenton. I’d prefer to explore other areas if possible.

I’ve been searching Zillow and Facebook Marketplace, but I’m still trying to figure out which markets and property types offer the best opportunities.

I'm also curious about the possibility of purchasing a single-family property and adding an accessory dwelling unit (ADU) to generate rental income. Has anyone gone this route in New Jersey? I'd love to hear about the feasibility, zoning restrictions, costs, financing options, and whether this strategy makes sense compared with purchasing an existing duplex.

A few things I’d appreciate advice on:

• Market selection: What towns in Central or North Jersey should I research for properties in the $260K–$300K range?

• ADUs: Has anyone successfully added a legal rental unit to a property in New Jersey? Were the zoning and permitting processes manageable, and did the numbers make sense?

• Property strategy: Would you focus on finding an existing duplex, buying a single-family home with an existing ADU, or purchasing a property where an ADU could be added later?

• Finding deals: Are there other resources, local networks, or strategies I should be using to find potential house hacks?

• Realistic expectations: Given the current New Jersey market, am I overlooking any opportunities or alternative strategies?

My goal is to make a smart, sustainable first investment rather than stretch myself too thin just to get into the market. I also need to be mindful of my mobility limitations, so the property and its day-to-day upkeep need to be manageable for me.

I know New Jersey can be a challenging market, but I’m hoping there are opportunities I haven’t considered. I’d appreciate recommendations for towns, personal experiences, and any advice from people who have successfully house hacked in a high-cost market.

Thanks in advance for your help!