First timer here. Looking for a small multi-family house hack. Is NJ even worth it?

Question

Hi! I'm a first-time home buyer looking for some guidance/reassurance in a relatively expensive market. I have a decent amount in equity investments (stock) that I'm ready to diversify with REI. I currently live in Portland, Maine but am from NJ so I'm open to anywhere in the Northeast (ideally NJ or greater Portland.)

My current goal is to house-hack to gain experience, and my end goal is to own enough single or multi-family homes to have a decent cash flow that allows me to only need to work part-time and care for kiddos.

• 1. Do any small-scale investors have luck in NJ? (I know that's a very 'it depends' type question!)
• 2. Do any small-scale investors have luck in Greater Portland, Maine, or even Boston/Rhode Island areas?
• 3. What was your first deal and what did you learn?

1. Do any small-scale investors have luck in NJ? (I know that's a very 'it depends' type question!)

2. Do any small-scale investors have luck in Greater Portland, Maine, or even Boston/Rhode Island areas?

3. What was your first deal and what did you learn?

THANK YOU to long-time BPers for reading and assisting the newbies. :)

Nicholas L. · Answer

@Mariel Johnson

hi Mariel and welcome.  house hacking is a great way to get started.  if you have a family, it's more complicated.  it can work almost anywhere, but it's really about repurposing your housing payment toward building equity and not about making money.  some people house hack and are slightly negative each month, in terms of the rent not entirely covering the mortgage - but contrast this with paying thousands for rent that doesn't build any equity. that's a personal decision.

and with respect to your statement on cash flow i want to throw something out.  in the short term, real estate - and especially long term rentals - is great at providing you with equity, and not great at providing cash flow.  a lot of single families and small multis only rent for enough to sustain the cost of owning them and no more.  so it's going to take either a large portfolio, or many years of ownership, to generate meaningful cash flow.  my only properties that cash flow have interest rates in the 4s - the rest are BRRRRs that break even.

i say this not to be discouraging, but to be realistic.  many investors on BP who chase cash flow buy in challenging markets where the numbers look good on paper but don't do as well in reality.  see for example this very thoughtful and recent thread.

Am I the only one that have realized real estate is an awful investment?

hope this helps

happy to dialogue further if you'd like - nothing to sell

Dan Weber · Answer

Hey @Mariel Johnson Southern ME has many different sub markets that have their pros and cons. If you're interested in learning more about house hacking in one our local markets, shoot me a dm and we can chat.

Dan Adams · Answer

Portland Maine is great, but it has some abysmal numbers for investors or first time home buyers.
If I were open to anywhere in New England, I would check out Hartford. I've been hearing good things about prices and growth there.

Aiden Avtgis · Answer

Hi Mariel,
Many first-time investors heavily focus on cash flow, which isn't wrong, but definitely take time to look at the tenant/landlord laws in the states you are considering as this can heavily affect your long-term cash flow.

New Jersey is generally more tenant-friendly, with stricter eviction protections, good-cause requirements in many cases, and potential local rent-control restrictions. In comparison, Midwest states like Ohio, Indiana, and Missouri generally offer landlords more flexibility through straightforward eviction procedures and fewer rent-control restrictions. These laws can make it easier to manage nonpayment, adjust rents where permitted, and protect cash flow, making certain Midwest markets worth considering for investors seeking fewer regulatory hurdles.

Arman Ahmed · Answer

For a first house hack, I’d focus less on the state and more on whether the property actually works with the mortgage, rents, and expenses. NJ and New England can work, but I’d also compare a few Midwest markets before putting your money to work. The Midwest is worth a look because the lower entry prices can give you more options for a first deal.

Diana Khan · Answer

@Mariel Johnson, I really like that you’re looking at your first property as a way to learn. I’ve worked with first-time buyers and investors where the house-hack idea looked great on paper, but the property itself needed a little more digging.

With a duplex, triplex, or other small multifamily, I always like to make sure the number of units is actually legal and matches the property records. I’ve seen situations where an extra unit looked completely normal during the showing, but the records or permits told a different story. Existing leases and tenants can also change what you are really walking into.

I’d be glad to stay connected, @Mariel Johnson. You’re thinking about this the right way by looking at the long game instead of expecting the first property to do everything at once.

G. Brian Davis · Answer

I like the house-hack approach for a first deal. You’re getting experience while the other unit(s) are helping with the mortgage.

I wouldn’t get too hung up on which market is “best.” I’d look for a property where the numbers work and where you understand the market well enough to manage the risks.

My biggest advice would be to be conservative with your numbers. Repairs, vacancy, taxes and insurance can change the picture pretty quickly.

And don’t put too much pressure on yourself to make the first deal a home run. You’ll learn a lot from actually owning the property that you just can’t learn from reading about it.

Joseph Scorese · Answer

Mariel, welcome to BiggerPockets. I think you’re approaching this the right way by focusing first on gaining experience rather than trying to make your first property accomplish every long-term goal.

I work with real estate investors throughout the Northeast, and small multifamily opportunities absolutely exist in NJ and the surrounding markets. The bigger question isn’t simply whether NJ is “worth it” — it’s whether the specific property works based on purchase price, rents, taxes, insurance, condition, financing, and your long-term strategy.

For a first-time house hack, I would pay particular attention to 2–4 unit properties where living in one unit can meaningfully reduce your housing expense while the other units generate income. Owner-occupied financing can also look very different from traditional investor financing, so understanding your options before shopping can help establish a realistic acquisition budget.

One lesson I’ve seen repeatedly: don’t buy your first property solely because it looks like a great deal on paper. Buy something you understand and can realistically manage. Your first investment is also an education in tenants, repairs, financing, reserves, property management, and operating expenses.

NJ can be challenging because taxes and acquisition costs can materially affect cash flow, but that doesn’t automatically make it a bad market. Sometimes the opportunity is less about immediate maximum cash flow and more about reducing your own housing expense while building equity and learning how to operate a property.

Since your long-term objective is eventually creating enough cash flow to have greater control over your time, I’d work backward from that goal. Learn the numbers, maintain adequate reserves, avoid overleveraging, and treat the first property as the foundation rather than the finish line.

Best of luck with the search. House hacking can be a great classroom for learning real estate because you’re not just studying the business — you’re operating the asset every day.

Shawn Mcenteer · Answer

Hi @Mariel Johnson House Hacking is great way to reduce expenses and obtain an asset. I started house hacking over 10 years ago, today those properties have set me and my family of 6 up for financial freedom. Many say "10 years ago is not the same as today" true statement but that doe snot mean you cant reach goals in todays market. The price of homes are very expensive in New Jersey but so are rents. I will let you know I have multiple clients who are living for free in house hacks in todays market, I have clients who have moved out of their house hacks and are cash flowing significantly. The best advise I can give is listen to those doing what you want to know and not those who speculate on what works or does not work. New Jersey absolutely can cash flow and house hacking is still hands down ones of the smartest decisions a new investor can make.

To answer your quetsions:

1) yes, the more creative and open minded you are the higher chances of success you'll have
2) Sure, success is all over

3)lots to talk about, I have a youtube channel dedicated to house hacking that breaks it all down.

To answer your quetsions:

1) yes, the more creative and open minded you are the higher chances of success you'll have2) Sure, success is all over

3)lots to talk about, I  have a youtube channel dedicated to house hacking that breaks it all down.

JD Martin · Answer

Welcome - I'm also originally from NJ (and born in the town you pegged). It's a tough market just because your costs of entry are so high. I don't know how long you've been gone from there or how long you've been in Portland but generally it's better to start where you are and where you know than anywhere else. Portland & surrounding areas I'm certain is cheaper than most of NJ.

House hacking generally means you're going to have roommates, or a duplex/triplex/quadplex that you're going to rent out all the other units and (hopefully) live in the dumpiest/smallest/least desirable unit while you build your equity & your tenants pay the mortgage. If you have kids I highly recommend you don't rent by the room. I don't think there's stranger danger around every corner but there's always inherent risk with inviting strangers into the house, who then also may have their own (undesirable) house guests.

First timer here. Looking for a small multi-family house hack. Is NJ even worth it?

First timer here. Looking for a small multi-family house hack. Is NJ even worth it?

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