All Forum Posts by: Shawn Mcenteer

Hi @Jerome Anderson multi family investing is very specialized.  Would you go to a foot doctor if you have  tooth ache?  Extreme example but my guess is you would go to the dentist. Unfortunately with real estate realtors all get clumped together as 1 entity and that cannot be farther from the truth. In the past 2 months I have submitted 12 offers for clients, I am currently under contract for 5 of them about to be 6 tomorrow.  The best part is all of these deals I know for fact we are not the highest bid.  Plain and simple I speak a different language to realtors and position myself as the multi family expert much like a specialized doctor does.  So at the end of the day when someone is seller their multi family do you think they want to sell with the ABC realtor or the specialist that has extremely high track record of closing multi family properties?   

To answer your question as to where to invest.  I know the markets that make most sense especially if your goal is to get cash flow (yes I have clients living for free and/or cashflowing  in todays market).  What's most important is avoiding the markets with strict land lording laws and invest in the markets with high rental demand. 

@Jenny Serrano area plays such a huge part, unfortunately I am not dialed in with South Jersey as I am with house hacking in North and Central Jersey.  I will say this from the lending side North or South does not make much of a difference so happy to connect you with proper lending strategies for house hacking.  Lets connect over DM to dive deeper with house hacking style loans.  Also always happy to dive deeper with house hacking in generals, there is a lot you can be doing specific to NJ to help protect you and set you up on the fast track to successful house hack. 

Hi @Karl Llewellyn BRRRR is great way to go in North Jersey. We are a high (and fast) appreciation state for both purchase price and rent increases. BRRRR house hacking has been an life changing strategy for many years in Jersey and still works wonders today.

I @Jenny Serrano I have used 5% down loans many times to purchase properties.  The key is owner occupying.  Seems like in your case owner occupying a multi family may be a smart move for you. One unit pays for bulk of the property while you can still help care for your family members.  If you are looking to house hack a multi family I can connect you with a loan provider that specialize in this type of strategy. 

Hi @Richard Li House Hacking NJ is great way to go. My wife and I got to Fi leveraging house hacking strategies. I will say anything with HOA is very tough. The HOA is an extra barrier you must maneuver. Small multi family tends to see much more consistent ROI.

I will say in addition some of the best rental comps I get are off market, meaning I know what my clients are renting properties for and the rents tend to be substantially higher in many case compared to want zillow or MLS will show. The point I am making is analyzing properties can be tough without accurate data.

Second point I want to make with house hacking is that it is very town by town.  There are areas that produce huge rents with consistent appreciation while on the other hand there are market we all should be avoiding becuase the laws and regulations make the longer term very difficult.  

@Annabella Molina-Skrobe if you are planning to put 25% down you will have plenty to options to chose from.   Regarding the WNY property, are you planning for a traditional LTR or are you open to creative rental strategies?

Hi @Annabella Molina-Skrobe it depends on the individual and what type of investment property it is. West New York is good location for rules and regulations,  I would be very careful regarding the neighboring towns.  Laws can make land lording very tough.  Are you thinking of owner occupying?  

Hi @Steve Bob I am located in New Jersey.  The issue I have with Biggerpockets is to often everyone jumps in offering a diagnoses without understanding enough about a situation.  Then on top of it everyone jumps in to tell a story about how investing in their out of state rental market is amazing. 

Simply put regardless of the market you live in House Hacking continues to be one of the smartest ways to invest safe and with minimal risk.  Its rare you see house hackers numbers in any market preform lower than OOS rental.   If you are in Brooklyn I would look at NY or NJ in close proximity to NYC, you live in one unit rent out the other reduce your monthly expenses.  What's great about this is the lending options, $50k has potential to get you $1m home if leveraging the correct loan. Anything OOS will get you $200k property for $50k

Your original question should not be answered by anyone without knowing the market you want to invest in.  Buying a property in a "rough" neighborhood" in NJ is not the same as buying one in another part of the country.  NJ is a very established state maxed out, meaning many rough neighborhoods are not just going to turn over without major redeveloping.  

Buying in more established neighborhoods tends to produce greater ROI becuase of the demand to get into these areas is high. My wife in and buy destressed properties in high demand areas and turn them into cash cow rentals via house hacking. We also leverage what I call LIFF (live in fix and flip) and purchase single family properties in these neighborhoods to live in and renovate.

Hi @Xavier Vazquez   Everyone wants the best deal, very rare anyone gets into this looking for the worst deal.  What matters most here is you current situation and what goal you are looking to achieve. Best deal for you may be horrible deal for another investor.  If you understand this is buy and hold and you have a long term vision multi family can be absolutely life changing.  If you are looking for instant cashflow/success its possible it just take major effort somewhere i.e.  Updating property, creative rental strategy, etc 

Hi @Chaim Mal I would look deeper into house hacking.  You can hit 1% rule in NJ.  You don't have to have to house hack I just recommend it becuase you can purchase properties with low money down loans which in most cases allows you to move faster.