All Forum Posts by: Mala S.

@Ryan Champin

Don't let rumors and hearsay stop you. Talk to a mortgage broker to understand how much you can afford. And start looking for properties. It is possible to buy a 2 family in Northern NJ for under 500K that needs little to no rehab. Don't worry about the cash buyers. You can still buy something that makes sense for you. 

This is a house hack/ BRRR in Northern New Jersey about 10 minutes from NYC. The house was an estate sale that needed a gut reno. We remodeled 2 kitchens, 2 bathrooms, added another bathroom, replaced dated tile floors with hardwood throughout, updated plumbing and electrical.

@Gary Murano

Journal Square has seen a lot of appreciation over the past few years, however I still feel there is room to grow. As young people are priced out of Manhattan, Brooklyn & Queens they will continue to seek out relatively less expensive areas like Jersey City that are within easy commute to NYC. Right now a lot the housing stock in Journal Square is outdated and in disrepair. So as neighborhoods are revitalized Journal Square will continue to gentrify. 

Buying a property in JC in good condition may not make the best sense right now. But doing a combo BRRR/ House Hack could make sense with the right property. A flip could be a good idea as well. However, I worry about the market turning by the time your reno is done. It's good to have multiple exit strategies. It would be ideal if you could continue to live in the property if you are unable to sell. So keep this in mind when buying.

Hello BP, 

I just wanted to share some pics before/after of my latest remodel of a 3 family house in Hudson County, New Jersey. I renovated 2 out of 3 of the apartments ( 3rd unit was already renovated). Units are all rented now. Let me know what you think!

The experience was great overall. I can't wait to do the next one!

Hi Peter, 

I don't see anything in your budget for clothing. No matter how minimalist you are, socks and underwear will need to be replaced...Also, haircuts and healthcare copays etc. I think your budget is really tight. Your biggest expenses are rent and student loans. I don't what you can do about the loans (you should find out) but you can definitely do something about the rent. 

Here are some suggestions :

Rent out a bedroom on Airbnb

Get a roommate

Move to a new rental with roommates

Move to a cheaper neighborhood

House hack - Buy a 2 family house and rent out the other unit and some of the bedrooms in yours.

!!!Do the above before you have kids!!!! And remember it would just be temporary. Even just a year or two could really change your life.

The above may sounds like a pain in the butt but trust me, it's way easier for you guys to do this before you have kids. And you will be so happy you did because you will be in a much better financial position when the babies arrive.

I have lived in Manhattan, NY and Hudson County, NJ - some of the most expensive places to live - but I drastically cut my living expenses by doing all of the above at one time or another.

I currently house hack in New Jersey. There are probably better markets to invest if you are willing to go out of state but it is possible to invest in real estate in NJ.

The answer to this will be very market specific. I’m in a fast moving market. If I post ads 30+ days before availability I don’t get as many and/or only calls from people who have to move within 2 weeks or people who are constantly looking for that perfect apt with no real plans of moving and waste a lot of time. 2 weeks before vacancy is when I post ads. I show the apt while occupied but I try to maintain a good relationship with tenants so they are willing to do me a favor by cleaning up for showing. I screen tenants over the phone as much as possible and I schedule all showings back to back so tenant only needs to clean once. Apt is typically vacant only a day or two. Personally I don’t get how people can make such a huge decision like choosing an apartment to rent in such a short time frame. So I always used to post my ad 30+ days in advance. But that just doesn’t work well for my area so I finally learned and do 2 weeks ahead.

That’s great Mike Verna ! Thanks for sharing. I have a few questions... 1. Was the appraised value affected in any way by it being a STVR? 2. Was the refinance loan a conventional loan? Anything different about it because it was a STVR? 3. Did the property being an STVR prevent you from getting a HELOC? (Or did you just have other reasons why you preferred to refi instead. )

Manan Singh I’ve been house hacking in Hudson county for the past 4 years. I will be moving into my 2nd house hack after rehab is done. Check out Union City, North Bergen and Jersey City which are very easy commutes into NYC. I am a 10 min bus ride into Port Authority. The price point may be a little higher than what you were thinking. 500k-800k for a two family depending on size and condition. But since you are getting into it so young, you could find a small 2 family or single family with mother-in-law suite and live n the smaller unit/ rent out the larger one. Or even get roommates in your unit. This way you could cover the mortgage (or most) with the rent. Jersey City Heights and Journal sq prices are high. But if you don’t mind living in an up and coming neighborhood that still feels a little sketchy but is more affordable than the Heights- check out the Bergen-Lafayette neighborhood in Jersey City. Feel free to PM me if you have any questions. Mala

My family and I have been house hacking for the past 3 years and the experience has been great. People say it’s hard to house hack if you have a family but I would have to disagree. We will be moving into our second house next month. Just keep in mind, if you want to do an FHA, for 3 units and up you will need to meet self sufficiency rule. This is very difficult in high priced markets. So you may want to stick to 2 family for now. Also, it is easier to find a property that cash flows. Much harder to find a property that cash flows and you would be happy living in. I often considered giving up and buying a nice condo to live in and another separate rental property. But I’m glad we kept looking because we found the right property eventually. Good luck!

In expensive markets (like parts of NJ closest to NYC) a completely separate room for dining is a luxury. A more typical layout is an open floor plan with kitchen open to living room with some undefined space in between to put a table.

You should check what is the norm for your local area though. I am not so familiar with the part of NJ you are in.