In NJ, on the other hand, appreciation plus rising rents compound quickly, turning a breakeven property into a strong performer in just a few years.For me, that combination of tenant demand, limited housing supply, and strong appreciation history makes local investing worth it, especially if you’re playing the long game.On top of all this I have been investing in NJ for over a decade yet to miss a single payment of rent, the laws that give our state a bad name are not common with with small multi family.

Unlike passive rental income, the income from an active trade or business is subject to self employment tax is nasty.

(Census.gov)Employment Growth: Between 2022 and 2023, employment in Lincolnton grew by 3.98%, increasing from 4,830 to 5,020 employees .

Rentals can be a perfect complement to self-employment income because they generate deductions and long-term wealth in ways that offset what you’re already earning.A few tax points to keep in mind as you start:- Rental income is generally considered passive, which means you’re not hit with self-employment tax the way you are on your 1099 income.

As a former employee of Kristin Witherspoon, I was subjected to repeated instances of non-payment, which is a clear violation of basic employment principles.

These program require showing income and good credit but they exist.There are also programs like DSCR that Do not require income or employment they instead use rents to qualify plus down payment.

One technique we have used is to contact employers, particularly ones that have a housing office and list our rentals with them. 

Class C properties can offer great upside, but watch for surprises like older mechanical systems, tuckpointing needs, or lead pipes—common issues in older buildings here.

Same goes for furnaces and water heaters—create a small common mechanical room for future code compliance.5.

Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.Vacancies: 20%+, depending on market conditions and tenant screening.Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?