Central Jersey and want to buy my first property

Newark, New Jersey
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Central Jersey and want to buy my first property

Frank Martinez
NJ · Member since 2025 · 3 posts · 24 votes

I'm 44 and been wanting to get into real estate investing for awhile now.  I live in central Jersey and have $14,000 saved.  I have a w2 job and my wife also has a w2 job.   I was looking into flipping houses to make more/quick money to build my capital but, the houses are too expensive here in new jersey. Looking to start small and then build up to get better properties.  I have 1 friends that also want to do the same.  We've talked about partnership to look for a houses to flip or to keep as rentals.  I've also looked out of state but, I'm sacred of not living close to the property if something happens and or getting scammed by management company or contractors.  

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Shawn McenteerBusiness Member
Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
1y
Quote from @Frank Martinez:

I'm 44 and been wanting to get into real estate investing for awhile now.  I live in central Jersey and have $14,000 saved.  I have a w2 job and my wife also has a w2 job.   I was looking into flipping houses to make more/quick money to build my capital but, the houses are too expensive here in new jersey. Looking to start small and then build up to get better properties.  I have 1 friends that also want to do the same.  We've talked about partnership to look for a houses to flip or to keep as rentals.  I've also looked out of state but, I'm sacred of not living close to the property if something happens and or getting scammed by management company or contractors.  


 Hi Frank.  Do you currently own a property?  Main Concern I have is funding the deal.  Unless you are veteran you'll likely need do to 3.5% down payment then on top of that have room for closing cost which tend to be over $10K.   There are options of seller providing concession or money towards closing fees but in many cases that makes your offer much weaker in competitive situations.  Having access to some more capital will go a long ways for you. Staying local and doing a house hack strategy tends to be smart move. You need a place to live, may as well be in an asset you own that has portion of it paid by your tenants. 

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  • Mike PaolucciBusiness Member
    Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 504 posts · 556 votes
    1y
    Quote from @Frank Martinez:

    I'm 44 and been wanting to get into real estate investing for awhile now.  I live in central Jersey and have $14,000 saved.  I have a w2 job and my wife also has a w2 job.   I was looking into flipping houses to make more/quick money to build my capital but, the houses are too expensive here in new jersey. Looking to start small and then build up to get better properties.  I have 1 friends that also want to do the same.  We've talked about partnership to look for a houses to flip or to keep as rentals.  I've also looked out of state but, I'm sacred of not living close to the property if something happens and or getting scammed by management company or contractors.  


    Hi Frank. Welcome to BP! I was in a similar position when I got started back in 2021 and living in CA. 

    I ended up employing a property manager to handle the day to day operations, leasing, contractors that is needed to manage the property. The trick is to make sure you find one that you can build a good long-term relationship with. You'll still need to monitor things and review the statements but it opens up doors for investors who can't really invest locally. 

    Happy to share some of my oos investing experiences and mistakes I made. Good luck with your investing journey! 

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  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    1y
    Quote from @Frank Martinez:

    I'm 44 and been wanting to get into real estate investing for awhile now.  I live in central Jersey and have $14,000 saved.  I have a w2 job and my wife also has a w2 job.   I was looking into flipping houses to make more/quick money to build my capital but, the houses are too expensive here in new jersey. Looking to start small and then build up to get better properties.  I have 1 friends that also want to do the same.  We've talked about partnership to look for a houses to flip or to keep as rentals.  I've also looked out of state but, I'm sacred of not living close to the property if something happens and or getting scammed by management company or contractors.  


     Hi Frank.  Do you currently own a property?  Main Concern I have is funding the deal.  Unless you are veteran you'll likely need do to 3.5% down payment then on top of that have room for closing cost which tend to be over $10K.   There are options of seller providing concession or money towards closing fees but in many cases that makes your offer much weaker in competitive situations.  Having access to some more capital will go a long ways for you. Staying local and doing a house hack strategy tends to be smart move. You need a place to live, may as well be in an asset you own that has portion of it paid by your tenants. 

    973-975-3895
    House Hacking New Jersey561 Reviews
    WebsiteView Page
    3Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1y

    @Frank Martinez

    You're in a great spot to start—$14K saved, two W2 incomes, and a motivated partner. Flipping in NJ can be tough with high entry costs, so consider house hacking a small multi-family as a lower-risk entry point. If you're eyeing out-of-state deals, start by building a trusted team (agent, property manager, contractor) through referrals and investor forums before buying. Partnerships are great—just make sure everything is in writing and expectations are clear from day one.

    Good luck!

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  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    Hey Frank, flipping can be tempting for quick cash, but it also comes with high risk, especially in high-cost areas or without experience. You might want to consider starting smaller with a buy-and-hold rental to build steady cash flow and equity over time.

    Out-of-state investing can be a smart move, but it’s all about your team. Vet your property manager well (ask for referrals, reviews, call references) and start in a landlord-friendly area with stable rents. Maybe even look for a light rehab or a turnkey to minimize surprises.

    [email protected]614-490-1163
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  • David Dietzel
    Berkeley Heights, NJ · Member since 2020 · 4 posts · 1 vote
    1y

    @Frank Martinez

    Hi Frank - feel free to reach out. I am in central / northern jersey and own 10 rentals in union and Warren counties so happy to talk

    1Reply
  • Richard Loniewski
    Real Estate Agent · NJ · Member since 2021 · 573 posts · 127 votes
    1y

    I am from Monmouth county and an agent/investor, try going a little south there is more availability and more affordable prices

    0Reply
  • Bernice RetzloffPro Member
    Memphis, TN · Member since 2024 · 234 posts · 100 votes
    1y

    Hi @Frank Martinez!

    Totally hear you, and you're not alone. A lot of people in high-cost areas like Jersey face the same challenge: flips are capital-intensive, and rentals don't cash flow well locally. With $14K saved and a W2 income, you’re in a great position to start small and smart. Out-of-state investing can definitely work! Even for first-timers! If you’re plugged into a trustworthy local team. In a market like Memphis, for example, fully renovated, tenant-ready homes can still be found under $150K, and with reliable property management, it’s very doable from a distance. I get the fear of being far from your property, but that’s where working with the right boots-on-the-ground team makes all the difference. Starting with a solid rental could help you build equity and cash flow safely while you and your friend build experience. Happy to share how others are doing this successfully in Memphis if you’re curious!

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  • Vaughn Smith
    Investor · NJ · Member since 2017 · 786 posts · 396 votes
    1y

    @Frank Martinez you're new to the business. Here are a few things you should not do if getting started 

    -Do not start out of state it looks tempting because of the numbers, but ripping off out of towners is a cottage industry in most towns

    -Do not buy a property with 3.5% down, thats typically for owner occupied deals and it makes properties very hard to cashflow because you have no equity 

    -Do not listen to anyone from outside of New Jersey, they won't understand the market here because to be honest, it makes no sense lol.

    Try this instead:

    - Pick a single strategy you wish to employ and go deep become well versed in it and then start to seek real world knowledge from people in the business

    -Get really good at underwriting the types of deals you're looking for until you can do it almost like a reflex

    -Keep saving $$

    -have your JV partner master funding creative finance and deal structures then teach each other what you learned

    -come back in 6 months or so and you'll be in a much better place

    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1y
    Quote from @Frank Martinez:

    I'm 44 and been wanting to get into real estate investing for awhile now.  I live in central Jersey and have $14,000 saved.  I have a w2 job and my wife also has a w2 job.   I was looking into flipping houses to make more/quick money to build my capital but, the houses are too expensive here in new jersey. Looking to start small and then build up to get better properties.  I have 1 friends that also want to do the same.  We've talked about partnership to look for a houses to flip or to keep as rentals.  I've also looked out of state but, I'm sacred of not living close to the property if something happens and or getting scammed by management company or contractors.  

    Hey Frank, welcome to BiggerPockets! You're definitely not alone — a lot of us started right where you are, working W2s, trying to build capital, and figuring out how to break in without overextending. Honestly, it’s smart that you’re thinking long-term and doing your research before diving in. Flipping in New Jersey can be tough with the high prices and holding costs, and yeah, $14K doesn’t go far there — but that doesn’t mean you’re stuck. You might want to take a closer look at more affordable out-of-state markets where your money can stretch further. I know investing long-distance sounds scary, especially at first — I felt the same way when I started — but it’s totally doable with the right systems and team in place. Columbus, Ohio, for example, is a market worth checking out. I moved here from Portland in 2020 to invest and now own 10+ rentals. The market has strong fundamentals: population and job growth, big companies like Intel, Google, Amazon moving in, and you can still find properties in the $120–180K range that cash flow and hit the 1% rule. Plus, it’s a very landlord-friendly state. If you and your friend team up, you could start with something small and build from there. Long-distance investing just means doing your due diligence, building relationships with agents and PMs, and maybe even flying out once or twice — way cheaper than buying local and getting squeezed. Happy to answer any questions or talk through what it could look like!

    [email protected]614-300-7535
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  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    If you want to start out of state investing, the first thing you should have is a reliable team of a GC, PM, lender and an agent. Happy to share my contacts and experience. Let me know!

    [email protected]614-363-2787
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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    1y

    Welcome!

    Start networking with private and hard money lenders. You'll need them as you get rolling, but hopefully after a few good deals, you'll be using your own money. 

    One issue that jumps out at me from your post is that you say your market is "too expensive." Lots of new investors get intimidated by pricing. Keep in mind "expensive" real estate means higher profits and actual demand. 

    Why do you think properties are cheaper in Cleveland? It's not because there's tons of demand- that's what drives pricing- if lots of people want a property, the price goes up. That's why real estate is more expensive in your area. That means fewer DOM, higher offers and more buyers- those things all mean more profit, too. 

    Best of luck!

    0Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 834 votes
    1y
    Quote from @Frank Martinez:

    I'm 44 and been wanting to get into real estate investing for awhile now.  I live in central Jersey and have $14,000 saved.  I have a w2 job and my wife also has a w2 job.   I was looking into flipping houses to make more/quick money to build my capital but, the houses are too expensive here in new jersey. Looking to start small and then build up to get better properties.  I have 1 friends that also want to do the same.  We've talked about partnership to look for a houses to flip or to keep as rentals.  I've also looked out of state but, I'm sacred of not living close to the property if something happens and or getting scammed by management company or contractors.  


    Frank, the best advice I can give is to invest close to home. ESPECIALLY if it is a flip/BRRRR. If you are okay driving to the property, say once a week or once every 2 weeks to check on progress or make sure everything is good, do it!! After your first couple, OOS is better because lending restrictions can lighten up, you're more familiar, etc. but for your first, do it close to home. At least invest where you have family so they can check on it for you. Or you can visit them and go see it yourself

    [email protected]859-443-4952
    Sam McCormack Realtor
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  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 663 votes
    1y

    I don't recommend getting into RE with 14k.  You will get stretched out triple sometimes.  And that's on a house you bought for 100k.

    You gotta be willing to at least put up 50k and in the first couple losing money is a real possibility.

    1Reply
  • Kristen AmbroseBusiness Member
    Accountant · FL · Member since 2024 · 78 posts · 34 votes
    1y

    Totally get this. Starting small and building smart is the right mindset. Partnerships can help stretch capital and out of state investing can work if your team is solid but trust is everything. A good bookkeeper and property manager are key. Happy to share what I’ve seen work if helpful.

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