From MarketWatch:
Buying your first home? Consider a duplex…
The best first home may be a multi-unit home, because having tenants pays off.
Duplexes — a single building with separate units and entrances — are among the least popular homes to buy in the U.S. Only 2% of first-time homebuyers purchased a duplex in 2016, according to the National Association of Realtors, an industry group, compared to 82% of those who bought a detached single-family home. Other options included condos in five-plus unit buildings and townhouses.
Purchasing a home with multiple units, where you live in one and others live next door, upstairs or downstairs, has its perks: mainly, their rent is contributing to your mortgage, you don’t get to share a bathroom and kitchen with your tenant and you’re close by if anything goes wrong. Depending on the number of units or the cost of rent you’re charging, you could also end up making a profit. “If you look at the size and cost of the units, they dovetail with what a first-time homebuyer can afford,” said Dennis Cisterna, chief revenue officer of Westminster, Colo.-based real estate investment site Investability.
Being a first-time homebuyer and landlord goes well together, especially if they live on the same property as their tenants. New homeowners are likely more flexible about their living arrangements, without too many other heavy responsibilities such as children and more attune to the maintenance needed for the property, said Jeremy Gulish, a real estate agent in Morristown, N.J. Meanwhile, they’re able to prepare for the next property they get and have the opportunity to keep the first property as supplemental income, he added.
Using your tenant’s rent as additional income can allow you to qualify for a pricier home. In some cases, you can put down only 5% and get a mortgage from a private lender versus a bank, said Ray Rodriguez, a regional mortgage sales manager at TD Bank in New York. “While they will increase the amount you will write [on the check], it allows them to get into a home,” he said. A third of potential first-time homebuyers did not put down 20% or more, according to a TD Bank survey of 1,000 participants.
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Still, it’s not impossible. When Gulish was buying his first home with his wife, they opted for a two-family. At the time, they were in their mid-20s and qualified for a large property at the top of their budget but with a tenant who paid more than half of their mortgage. “Sometimes it’s a leap of faith,” he said.The most important thing to do, Gulish said, is find the right tenant. Also, ensure you have enough in your emergency funds to take on unexpected scenarios, even if you’re handy at home, said Ash Exantus, a financial empowerment coach a BankMobile, a New York-based banking app. Prepare to have serious conversations, such as rent hikes, Scepanovic said, and know the rules in your area, such as mandated heat requirements. Also be ready to show the home and place its availability on sites renters search as soon as you learn your tenant is moving out, Cisterna added.
And what’s your definition of these suburbs you speak of. I would argue that the entire northeastern section of jersey would be considered city in most of America. I’m just at the very edge of this city we call NYC that continues to expand in every direction in its evolution.
Polish Future says:
December 26, 2016 at 11:09 pm
Spambots endorse the Lost Plumpskin. The truly stupid will inherit the suburbs and Plumpskin has planted the flag. Plumps is a vast nucleation site for intelligence, thought, and culture.
The Northeast Megalopolis is the wealthiest, most productive, highest earning, best educated place in the entire world. Not to mention the most urbanized place in the United States.
https://en.wikipedia.org/wiki/Northeast_megalopolis#/media/File:Boswash.png
2% of the US by land area generates more than 20% of it’s GDP, and 20% of the US population. Economically, this is the most important place in the entire world.
The amount of infill development in the next 30 years will turn the Northeast Megalopolis into what could be considered one giant city. Population forecasts have the NEM growing by about 12 million by 2025, roughly a 20% increase in population since 2010.
So while I like to insult pumps, I’ll echo his question, what suburb? When we are talking about the re-urbanization of America, I’m pretty sure we’re not talking about Cleveland’s astronomical rebirth.
I could leave my house in shithole Wayne, and walk all the way to midtown Manhattan, and never leave what would widely and unequivocally be considered “City” across 99% of the United States.
I mean, realistically, 17 of the top 50 US Cities by population density are in NJ, including numerous towns that would widely be considered “suburbs” to us here.
Meanwhile you have cities like Nashville, which span more than 500 square miles, which has a population density lower than the ENTIRE STATE OF NJ, even all the empty spots in the middle.
I mean, hell, the “City” of Bergen County is nearly 50% larger than Nashville by population, despite being HALF the size (247 square miles vs the 526 square miles that define “Nashville” proper). I’m not even talking about the broader Nashville MSA – which spans a ridiculous SEVEN AND A HALF THOUSAND SQUARE MILES, which is damn near the size of the entire State of NJ.
what empty spots?
grim says:
December 27, 2016 at 8:54 am
Meanwhile you have cities like Nashville, which span more than 500 square miles, which has a population density lower than the ENTIRE STATE OF NJ, even all the empty spots in the middle.
NJ’s state forests and parks, which easily consume more than 10-15% of land area, and are either completely or are largely unpopulated.
Eff Nashville, Bergen County’s population density is greater than Atlanta’s.
City of Dallas
Population – 1.3 million
Area – 386 square miles
Density – 3,367 per sqmi
Bergen+Passaic County
Population – 1.4 million
Area – 443 square miles
Density – 3,160 per sqmi
Just for comparison’s sake.
Translation: without pumpkin (who I assume is “Lost”) I would have no life since even though I claim to have zero respect for him, I can’t help but to continually harp on and internalize every word he writes.
Polish Future says:
December 26, 2016 at 11:09 pm
Spambots endorse the Lost Plumpskin. The truly stupid will inherit the suburbs and Plumpskin has planted the flag. Plumps is a vast nucleation site for intelligence, thought, and culture.
Or…
Bergen + Hudson
Population – 1.6 million
Area – 308 square miles
Density – 5,194 per sq mi
This would be the 6th largest city in the USA, slightly larger than both Philly and Phoenix.
chicagofinance says:
December 27, 2016 at 9:27 am
what empty spots?
Fun fact: in some top towns you can still find older houses on close to an acre, tear it down and build 2-3 in its place.
Also, that sliver of trees you saw wedged between the train tracks and the highway’s concrete noise barrier? It’s just a building lot waiting to happen.
Or just to be really fun, Bergen+Passaic+Hudson+Union is the 4th largest City in the US, surpassing Houston.
Bergen, Passaic, Hudson, Union
Population – 2.6 million
Area – 610 square miles
Density – 4,262 per sqmi
Houston
Population – 2.3 million
Area – 599 square miles
Density – 3,839 per sqmi
I guess it’s a boring morning.
Hell, I forgot Essex, now we give Chicago a run for it’s money, and start to creep up on Los Angeles.
And, all this time, I didn’t include a single square inch of NY City.
NJ’s sleepy suburbs really the 4th largest city in the US.
Close enough that …. We even get a contact buzz from NYC…..
Buzz? The Northeast Megalopolis is like 2.8 trillion in GDP.
Making it a larger economy than say, all the of United Kingdom.
All of France.
All of India.
All of Italy.
All of Brazil.
All of Canada.
All of Russia.
All of Australia.
It would be the 5th biggest country in the world by GDP.
Even the oft quoted California as one of the largest economies in the world.
NEM is bigger than that, and a fraction of the size.
The Northeast Megalopolis is like 2.8 trillion in GDP.
Doing our part to make America great again! ;)
Thank you for supporting the guy nobody likes. I hope with all the stats you have posted this morning, it will help people to realize northern nj is not dying anytime soon, and if it is, that means the world economy is getting knocked down too.
“So while I like to insult pumps, I’ll echo his question, what suburb? When we are talking about the re-urbanization of America, I’m pretty sure we’re not talking about Cleveland’s astronomical rebirth.”
And I know I always support jersey, but I’ll take any location inside this northeast megalopolis. The closer to the heart I am, the better, but I’ll take anything inside this economic powerhouse to live and make my money. After money is made, who knows where I’ll live, but if I have one to life to get this, I’m picking this economic hub to make my money. Need to give myself the best odds possible.
People truly take it for granted. All they do is complain about the costs while ignoring the enormous economic opportunity if you are a go getter. Stop bitching about the high property taxes and go get some, otherwise, leave, and admit you can’t handle the competition this area brings to you. Clearly the costs are telling you to leave….that this game is for the big boys…the real competitors of capitalism.
Just like sf area, if you aren’t built (skills) or ready for an intense game of capitalism, don’t move there. All you will do is complain about the cost of living and how you are going nowhere…how you are better off in a cheap location where you get more for your money. And I agree, go where it’s easier for a low skilled individual to work and play. Don’t come to the big boy markets if all you are going to do is complain about the cost.
grim says:
December 27, 2016 at 10:09 am
Hell, I forgot Essex, now we give Chicago a run for it’s money, and start to creep up on Los Angeles.
And, all this time, I didn’t include a single square inch of NY City.
NJ’s sleepy suburbs really the 4th largest city in the US.
You have one of the biggest egos in the world……..
Grim says:
December 27, 2016 at 11:12 am
Even the oft quoted California as one of the largest economies in the world.
Lost it’s all about competitiveness, the metro region is strong, NJ is just the weakest member of the bunch, followed by CT. Our economy has not grown at the same pace as our neighbors when historically NJ outperformed it’s neighbors.
OK so that is impressive. I knew something was going on around here. Now break out that number from the under the table/cash only market. Oh Lord, you are talking Yuuuuuuge here.
Buy now or forever be priced out …..When Assets (Such As Real Estate) Become Liabilities…http://www.zerohedge.com/news/2016-12-27/when-assets-such-real-estate-become-liabilities
Changing my tag line, in honor of JJ’s return…
So when the US becomes Coruscant, it will have all started here.
Great.
Buttocks {yesterday];
It’s funny that you cite GDP growth as a success of Obama’s. He’s the first president in history not to deliver even a single quarter of 3% growth.
Stimulus, you say? The graph that keeps on giving. Even a weatherman who got his prediction this wrong should be fired.
“we could have been a lot lot worse.”
That’s an excuse, not an explanation.
[Fixed link]
Buttocks [yesterday];
It’s funny that you cite GDP growth as a success of Obama’s. He’s the first president in history not to deliver even a single quarter of 3% growth. Most people would consider that a failure — but you’ve drunk the Kool Aid.
Stimulus, you say? The graph that keeps on giving. Even a weatherman who got his prediction this wrong should be fired.
“we could have been a lot lot worse.”
That’s an excuse, not an explanation.
So NJ and CT are adjacent to the heart of the great New York economy. They are the armpits I guess? On the way down here we stopped at White Castle (Piaget). Getting off at route 80 instead of coming South down Lakeview, I came South on Main Ave. The Arabic/Mediterranean businesses really looked to be thriving and the whole area looked pretty good North of Crooks Ave.
Armpit and thriving economy are not mutually exclusive!
Like the article Grim. It’s like we wrote it.
Moose,
That’s like saying the guy didn’t win the race he only came second. It omits the fact that he started from the back of the pack!
Here are the numbers, mostly good a few bad. Overall from where he started, a good job.
http://www.factcheck.org/2015/10/obamas-numbers-october-2015-update/
http://www.oddee.com/item_96876.aspx
https://ofjessandjen.wordpress.com/tag/armpit-of-america/
https://www.bloomberg.com/news/articles/2016-12-27/outrage-over-the-economy-doesn-t-explain-surging-global-populism
https://www.bloomberg.com/news/articles/2016-12-27/holiday-sales-may-have-jumped-4-9-in-biggest-gain-since-2005
Lost boy in Wayne found on wandering on busy road, mumbling about how close he is to New York City.
…Tells cops he pays for them with his taxes, calls male officer sugar t1ts.
Climateers Can’t Handle the Truth
Lee Raymond’s 1997 climate speech in China is looking better than ever.
http://www.wsj.com/articles/climateers-cant-handle-the-truth-1482882375
If NJ is armpit, Mass is the taint.
NJ ranks higher in income and GDP.