Real estate investing in New Jersey is more accessible than ever—especially if you start with house hacking. Whether you’re buying your first property or looking for smart ways to reduce your living expenses, house hacking is a powerful strategy that lets you buy a home and investment at the same time.
Let’s break down what it is, how it works in NJ, and how you can make it happen.
🔍 What is House Hacking?
House hacking is when you buy a home—typically a 2- to 4-unit multifamily property—and live in one unit while renting out the others. The rental income from those other units can help pay your mortgage, reduce your out-of-pocket housing costs, and get your foot in the door of real estate investing in New Jersey.
It’s a popular approach among first-time real estate investors, especially in North Jersey towns like:
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Jersey City
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Newark
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East Orange
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Union City
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Hackensack
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Belleville
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Montclair (outer areas)
House hacking also works with single-family homes that have a basement apartment or in-law suite—as long as there's a separate rentable space.
💸 Why It’s Easier Than You Think
Many buyers assume you need 20% down and landlord experience to buy a multifamily property. The truth? With owner-occupied financing, you can qualify with as little as 3.5% down using an FHA loan.
House Hacking Loan Options in New Jersey:
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FHA 203(b) or 203(k) (renovation loans)
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Conventional loans with 3–5% down
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NJ First-Time Buyer Assistance Programs
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Lenders can often factor in projected rental income to help you qualify for a higher loan amount.
This is one of the few ways to buy a rental and a personal residence—in one transaction, with one mortgage, and one low down payment.
🛠️ Learn as You Earn: Become a Landlord While Living On-Site
One of the biggest benefits of house hacking is that it lets you ease into being a landlord. You’ll get hands-on experience managing leases, maintenance, and tenants—but with the convenience of living on-site.
This helps you:
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Stay on top of the property
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Communicate easily with tenants
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Learn rental management skills in a low-stress way
Think of it as a training ground for future investors—but you’re building equity and cash flow the whole time.
📈 Build Long-Term Wealth in NJ
Once you’ve built some equity or improved the property, you can:
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Move out and keep the property as a full rental
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Use the equity to buy your next property
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Repeat the process and build a real estate portfolio
That’s how so many first-time investors in NJ go from house hackers to homeowners to landlords in just a few years.
🙋♀️ Is House Hacking Right for You?
House hacking isn’t for everyone—but it might be a perfect fit if you:
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Want to reduce or eliminate your monthly housing costs
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Are a first-time buyer interested in investing
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Don’t mind living near your tenants
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Want to start small but think long-term
If that sounds like you, house hacking could be your first (and smartest) step toward financial freedom through real estate.
🚪Ready to Start House Hacking in New Jersey?
From finding the right multifamily property to helping you connect with lenders who understand house hacking, I’ve helped buyers all over NJ start their investment journey the smart way.
Let’s chat about what’s possible for you.
📩 Email: [email protected]
📞 Call/Text: 973-951-8205
📲 Follow on Instagram: @HudsonHomesAndBeyond
“Start where you are. Use what you have. Do what you can.” — Arthur Ashe
👩🏼💻 Gisella Liberati
🏠 NJ Realtor® | The Liberati Group
✨ Helping You Live the Art of Living
