Home Buying in Jersey City>Question Details

Mike, Home Buyer in Newark, NJ

I'm single and looking to buy a first-time home. I've noticed it would be...

Asked by Mike, Newark, NJ Sun Mar 23, 2008

very expensive to get a 1 BR in downtown JC (where I want to move). Do you think it would be a good idea to go up a little on the price and get a 2 BR so I can pull in a roomate and charge rent to cut down the monthly expenses? Or do you think this is too dangerous?

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Hi Mike,
Getting a roommate is a great way to reduce your costs but perhaps you should have someone you already know in mind and be sure in advance that sharing will be beneficial and work out long term. Getting roommates through craigslist or newspaper ads may be risky since you are living with a stranger. Should you buy a 2 bedroom that's over your budget on your own and have no one to share it with you could be in over your head and hurt your financial status & credit report. Maybe rent in JC first so you can get to know some people you'd be able to live with happily and then move forward.
1 vote Thank Flag Link Sun Mar 23, 2008
Mike, talk to your lender first. Some lenders will allow you to count the potential rental income when calculating your loan amount, so you can buy a bigger and better house. It usually--not always--makes your portion of the monthly mortgage amount less when you have a renter in the home. It depends on how much rent you can reasonably charge him.

The other big question is, are you comfortable being a landlord/roomate?

Best wishes, and let me know how it works for you!
0 votes Thank Flag Link Sun Mar 23, 2008
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