Need help with investment locations.

[Mike Nowa]

Good Afternoon all!   I am a licensed real estate agent in NY and I’m looking for my first investment property.  I saved enough for a nice down payment.  Looking at homes no more than 200k.  Where I live the market is extremely high and will be a no go for investing.  I have looked at different markets from Atlantic City, Hartford, Newburgh, Waterbury, Syracuse.  I am open to all suggestions.   How far should my first rental be from me.  I wanted something close but that seems very far fetched at this point. Thank you in advanced!

[Nicholas L.]

@Mike Nowa

I like within driving distance.

Will you hire a PM?

[CJ M.]

@Mike Nowa

There are many successful out of state investors, but my feeling, take it or leave it, is invest in your backyard. You know the market, can inspect things to your standard, and can be at the property in case of emergency.

There's already soooo much risk in this business, why add more risk by investing somewhere you can't even get to quickly?

[Mike Nowa]

I would Hire a PM depending on location.  I agree investing in the backyard is the best thing to do.  Only issue is the market around me is absolutely insane right now.  Whats the maximum distance from me I should be looking?

[Eliott Elias]

Killeen Texas may be a good market for you 

[Nathan Gesner]

Quote from @Mike Nowa:

If you insist on managing it yourself, then I suggest no more than an hour away. If you can buy something farther, you should consider investing in states that are fair to Landlords and more affordable.

[Mike Nowa]

Quote from @Eliott Elias:

Killeen Texas may be a good market for you 

Are units renting for a decent return here?

[Mike Nowa]

Quote from @Nathan Gesner:

Quote from @Mike Nowa:

If you insist on managing it yourself, then I suggest no more than an hour away. If you can buy something farther, you should consider investing in states that are fair to Landlords and more affordable.

I’m not sold on managing the property myself but if it’s close enough I would certainly consider it.  I think looking outside my area I’ll get a better deal.

[Georgeanna Tracey Newmones]

Hi Mike, congratulations on your agent status and your hunger to invest. The Atlantic City market is an excellent start for new investors. Specifically, the price pool is much lower than in NY and North Jersey. You can purchase either multi-family, condominium, or SF. The $200,000 may be a little stretch for MF, but not out of the question. Keep in mind the properties in or around the AC market will be older and may require TLC; however, you have to be "in it to win it"......Just jump! You will make mistakes initially; however, they will be instrumental in growing your investment portfolio. I would love to jump on zoom and assist you (as a colleague and an agent). I am familiar with the AC market as a Licensed Broker-sales person, and I own property (both STR/LTR) in and near the area.

[B.R. Marshall]

@Mike Nowa

Houston, TX is great for investors. It's growing like a weed as people continue to migrate here in big numbers from places like California. It's still one of the most affordable cities in the U.S. Feel free to direct message me if you'd like to just have a conversation.

B.R.Marshall

[Eliott Elias]

Quote from @Mike Nowa:

Quote from @Eliott Elias:

Killeen Texas may be a good market for you 

Are units renting for a decent return here?

 Yes they are, nearly meeting 1% rule on fourplexes 

[Stephanie P.]

Quote from @Mike Nowa:

Good Afternoon all!   I am a licensed real estate agent in NY and I’m looking for my first investment property.  I saved enough for a nice down payment.  Looking at homes no more than 200k.  Where I live the market is extremely high and will be a no go for investing.  I have looked at different markets from Atlantic City, Hartford, Newburgh, Waterbury, Syracuse.  I am open to all suggestions.   How far should my first rental be from me.  I wanted something close but that seems very far fetched at this point. Thank you in advanced!

 We're seeing numerous secondary markets where cash flow is still strong; particularly on multi family properties. Like @Nathan Gesner said, I would get a property manager if you're more than 1 hour from the property.   I had a property that was 2.5 hours away and those calls for a blown fuse or stopped up toilet on the weekend are brutal.

[Anthony J Campanella]

You may want to look into the Albany / Capital Region market. 

What type of property are you looking for? 

[Akshay Nihalaney]

Hi @Mike Nowa - I live in NYC and invest in Albany. It’s about 2.5 hours drive. 
you can certainly find a single family and even a 2-family (bit of a stretch) there which could cash-flow. 
I had to drive up there several times a month when I started last year to set up my team. I now go there once in 2 months (unless I have some renovations in progress, for which I go more often).

Looking back, I don’t think I could’ve have done this with out of state investments (I had considered San Antonio). I know a lot of people do out-of-state, but it does take a certain type of personality, especially when you’re just starting out. 

Hope this helps. Good luck!

[Polo Vazquez]

Hey Mike! Here in the McAllen/Edinburg/Mission Texas area we are getting a lot of out of state investors. We have a good combination of lower property prices, high rental demand and inexpensive labor (lower maintenance costs) that have attracted a lot of people. The area is also growing exponentially. Purchasing fourplexes as investments has become popular by out of state investors recently as well. You should consider it and look into it.

[Ruchit Patel]

Why don't you invest out of state? It's in the trend and so it's been easier than ever before due to sheer support from people providing turnkey deals.

[Sam McCormack]

@Mike Nowa

Hi Mike, you could find a good property for under 200k in Cincinnati/NKY. I would say a duplex or SFH! Let me know if you are interested in either of these markets!

[Aj Parikh]

HI Mike, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

[Steven Foster Wilson]

Quote from @Mike Nowa:

Good Afternoon all!   I am a licensed real estate agent in NY and I’m looking for my first investment property.  I saved enough for a nice down payment.  Looking at homes no more than 200k.  Where I live the market is extremely high and will be a no go for investing.  I have looked at different markets from Atlantic City, Hartford, Newburgh, Waterbury, Syracuse.  I am open to all suggestions.   How far should my first rental be from me.  I wanted something close but that seems very far fetched at this point. Thank you in advanced!

Hey Mike,

 
I suggest taking a look at the market in Ohio, you'd be able to pick up a multifamily portfolio and start your cash flow. Ohio is a very landlord-friendly state.


The price to rent ratio makes for great investments. Not to mention our appreciation has been 8% higher than the US national average, because of the high demand for affordable housing.

[James Wise]

Quote from @Aj Parikh:

HI Mike, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

Mike,

I'm not really in the biz of saying go here or go there. It's not my bad. But, having sold more than $200 million in Cleveland real estate to out of state investors, I can definitely tell you that if you end up looking at Cleveland, you need to be reading The Ultimate Guide to Grading Cleveland Neighborhoods.

It's true lots of money can be made here, but a lot of it can be lost as well. The biggest mistake I see out of state investors make here in Cleveland is buying solely based on low price. There is more to it than that. You've got to understand the level of risk some of these Cleveland neighborhoods have. The guide should help you measure that.

[Lori Williams]

I would recommend working with a partner if you're going to do out of state. There are a lot of ways to structure the partnership, but by doing so, you'll have a LOCAL person as part of the project.

I invest strictly in a very small neighborhood in Youngstown, OH. We are at 2%+ with DSCRs of 2-4. We are less expensive overall than Akron and Cleveland, and if you buy in the right area, you will have an excellent ROI.

PS: we do not do section8 or low income. We rent to professionals.

[Nate Monson]

Hi @Mike Nowa to answer your question on whether you "should" invest out of area is more of a personal question on how comfortable you are with risk. But if you have the right team around you it can be a relatively low risk proposition. That being said I am in the Albany, NY market, if you'd like some info about this market please don't hesitate to reach out.