Best Area to Buy First Property

[Lisa Annitti]

Question - If you were a NJ resident starting out investing for the first time with no capital (HELOC is an option), what city would be a good 1st investment where I can generate cash flow and that has good tenant retention? Doesn't have to be NJ but im hesitant about buying site unseen unless some of you guys know a real good bunch of folks I can assemble for a team. Thank you!

Please DO NOT message me with solicitations.

[Nicholas L.]

@Lisa Annitti

hello!  apologies in advance for what is going to sound very negative, but here goes:

-you shouldn't start investing if you have no capital; a HELOC is expensive capital.  you just have to have cash.  and in my opinion, a significant amount of it.

-there's no cash flow anywhere right now in the short term; prices and rates are too high, and there will be MAJOR acquisition and lease-out costs that will take years to pay back.  new investors tend to underestimate these costs... they can be thousands or tens of thousands of dollars.

-you should never buy sight unseen even if you have a team in place.

we just see so many threads in the forums from folks in HCOL areas just like NJ, and when they buy for 'cash flow,' they just get absolutely crushed:

https://www.biggerpockets.com/forums/48/topics/1242392-rough...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

https://www.biggerpockets.com/forums/432/topics/1231840-sell...

https://www.biggerpockets.com/forums/311/topics/840134-memph...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

Failed BRR in Memphis TN

A Cautionary Tale About a Property Manager in Cinncinatti

i'd be happy to connect and dialogue further, and also try to be more constructive.  i just don't want to sugarcoat how difficult the market is right now.

hope this helps!