Best Area to Buy First Property

Starting Out
9moFollow

Best Area to Buy First Property

Lisa Annitti
Member since 2025 · 14 posts · 16 votes

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.

8Reply
394 views

Most Popular Reply

Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
9mo

@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!

6Reply
See this reply in the discussion

18 Replies

Jump to latestLatest
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    9mo

    @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!

    6Reply
    • Alan AsriantsBusiness Member
      Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
      9mo
      Quote from @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!


       This is great advice and I would value this highly...

      HELOCs should really not be used for long-term investing. They should only be used in a situation where you can put your money in and take your money out. HELOCs are always subject to rate increase in rate changes sometimes for the better, but also for the worse. 

      If you were looking at a flip nearby where you could put your HELOC money act as a bank and then sell it and recuperate your profits as well as your HELOC money then that makes total sense.

      Also, if I were you, I wouldn't invest in neighborhoods I know nothing about. The best neighborhood to invest in is the neighborhood you know well. 

      Don't take this the wrong way, but it seems that you are very new to this which is OK don't dive into some thing because someone sold you something pretty. Get in touch with a local agent that is reputable in your area - area you want to buy in. 

      I am happy to connect as well and go over some pointers with you. best of luck!

      [email protected]267-767-0111
      Alan Asriants - New Century Real Estate 591 Reviews
      View Page
      0Reply
  • Lisa Annitti
    OP
    Member since 2025 · 14 posts · 16 votes
    9mo

    Thank you for your feedback and that was honest not negative. My first goal was 3-5 years but you listen to the podcasts and you always here now is the time and you can use the bank's money! I actually just started buying shares in Real Bricks just so I can get my toe in the water 

    0Reply
  • Leonard La Rocca III
    Investor · Monmouth County, NJ · Member since 2023 · 14 posts · 5 votes
    9mo
    Fellow beginner here. Someone replied to a post I made similar to yours, they said ‘NJ isn’t for the faint of heart’ in terms of the price to entry. That stuck with me and I repeat it in my head as I do comps for Fix & Flips in Monmouth County.
    0Reply
    • Leonard La Rocca III
      Investor · Monmouth County, NJ · Member since 2023 · 14 posts · 5 votes
      9mo

      @Leonard La Rocca III that to say, I chose to focus on the area I know best and stacked capital through the stock market in 2024/25. 

      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    9mo
    Quote from @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.


     Best area is in your own backyard, where you can better monitor costs and do much of your own work to control expenses.

    Going OOS brings LOTS of risks!

    Most of the success stories you see here about OOS = are from 3+ years ago when a rising market covered a lot of mistakes.

    The best way to use your HELOC would be BRRRing an ugly property that can't qualify for a traditional mortgage => this cuts down competition which lowers purchase price.

    Buy right and do a lot of the rehab work yourself and you MIGHT be able to do a cashout refinance and get most your HELOC money back out.
    - But then it may not cashflow at today's mortgage rates:(

    Why can't you save money?

    [email protected]248-209-6824
    Logical Property Management4.9459 Reviews
    WebsiteView Page
    2Reply
  • Lisa Annitti
    OP
    Member since 2025 · 14 posts · 16 votes
    9mo

    I am saving money lol Who said I wasn't? I have automated savings goung in each paycheck; however it's going to take quite a while to save a down payment. 

    I have a pension job too. But I cant get the pension til im 65. Im 50. Not really interested in staying where I am another 15 years. Im hoping I can get properties in the next 3-5 years

    0Reply
  • Mike Whitman
    Member since 2019 · 41 posts · 22 votes
    9mo

    I just closed on my first rental property. It's a duplex out of state.  I live in CT, I bought in PA.  CT's real estate is just way overpriced (in my opinion) and it's tough to justify rents to cover your expenses (the same duplex I just bought in PA would be double the price in most parts of CT). So...OOS it is.

    If you have time to investigate different locations, go visit them.  There are a lot of realtors on BP in different areas. I've talked to some in OH, PA, TN. I would suggest using the pick markets tool at the top of the tool bar to help you narrow down where you may want to look. It doesn't need to be across the country.  I can reach my property in 3.5 hours and I have contractors lined up locally that in an emergency someone can be there before me.

    HELOC versus a 1st lien mortgage: what's your HELOC rate? 8.5-ish? A mortgage will run about 7 1/8 - 7.5 +/-. Doesn't sound like a big difference for cost of capital, but when you look at the interest you'll pay on a 30 year mortgage, there's a big delta even if it doesn't move the needle much in the monthly payment. Be ready for a lender to ask what the source of the down payment is though, which may be a problem if you're borrowing it, then you're a 100% leveraged.

    Not to share too much information, but think about how much you are saving today and then once you narrow down your target area how much will you need for a down payment?  For instance, if it's $50/month and looking only in NJ, it'll take you forever to get there.  If it's $1,000 a month and you're looking OOS in DE or PA somewhere, you'll get there much faster.

    If you haven't yet, I'd also recommend listening to the Real Estate Rookie podcast.  They have some great episodes on how to get started.

    Feel free to DM me if you have any questions.  I'd be happy to share my experience.

    1Reply
  • Kiernan LaFaver
    Real Estate Agent · Central New York · Member since 2023 · 207 posts · 96 votes
    9mo

    I'm an agent in the Syracuse NY area, so just a few hours north of you! I've had clients from NJ, MA, CA, and FL mention that the prices of Syracuse and the surrounding suburbs are peanuts compared to what they could buy for the same price in their respective location. Both the city and suburbs present a tremendous amount of opportunity, both with their pros and cons. Both are appreciating in the 8-13% range, which is the cherry on top of any cash flow. Cash flow tends to be higher in the cities where both SFH and MFH are common. "Ready to go" SFH and MFH range anywhere in the 150-300K range and the area is quickly becoming a technology and retail hub. Would be happy to discuss any sort of opportunities that the area has to offer. Happy investing!

    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    9mo
    Quote from @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.

    Hi Lisa, great question and welcome to BP. If I were starting from NJ with little to no capital and using a HELOC, I'd focus on a market where cash flow actually works instead of forcing deals locally, and Columbus Ohio would be at the top of my list. For a first investment you want affordability, stable tenant demand, and a market where you can still hit the 1% rule without getting overly aggressive, and Columbus checks those boxes. The macroeconomics here are on fire with strong population growth, steady job growth, and major companies moving in like Intel, Amazon, Google, Facebook, Honda, Microsoft, LG, Nationwide, Anduril, etc., which helps with tenant retention and long-term stability. You can still find single families in the 120–180k range that cash flow well, even with conservative rents, and Ohio is very landlord friendly compared to NJ. A lot of out-of-state investors do really well here by building a solid local team and buying conservatively. Site unseen is definitely doable when the numbers make sense and the market fundamentals are strong, and Columbus gives you both cash flow today and solid appreciation upside long term. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    0Reply
  • Lisa Annitti
    OP
    Member since 2025 · 14 posts · 16 votes
    9mo

    I read about Ohio. Thanks for the feedback 

    0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 941 votes
    9mo

    @Lisa Annitti

    If I were starting from NJ with limited capital, I'd look to the Midwest where entry prices are lower, cash flow is more achievable day one, and tenant retention tends to be stronger when you stay in working class, owner-occupied style neighborhoods. The key is boring, stable housing, modest rehabs, realistic rents, and conservative leverage using something like a HELOC. Buying sight unseen can work if you build a tight local team, inspections, walkthroughs, and clear underwriting matter more than chasing appreciation early on.

    [email protected]614-418-6081
    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    9mo
    Quote from @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.

    Most of the markets in the Midwest will be a good option for you if you're looking for an easy entry, cash flow and a stable appreciation. Ohio is one of them. Happy to help!

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    1Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    9mo
    Quote from @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.


     The midwest is a safe bet because most states are landlord friendly. I'd look into Ohio, and from there you have a couple of different cities that offer different returns.

    Columbus is great for equity plays and appreciation. Cleveland is great for cashflow. Dayton is more about affordability and stability.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 536 Reviews
    WebsiteView Page
    0Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    9mo

    Great question, Lisa! From what I’ve seen, parts of the Midwest tend to work well for first deals because entry prices are lower, rents still support cash flow, and tenant retention is stronger in working class neighborhoods. HELOCs can be a solid bridge if you’re disciplined on numbers and reserves. The bigger key with out of state is less about the perfect city and more about the team: a boots on the ground property manager, a contractor you trust, and realistic expectations on returns. Once that’s in place, buying remotely feels way less risky. Happy to keep the conversation going!

    [email protected]614-412-2912
    Reafco.512 Reviews
    View Page
    0Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    9mo

    Hi Lisa,

    If you're looking to get started without much capital, consider a joint venture (JV) with an experienced investor. You can offer value like managing the property, handling tenant relations, or overseeing maintenance, but make sure you're upfront about what you know and how you'll handle it. This way, you build hands-on experience and capital while your partner provides the funding, giving you a real foot in the door without a huge upfront investment.

    Good luck!

    0Reply
  • Robert Young
    New to Real Estate · Richmond, VA · Member since 2014 · 29 posts · 5 votes
    8mo

    @Nicholas L.

    Been looking for people like you for guidiance and support.. If I find any tired Landlord or any abandon properties can you guide me through?

    0Reply
  • JooYung Choi
    Realtor · NJ · Member since 2023 · 215 posts · 99 votes
    8mo

    The traditional long term rental cash flow in NJ is indeed a tough challenge given the high cost to entry and property taxes. I invest in NJ more for the appreciation potential. I believe holding real estate in NJ will pay off far more than the rental cashflow I could have accrued elsewhere (except STRs).

    Currently, all my investments in NJ are MTRs. It solves the cashflow problem AND you get the benefit of NJ appreciation. More work, more time, more stress BUT more money! 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free