Best place to buy rentals

12 Replies

Hi guys, 

I have been away for a few months after harbouring ambitions of getting into fix and flip for several months. Long story short, I don't want to do that any more. I want to buy some rentals in US and invest passively. I do have a very good full-time job. I currently live in NJ. I am looking for ideas on best locations and properties at this point. I think It is going to be remote, since I don't think I have what it takes to invest in Newark, Jersey City, Hamilton and those places. May be states Atlanta, Texas, Memphis etc..Your thoughts please. Also if you have some good deals please bring it into my attention. Thanks a lot.

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Welcome Back :)

There are lots of "deals" out there the key is to figure out what "kind" of rentals you want. I self manage my rentals even from afar. I also want long term cash flow and we have a great W2 income. So we have invested in places that make sense but will appreciate and grow in coming years. On the other hand since we buy class A properties so we can self manage, our numbers don't follow the "rules" but follow my business plan. So it really depends. 

As for deals, the market plea could be the perfect place for you :)

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@Elizabeth Colegrove

Thanks for your insights. Can you define Class A, Class B, Class C properties for me? What s a typical business plan looks like. Where do I start?

@Joe Villeneuve   Thanks. I will include it in my research..

@Abdul R. Why not NJ? Just stay out of the areas you mentioned? The cost to get in can be higher compared to other locations but if done patiently and correctly you can have low vacancy and great tenants.

@Shawn M.   Good question. It is my neck of the woods. But the property taxes are very high. Can we get the numbers working?

As for me I would buy in my own area that I can monitor.

Through the years I have tried other businesses that I was a remote owner and the old adage “when the cat is out the mice will play” came true. Since then I will only buy for rental within my own area (within 45 miles). As a newbie to rentals, I would recommend not rely on others to totally manage the properties without your oversight.And if a property is not easy to look at, drive by or to visit with renters there is all kind of things that could go wrong.

Thanks a lot @Dave Gallogly for that piece of advice. You make a very good point. I will look into NJ as well. Thanks again.

@Abdul R. Taxes are higher but so are the rents. Buying turnkey is tough in Northern NJ but forced appreciation can produce high demand, desirable properties in economically stable location.

I know Delaware is not far from you and has cheap taxes--have you thought about that?

@Abdul R.   @James Wise   Can give you some great information on the Cleveland location, if you are looking out of state. We have done some deals together and he is very knowledgable. 

@Abdul R.  

I suggest looking for investment deals close to your home, maybe 1-2 hours away if prices are too high where you are located. It's always easier to manage and learn the steps of being a landlord and possibly rehabbing a property as your first investment. If you can't find anything close to you then check out BP market place.

Good Luck and happy investing,

Derrick

Experienced NJ investors: What's your opinion about carteret, hopelawn and woodbridge? This is going to be my first rental property. What to watch out for? 

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