New York City, NY · Member since 2016 · 37 posts · 8 votes
I'm looking for some great areas to invest in within a 3 hour radius from New York. Frankly it's too expensive over here and I'm itching to get in.
How's Pennsylvania or Connecticut?
Any advise is much appreciated
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
10y
I'm sure there are a lot of areas to invest in, i am investing in PA right now. Some might depend on the niche you are going after, buy and hold, flip, wholesale, etc. have you thought of student rentals ? PA is loaded with colleges. you looking for SFH or complex ? where ever you invest there are good and bad areas, it's just a matter of doing your home work.
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
10y
I'm sure there are a lot of areas to invest in, i am investing in PA right now. Some might depend on the niche you are going after, buy and hold, flip, wholesale, etc. have you thought of student rentals ? PA is loaded with colleges. you looking for SFH or complex ? where ever you invest there are good and bad areas, it's just a matter of doing your home work.
Investor/Attorney/Realtor · Avon, CT · Member since 2016 · 27 posts · 9 votes
10y
Connecticut has some good areas. the city of hartford is improving. they've put a lot of investment dollars into downtown and trying to make it a more relevant city. it's still a little risky because hartford still has a ways to go, but check it out. you might find a diamond in the rough for a buy and hold. taxes are a bit on the high side but it can't hurt to look.
Rental Property Investor · San Diego, CA · Member since 2015 · 107 posts · 37 votes
10y
I have absolutely zero experience investing in PA but I know those that do and have great success with it. I for one choose to stay close to where I live but if I wanted to reach beyond local properties I would look deeply into PA. The majority of CT is an appreciation market, if you want cash flow there are a few areas which you will have to focus on. Generally the more heavily populated cities can have some good opportunity; Stamford, Bridgeport, Waterbury, New Haven, Hartford etc.
Good luck!
I don't have any experience in the PA or CT markets. However, I do know that both Indiana and Ohio have some great investment opportunities. Obviously that would be over 3 hours from where you're at but I wouldn't rule them out completely without taking a look.
My personal experience is in the Cleveland market. Cleveland is experiencing a renaissance that is unprecendented and the city is full of opportunity.
Best of luck to you in your investing endeavors! Feel free to reach out to me with any questions. I'd be happy to help in any way I can.
New York City, NY · Member since 2016 · 25 posts · 15 votes
10y
wow great post.. I'm from new York but having trouble looking for areas to invest in. I wouldn't want to be to far so I was looking into new Jersey, Pennsylvania and surrounding areas.
Investor · Seattle, WA · Member since 2016 · 73 posts · 37 votes
10y
@Adam Bontrager- can you elaborate on "Cleveland renaissance"? I was looking for reasons to invest in Cleveland market, but just can't justify it with what's happening in the area. The population decreased drastically since 2000, although the decline seems to have stopped in recent years. Housing sales dropped by 50% since early 2000's. With reduced population, I expect there is a lot of inventory which drives rental prices down and increases vacancy rates. Where in your opinion the new growth will come from?
@James Wise- thanks for the link to the neighborhood analysis. It doesn't look like your map covers the east side. Where would Richmond Hts, Highland Hts, Mayfield Hts, Lyndhurst, Pepper Pike and Gates Mills fit in it?
@Adam Bontrager- can you elaborate on "Cleveland renaissance"? I was looking for reasons to invest in Cleveland market, but just can't justify it with what's happening in the area. The population decreased drastically since 2000, although the decline seems to have stopped in recent years. Housing sales dropped by 50% since early 2000's. With reduced population, I expect there is a lot of inventory which drives rental prices down and increases vacancy rates. Where in your opinion the new growth will come from?
@James Wise- thanks for the link to the neighborhood analysis. It doesn't look like your map covers the east side. Where would Richmond Hts, Highland Hts, Mayfield Hts, Lyndhurst, Pepper Pike and Gates Mills fit in it?
Stan,
Check out this article written last year about Cleveland and the downtown area, the college educated population change versus overall population change and the great press Cleveland is getting on a national level. http://www.citylab.com/work/2015/06/how-millennial...
Simply looking at the overall numbers does not give you a clear indication as to what is going on in any market. Cleveland is actually a very nice sellers market right now, and for someone that works with buyers, sellers and investors, I can tell you that Cleveland is hotter now with home sales than many other markets across the country.
While the overall population in certain areas of the region might be in decline, the actual population of the younger, college educated professional in Cleveland is growing, and at a very nice rate. Other studies have been conducted that show that the younger millennials are not as eager to purchase homes and would rather rent than be tied to anything. This bodes incredibly well for landlords looking for higher end clientele in nicer areas.
As for the map that @James Wise posted, we do not manage property in those areas, so we do not grade them. We have also found that many of those areas are very spotty, and you can have one very nice street and the next is literally trash. This can make investing in these areas incredibly risky, which is not what we are attempting to accomplish for our out-of-state investors.
CT has some great markets for investors. Fairfield County towns like Stamford and Norwalk will have more multi-family opportunities than some of the smaller towns around here, but while they'll be more expensive than other areas of CT they're still cheaper than buying in NYC or the boroughs. If you're willing to go a little more than an hour then you could look into areas like New London, Hartford, and New Haven. You'll get a lot more for your money there and have better cash flow potential.
You've got a lot of research ahead of you, but it will be worth it once you get that first deal!
@Adam Bontrager- can you elaborate on "Cleveland renaissance"? I was looking for reasons to invest in Cleveland market, but just can't justify it with what's happening in the area. The population decreased drastically since 2000, although the decline seems to have stopped in recent years. Housing sales dropped by 50% since early 2000's. With reduced population, I expect there is a lot of inventory which drives rental prices down and increases vacancy rates. Where in your opinion the new growth will come from?
@James Wise- thanks for the link to the neighborhood analysis. It doesn't look like your map covers the east side. Where would Richmond Hts, Highland Hts, Mayfield Hts, Lyndhurst, Pepper Pike and Gates Mills fit in it?
Those are all very nice suburbs. Pepper Pike & Gates Mills are probably just as expensive if not more expensive then a lot of the areas you live by. Gates Mills in particular is filled with multi million dollar estates.
@Adam Bontrager- can you elaborate on "Cleveland renaissance"? I was looking for reasons to invest in Cleveland market, but just can't justify it...
Absolutely! Cleveland's culture is really budding. The city has gone through a rough patch but we've come out stronger than ever before. There's still work to be done but Cleveland residents are proud to be a part of "The Land". We're proud of where we've come from and where we see the city going.
The downtown area has really seen a resurgence of culture and activity. LeBron returned to Cleveland and the Cavs have one of the best lineups they've ever had. We're seeing a lot of young college graduates move into the area, attracted here by the jobs and the revitalized culture. Young people want things to do and there's no shortage of that here in Cleveland
In the areas I work in, both rents and demand are high. There's plenty of tenants in the market and vacancies are filled quickly. In short, the stage is set for investors in the coming years.
Scranton, PA · Member since 2016 · 201 posts · 44 votes
10y
I live in base my business out of northeastern Pennsylvania. 15 to 25% rental cap rate after maintenance ,vacancy and management are deducted with a per unit investment after renovation of under $35,000. I
Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
10y
@Stan K.If you want to see where a good amount of Cleve's population went, look at the gain of the surrounding counties at the last census. Medina, geauga, summit, etc.
so while yes it has declined, the number who have left the area is less than the headlines may read.
And I am from the east side originally. Pepper and Gates Mills are higher end older homes, generally (70-80's ish). More money than many expect to see in Cleveland if they are expecting cheap houses. Very small little towns, high taxes. Richmond heights is the weakest of the others. I consider highland heights and mayfield slightly better than lyndhurst, but not by much. These are all fine, stable areas where lots of people want to live.
I'm looking for some great areas to invest in within a 3 hour radius from New York. Frankly it's too expensive over here and I'm itching to get in.
How's Pennsylvania or Connecticut?
Any advise is much appreciated
Crystal I cant speak for those market but I can tell you Charlotte we have quite a bit of people moving here from the North or investing. Which I get as I was born on Long Island so I under stand both markets. We have a much cheaper entry point in our market as well.
Been looking at homes in nyc. Have yet to pull the trigger. How do i know that this deal is a deal to pop my cherry on?
What do the comps tell you?
What are comps? Sorry I am new to REI and only 19 yrs old.
Comps are comparable sales. What are similar properties selling for? When you know that answer you can tell if what your looking at is a good deal or not.
Probably wise, sounds like NYC is not for everyone - it's my understanding it can take over a year to evict a tenant!
Sounds like you've had a great offering of suggestions, don't be shy to venture outside of your geographic comfort zone. As long as you have a great property manager in place go for where the numbers look good.