Ready to Invest NOW, But Where Do I Start?

6 Replies

First time investor from Brooklyn here. So I've been trying to determine where to start investing in Real Estate and have had a tough time finding particular areas to focus on as the options seem endless. Since Brooklyn is too expensive and the cash on cash return is next to nothing here, I am open to investing anywhere in NY, NJ, PA, or CT. Anywhere that's within a reasonable (max 2-3 hours) driving distance from Brooklyn. 

I am looking to buy and hold cash-flowing, multi-family properties that I will have a management company look after in order to provide myself an additional income stream that's as passive as possible. I am approved to buy an investment property in the 600k range but would personally prefer spreading that out over multiple properties instead of just one. A 10% or better cash on cash return would be ideal. I would like to get a property that requires little to no repairs upfront and that can be sold easily at a later date if my circumstances or investment strategy were to change. 

For the pros out there that have experience in NY, NJ, PA, or CT, what would be the steps you would take if you were in my shoes and what areas would you suggest I focus on considering the investment criteria that I've mentioned above?

Any input would be much appreciated.

@Fami Fozi Welcome to BP. I don't do much in the try-state and the northeast, more in the southeast and midwest. However, I do live in Brooklyn and if you ever wanted to grab coffee, food, a drink let me know and we can set something up and just have a chat. Let me know!

Hi @Fami Fozi , depending on your situation and interest level, MF syndications could be right up your ally.

1. Syndication teams always have a property management team on board with a successful track record in the specific market.

2. As an investor in most MF syndicates, it doesn't get much more passive.

3. Depending on your capital, you could easily find a team that does multiple deals per year and spread your capital out over each deal to minimize risk even further.

4. 10% CoC is a common target.

5. Hold periods for these deals typically don't go as long as a decade.

The one caveat is that you have to be an accredited investor. Feel free to connect, I'd love to chat.

Best of luck in whichever route you choose to take!

@Fami Fozi if you are accredited @Michael Bishop presents a solid option for owning quality real estate that generates a superior return.  Achieving that same level of asset class and returns on your own without taking more risk will be nearly impossible.  Better to have a professional team as a partner.

Happy to chat further sometime but either way; happy hunting!!

Originally posted by @Fami Fozi :

I am looking to buy and hold cash-flowing, multi-family properties that I will have a management company look after in order to provide myself an additional income stream that's as passive as possible. I am approved to buy an investment property in the 600k range but would personally prefer spreading that out over multiple properties instead of just one. A 10% or better cash on cash return would be ideal. I would like to get a property that requires little to no repairs upfront and that can be sold easily at a later date if my circumstances or investment strategy were to change. 

For the pros out there that have experience in NY, NJ, PA, or CT, what would be the steps you would take if you were in my shoes and what areas would you suggest I focus on considering the investment criteria that I've mentioned above?

Any input would be much appreciated.

Hi Fami, 600K will go a long way to getting you some nice passive real estate returns here in the Connecticut market. I focus on mainly the greater Hartford area when working with out of state buyers such as yourself, and have found quite a few properties that net a 10% COC after all expenses, including property management.

I really like suburbs within 15-20 minutes of Hartford. Hartford is still one of the biggest employment hubs in the state of CT and known as the "insurance capital of the world". It is hard to go wrong in areas like East Hartford, Bristol, Manchester, Vernon, Windsor, etc. West of the river is where you are more likely to find an appreciation market (West Hartford, Avon, Farmington, etc). New Britain, Enfield and Windsor Locks can also cash flow pretty well. 

I personally invest locally and operate a property management company here, so I like to think I have a pretty good grasp on the area. If you have any questions, don't hesitate to ask. I'm all about providing value!

Be well, 
Filipe

Filipe Pereira, Real Estate Agent in MA (#9557050) and CT (#0807610)

    @Fami Fozi

    Filipe Pereira mentioned some great points. Investing out of state can be challenging, but with the right team in place, it can be a breeze!

    Rick Santasiere

    Thanks guys. I will be reaching out to some of you privately. 

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