I am currently residing in central NJ, and as most people know the the market in my neighborhood is a little tougher to get into than most when you don't have a significant amount of cash laying around to invest.
I have been researching many different markets but my main question is - how do I choose one? I scour the forums day and night and research many of the popular cities that come up but really, i'm not sure how I can do the research on my own from scratch.
Can you guys tell me what your thought process is like when you search for a new market to invest in? Do you just open google maps and zoom out? Do you analyze growth in certain areas? What do you do?
Anyone that could point me in the right direction would be greatly appreciated. I am looking to purchase a duplex for under 80-90k and rehab it to an ARV of around 150k. Potentially renting for around 2k/month. Thanks!
@Shreyas Kalaria its extremely difficult to purchase property in another area unless you can manage the project yourself. Building a team out of state is harder than it looks and finding a good property is even harder given you dont have the knowledge of that market nor do you have the team and contacts in place. If you can find a market thats affordable but within driving distance so you can at least keep an eye on the property I would suggest that before going to another market. Pittsburgh is very affordable and you can get a deal in the price range you are looking but again do you have the resources and the people in place to get the job done is the question. You cant drive here from NJ to check on your properties once a week.
@Alex Deacon I actually have been looking at pitt because it is "closer" to me. If something were to go wrong I could make a long drive there but just as you said, I can't make it a weekly drive.
Wherever I decide to initially invest I plan on building a solid team before making any purchases. The only reason I haven't started to build a team yet is because I obviously need to settle on a market first. I completely understand the importance of having a team I can depend on. My main concern with the long distance investing is getting cheated on quotes from contractors because I can not be there to see the work. I plan on minimizing this by getting multiple quotes when large jobs are needed.
@Shreyas Kalaria those are very valid concerns and issues I see all the time here happen to investors from out of state. I think the market is great here. I buy 3-4 properties a month and I am fully vested here. I am from this area and have lived here all my life. I like to see others succeed thats why a lot of my posts are about being proactive and enthusiastic about the industry but also being cautious. I have made my share of mistakes and they can be mentally draining and financially painful.