NYC Folks...Where do you invest?

Question

I am a new investor living in NYC and am looking to determine my farm area so I can begin investing.

When I initially started my research, I thought I would farm in Northern New Jersey - Bergen, Hudson, Essex and Union counties - but as I continued researching I've found that inventory is low and competition is high, making the barrier of entry for a new investor very challenging.

I am now looking into Philadelphia but am open to other suggestions and would appreciate any stories/experiences you can share.

Nicky Lisewski · Answer

At this point, in A areas you don't cash flow unless you bought a while ago.  It's why my current purchases are in B and C areas.  Take a look at Kensington, especially around Frankford Ave and around Episcopal Hospital.

Dana Waller · Answer

@Brendan Markle Thank you for the neighborhood suggestions. I'll begin researching all of them! I'll send you a message to connect and discuss further.

@Shawn M. I really appreciate the insight into North Jersey and I think when I'm a bit more advanced I'll branch out into investing there.

@Nicky Lisewski Really appreciate all the info! My goal is to BRRRR which would require a rehab so I've been doing a lot of research on the process as a whole, the teams I'll be looking to build and long-distance investing. While it does seem like an added challenge to begin in an area that isn't within an hour of where I live, I can get to Philly whenever I need to be. While rehabbing from afar is a challenge, I think it will be necessary if I want my strategy to work. I'll definitely be getting a property manager and am in the beginning stages of establishing a great team. I look forward to staying in touch and keeping the conversation going.

@Sheryl Sitman Such great information - thank you very much! I've been spending some time reviewing Philly's geography but still have my work cut out for me. It definitely takes time to learn an area especially when you don't live there. Still, I appreciate all of the suggested resources and am ready and excited to dive in. Looking forward to keeping in touch.

Dana Waller · Answer

@Sheryl Sitman I really appreciate the information. I am just now diving in so I still have a lot to learn about Philly, but thank you for confirming that it is definitely an area worth looking into. Are there any resources in particular you recommend I begin researching (aside from just googling)? And is there anything in particular regarding the local regulations that is unique to Philly - certain laws I should definitely be aware of? Thank you!

@Nicky Lisewski That is very good to know! I'll take a look at Kensington as well as other B and C neighborhoods. I've been reading other BP posts and keep finding that people in Philly are having trouble finding reliable contractors. In your experience, have you found that to be true as well? This is concerning to me since I don't live in the area and I will be depending on other people such as a contractor to get the rehab done. Thank you!

Sheryl Sitman · Answer

@Dana Waller Philly has cash flow and appreciation. Buy right and you can do really well here. If you are as close as NYC its easy enough to visit. Getting to know a City takes time - neighborhoods, people to work with, local regulations and so much more. Its a fast moving market so dont wait too long!

Nicky Lisewski · Answer

I’m an investor and agent in Philadelphia and it’s a great area for investing.  I like Philly and some of the working-class suburbs in Delco.  Are you looking for cash flow, appreciation or both?

Sheryl Sitman · Answer

Your strategy and budget will dictate your where and what. There are many groups on FB for specific neighborhoods, for investors, for wholesalers ...  where you can learn a lot from locals. Spend some time looking at the map to understand the geography, read articles from RE sections of the Inquirer and Business Journal, go to  some Meetups  - that promise some content (there are some that do not really have much content). There is a lot that is unique to Philly - the permit process is always different from City to City, Zoning, tax abatement, laws on lead, bedbugs, eviction process, how Section 8 (PHA) works. There is a very wide range of investments here, the market is competitive, the opportunities are quite interesting.

Nicky Lisewski · Answer

@Dana Waller

Kensignton is an interesting area.  Some of it is really D territory and other parts are beyond up and coming.  I'm excited about some new artist studios in a former school on Frankford Avenue.

One of the smartest landlords I know, once told me tenants are great, until they aren't.  The same is true of contractors.  I have a couple of contractors that are reliable and fairly inexpensive.  But I know that will change eventually.  So I make sure to have more names to call.

If you are investing from out of town, you'll want a good property manager, and it would be hard for you to do a fix and flip or even a medium rehab unless you have boots on the ground. If the numbers work, have you thought of getting something that doesn't need rehab?

When I lived out of town back in the day, I had a property manager handle my rental, and they were the ones who got the midnight phone calls.

Shawn Mcenteer · Answer

Hi @Dana Waller most new investors in the NJ Market believe it is a tough market, it can be challenging for sure.  What I see most of the time is a lot of properties that are over looked even by the seasoned investors.  NJ has a reputation of expensive properties with high taxes,  we also have a reputation for high rent. North Jersey is great place to win as an investor, new and seasoned.

Brendan Markle · Answer

Hey Dana!  I will third looking into Philadelphia-  its close enough to NY where you could reasonably come down and check out neighborhoods your interested in first hand, and there are plenty of good deals if you know where to look.  I own properties in Frankford, Kensington, and W Allegheny.  I believe Kensington is a great place to look into for cashflow and appreciation, places a little further northeast like Frankford can be great for cashflow, and Germantown and the surrounding areas should also show good appreciation in the next 5-10 years.  Feel free to reach out if you have any questions, i'm also a Real Estate agent.

Dana Waller · Answer

I'm looking for both cash flow and appreciation. Thank you for the insight into Philly - I'll continue researching. Have you found that there is a strong price-to-rent ratio?

NYC Folks...Where do you invest?

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