Need advice for out of state investing from NY

[David Hong]

Hi - Currently residing in Queens, NY amd have about +$200k for downpayment and want to invest in units as rental property (i.e 3-4 units or duplex).

However, as most of you are aware, it is near impossible to find a property that generates positive cash flow in NY/NJ area and wanted to get some of your insights on how to move forward. Is there any places you recommend to invest in out kf NY or NJ? If out of state is better, where would you recommend? I understand property mgmt is the key...

[Filipe Pereira]

Hey @David Hong, welcome to bigger pockets! About 70-80% of the calls that come into our property management office are by out of state investors in NY and NJ, so I definitely hear what you're saying. Since you already understand the value of property management, as long as you are OK with not being a 10 minute drive from your property, I'd say you're a prime candidate for an out of state investment. I wouldn't be surprised if the majority of people who live in NY/NJ and other HCOL locations are investing outside of their state. 

Ask someone to set you up with MLS access in all the areas you're considering, then take a look at list prices vs gross rents generated. In CT we're still seeing about a 1.3% (when folks are referring to the 1% rule). We're getting ready to list a $370K property here next week that generates $4800 in income. Feel free to reach out any questions if you're evaluating Connecticut or Massachusetts. If you do go the MA route, be sure to educate yourself on lead laws and other tenant friendly laws they have in place (like grace periods for rent payment).

Best of luck!