Advice for beginner - struggling to pick a market/area

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Advice for beginner - struggling to pick a market/area

Jordan Lefkowitz
Member since 2020 路 2 posts 路 2 votes

Hello bigger pockets community! I am new to real estate investing and am looking to purchase my first buy and hold property. I'm currently researching and trying to figure out which area/market I'd like to invest in. I live in New York so am thinking it'll be out of state, maybe Connecticut or Florida but really am not sure. Would appreciate any advice you can give to a beginner! 

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  • Craig Bellot
    Property Manager 路 CT 路 Member since 2014 路 687 posts 路 329 votes
    5y

    Hey @Jordan Lefkowitz, Welcome to the community! We are excited to see thrive here...

    There are tons of deals on the MLS in Connecticut where we invest.

    The very first steps I would recommend though as a new investor is to get a handle on analyzing the income, expenses and ROI of these properties in Bridgeport.

    You can use the Bigger Pockets calculators to start. Use Zillow and rentometer.com to get data and analyze a few from your home to see what type if returns there are.

    If these meet your investment criteria then start looking in person. 

    Let me know if you have any questions.

    -Craig 

    0Reply
  • Angelo Pozzuto
    Rental Property Investor 路 Bridgeport, CT 路 Member since 2018 路 33 posts 路 34 votes
    5y

    Welcome to BP! Happy to hear from you!

    Here's my advice- I find its easier to pick a market when you get an understanding of a criteria. If you hone in on what exactly you are looking for and then decide if a market can support that, it will be an easier problem to solve. Also, I like to preface that whatever your criteria, if you manage the property well and execute to the best of your ability, given enough time everything works. So dont stress to hard, its more important that you pick something and be consistent about it. 

    First is strategy, buy and hold is a heck of a lot different then say flipping or wholesaling a house. So if you have your heart set on that, then the next thing is how you are going to buy, meaning off market, like yellow letters and the like, or more of a retail strategy. Both work, they are just different and who you go about in your execution will change. Then you lock down a market, then how much you are willing to pay to get started. I put them almost together because a lot of the time they are related, higher end properties will be more expensive if we are talking two towns near eachother. Different states or regions in a state can be totally different so do some research. If you find you cant get the right criteria in a market, just pick a different market.  But you cant really start in a market without a handle on the how and expect to feel comfortable buying something. I find comfort in knowing that this place fits my criteria, so I would start there. 

    Let me know if you have any questions or want to speak further!

    -Angelo Pozzuto

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  • Levi K.Pro Member
    San Diego, CA 路 Member since 2013 路 37 posts 路 14 votes
    5y

    @Jordan Lefkowitz Good day, Jordan!

    I am also "buy and hold" real estate investor.

    From my experience I would say the following:

    1. Figure out what are your criterias - 3b/2b with 2 car garage, near good school district, new construction or turnkey property, cash on cash return, buying for cashflow or appreciation...

    2. Buy/invest in tenant Friendly states!!!

    3. The area that you choose can be a perfect fit, however, if you don鈥檛 have a team it can be a nightmare.

    4. See if you can find someone that already invested in the area that you might be interested to invest and get referrals from them.

    There are many, many providers/options out there. You just need to be crystal 馃敭 clear on what is that you want. (Might take some time).

    What works for someone, not necessarily will work for you.

    Hope it makes sense.

    Please don't hesitate to reach out to me if you want to bounce ideas 馃槈.

    Happy to chat.

    Levi

    0Reply
  • Michael Reisman
    Columbus, OH 路 Member since 2019 路 78 posts 路 66 votes
    5y

    @Jordan Lefkowitz

    I would look at the website city-data.com, it has a lot of very useful statistics that I have used for analyzing different markets. No matter what market you choose, make sure to reach out and find a team you trust (agents, pms, contractors, lenders). If you do not have your team in place you will fail. Best of luck in your journey!

    0Reply
  • Jonathan Oh
    Investor 路 Las Vegas, NV 路 Member since 2019 路 499 posts 路 259 votes
    5y

    @Jordan Lefkowitz Too little information for anyone to help you choose a market. First you need limit your search to specific metros or cities. For example, Florida has Jacksonville, Tampa, and Orlando. In general, aim for markets with growing population, diverse economy, and low unemployment. Depending on how much capital you are working, some markets may or may not make sense.

    0Reply
  • Jordan Lefkowitz
    OP
    Member since 2020 路 2 posts 路 2 votes
    5y

    Appreciate the advice from all of you! This is extremely helpful and I'll definitely be keeping it in mind as I continue to develop my plan and figure out where I'd like to invest. 

    0Reply
  • William CollinsPro Member
    Investor 路 Rocky Hill, CT 路 Member since 2013 路 373 posts 路 299 votes
    5y

    @Jordan Lefkowitz  I would probably recommend a both states approach long term from you. Reading between the lines a bit, I sense you don't want to invest in New York due to the newer tenant laws- but make sure you really scratch the surface there. Upstate New York has some great cash flowing markets.  When I see someone from NY asking to invest in Connecticut, I think to myself they want to be involved/ be able to drive to the project.  I would suggest partnering up with someone CT in some fashion to learn the ropes and watch a project end to end with the goal in mind- you want to build a system. You could then take that system and leverage it anywhere: NY, CT, FL... who cares.  Make a framework that works. Examine it to apply to a local market, and modify it so success is repeatable. 

    0Reply
  • Basit SiddiqiBusiness Member
    Accountant 路 New York, NY 路 Member since 2015 路 8k+ posts 路 3k+ votes
    5y

    @Jordan Lefkowitz

    Is there an area that you know that you know really well already?
    Growing up in either Connecticut or Florida?
    Going to school in either state?
    Visit either state to see family?

    If you know an area well it gives you a competitive advantage compared to others who never visited the city. You know what areas are good/bad and what areas are up and coming.

    Good luck on whatever market you choose.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
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