Is it a bad idea to start off with buying a house out of state for a new investor if that's all I have enough money for ?or should I just wait till I have enough to invest in my state even if it takes me a few years to save up to buy my first property.
Its very common for newer investors in certain states to look into other markets. Many people build their entire portfolio remotely.
As a former resident of 11230, I would certainly look into more affordable markets as a way to jump in. Try to connect with a realtor or a property manager in a different market.
@Daniel Hyman I appreciate that I'll definitely do that thanks.
Hi @Dov Klitnick !
I did exactly what you described this past October 2020 (detailed in post below). I live in Philadelphia, which is not as expensive as New York, but not very cheap either. I was looking to get started with RE investing and I was not looking to learn how to flip or BRRRR right now, which I felt was the only way to get into the market in my hometown. I work full-time outside of real estate and do not have any real estate or rehab/construction background. I would be happy to share more about my experience if you have any questions!
@Joseph Schweizer itresting I actually have a meeting set up with rent to retirement next week so that's good to know thanks.
@Dov Klitnick Exciting to hear you want to start jumping into real estate!
Where and what you invest in will depend a lot on what is your why in investing. What goals do you need to establish to accomplish your why? Are you investing for cash flow or appreciation? Do you need cash flow now? What is your appetite for rehab? How hands on do you want to be with you investments?
There are markets deemed cash flow markets and those that are appreciation. In between you may have a combination of both.
These are just a few things to consider when getting started. Once you decide on the questions above, then you should decide on your buying criteria. This comes with experience and personal preference.
@AJ H. Thanks for ur input definitely gonna take all that stuff into consideration.
It adds an element of risk.
@Dov Klitnick I dont think its a bad idea. I actually think it can be a good way to get started. I just moved out of the city.
It's a way to can get started especially if you live in Brooklyn. The issue is for some people they are uncomfortable doing that. If that's you then there's another option
If you have a car (or you can take the train) there are parts of Jersey and New York State that have cash flow. That can help you get started.
Dov, you may want to pick up the excellent David Greene book on this subject...