Multifamily properties in New York and New Jersey

8 Replies

Hello everyone! First and foremost I'd like to say that I am honored to become a member of Bigger Pockets. I feel like I've learned so much more than I knew before by listening to the podcasts alone.

Cut to the chase.  I Live in Manhattan and am looking to invest in a small multifamily property no more than about a two hour drive from the city. Does anyone know some good neighborhoods in New York or New Jersey that produce decent cash flow for buy and hold properties and have a price point no more than $100,000? (less than $70,000 is most preferable). I reviewed a few places in Brooklyn but the properties seemed to only favor appreciation and not cash flow. I'd greatly appreciate your feedback.

@Rick Grimes  , welcome to BP!  I wish I knew more about the New York area :/

If you are looking for real estate properties in neighborhoods in New York or New Jersey then you should contact to some local real estate brokers or use traditional advertising idea to search a property that mach your needs.

I'm sorry that I have to be the one to say this but your parameters are impossible.  It's impossible to find a multifamily that's only $100k that has good cash flow.  Forget cash flow.  It's impossible to find a multifamily that has no cash flow and is $100k.

With only $100k, you'll need to start with purchasing single family homes in low income neighborhoods.  You can flip them by contacting wholesalers and purchasing them for $50k.  Put $50k into them and then flip them for $125k.

If I was starting out, I would partner with a contractor who would vest a little money so he won't just take the money and run.  Learn from him and after a few flips, you can do it on your own.

Hi Rick.  Why not use your money as a down payment on a multifamily in Queens or the Bronx and live in one of the units until you're ready to make your next move?  

Thanks Matthew.  I commend you for becoming a CPA. A very important role in real estate.  Have you seen any good deals in your borough? I've been wondering if Queens is a good place to invest in small multifamily properties. Living in Manhattan is not the place for someone starting out, to invest in due to overpricing. 

-Rick

@Rick Grimes  I'm always looking for deals especially with small multi-families, but I haven't seen anything in Queens so far.

@Rick Grimes  

Hi Rick,

Welcome to Bigger Pockets.  I would have to agree with the other comments that $100K wouldn't really cut it in those areas.  In addition, decent cash flow is hard to come by in those markets.  In the long run, you're really counting on appreciation which makes it more risky.

Your best bet is to possibly invest alongside other investors who are involved with experienced rehabbers in the area.  I think @Roger Doe  's advice is on point.

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