Updated about 9 years ago on . Most recent reply
Going out of state to buy
folks - I am unable to find profitable opportunities after factoring in all costs including property management and taxes in NJ in desirable areas. Do you have recommendations on where I could do out of state investing to meet my return objectives of already a 10 % COC and $150 to $200 a door? I have literally run hundreds of APOD calculations in my home state and getting incredibly frustrated. To relate a recent history, I won a house on hubzu.com but they need me to close in 35 days. When I went into the property I found several things needed to be fixed including the copper pipes for plumbing that have been vandalized. So I cannot get a conventional loan without water being turned on. So my only option is a homestyle renovation loan which per my lender would take about 60 days to close. Hubzu imposes a penalty of a flat fee of $300 and $100 per day for any day over 35. The contractor expects $24k in repair costs. So a deal once found attractive based on which I bid is turning out not to be so attractive. This is one of the reasons I am considering out of state investing. Since these will be out of state, I definitely would need to account for a property manager and still obtain positive cash flow. Kindly advise.
Most Popular Reply
A lot of the cities people are mentioning are good, but why not go check out Philly? It's close enough to you that you can pretend it is in-state. (and sorry about the numbers...I live in LA so same situation here so I also just buy out-of-state). I've been working with people buying there for a few years now and the returns are good if you know where to look and the properties are super cool. I just went there earlier this year to check everything out and I loved it. Very cool city. The other cities work too, but this one wouldn't require a plane ride.