cap rates here in North Nj are pretty low.
What metro areas can i get the largest building (# of units wise) or is every metro area currently overheated?
I keep hearing about columbus, oh but when i go on the mls cap rates are actually not that far off from NNJ.
I like texas (robust economy, CA & northeast transplants fleeing high taxes, no state tax, pro landlord)..however i hear dallas, austin, san antonio, and other parts are not cheap per se anymore (same with florida).
How does houston compare? Thanks
Just about every area of the country is pricey. It is the economy that we are in right now. 3.9% unemployment rate. $2.50 to $3.50 gas (depending on where you are), interest rates at historic lows.
I have to say, if you are looking at MLS, you are NOT going to find DEALS. Deals are had by doing marketing to potentially distressed sellers. Spend some of that money on marketing. You will find deals in any market. I find deals every month in my area of Texas, but not on the MLS. Right now there are too few properties getting chased by all the lazy people trying to make a quick buck.
Also, it is not about buying the most units for the dollar. If you use that scenario, you are going to buy lots of units for cheap in the worst ghetto areas in the worst cities in the country. If you are going for the bigger multi unit, you have to find "value add" type of projects. Those are definitely NOT on MLS.
I agree with @Rick Pozos . There are good deals anywhere you want to find them. The best stuff never gets to the MLS..... but you can sometimes still find a deal hidden in there.
I also agree that you want to find properties that are simple to take care of and easy to manage to start.
If you start with one of the 10 unit properties in the rough side of town that rent for $350 a month on a month-to-month basis, you may not think that being a landlord is that great.
If you start with a nice property that has a good (not fantastic, probably) cashflow and great renters, you will be SUPER-excited looking for your next deal.
I think it is best to leave the really tough deals to the more experienced landlords who have a system and some experience to deal with them.
Let us know what you decide to do!
Thanks guys. The reaso why i go on mls / Loopnet is that i still work a full time finance job and dont have the time to coldcall do mailers.
I know im paying a premium but its offset by my wage for now. Ill def take your advice when the time comes to quit my fulltime job.
@Mike Kalob if you do what everyone else is doing, you are going to get what everyone else is getting. You have to work your 40 or 50 hour week and spend an hour or two per day EXTRA and 5 or 6 hours on the weekend to make it work. That is the only way that you WILL be able to get out of your job.
Its not that hard to drive around your area and look for ugly properties. Its not that hard to get a list and send out 30 postcards everyday. If you have the extra cash, PAY someone to send out the postcards. Leverage your money with people working for you. If you have a high income job, start a new business where you pay people to get the results that you are looking for.