New Real Estate Investor, Rent Income In High Price Area NY NJ
Hello, everyone. I am a brand new prospective real estate investor (when I mean brand new, I mean I decided to start investing in real estate yesterday). I have been reading some of your posts and I must say there are a lot of knowledgeable people here (unlike most internet posts). I have learned a great deal already. However, the reason I am starting this post is to ask a little more specific question related to my situation.
I live in the NYC metro area, and as everyone knows, Amazon announced opening headquarters in Queens NY area as well as Arlington County VA area. Now basically I am trying to invest in real estate where house prices are unlikely to go down yet still demands a high rental price. However, in the Long Island City area of Queens, 2 and 3 family houses have a purchase price of around $1.3 million and up. The rental income is about $5,200 for 2 family & $6,800 for 3 family.
Basic question is assuming I am able to purchase for $1.3 million (mortgage plus savings), is it a good idea to buy this property and rent it out (where rental income over purchase price ratio is very low) or is it better to look for cheaper property further away from NYC where rental income over purchase price is higher? The property is expensive in that area because of proximity to NYC as well as proximity to Amazon in the very near future. Everyone knows about it, but not many people will be able to jump in and buy something for over a million dollars.
Also I read somewhere in this blog community about receiving 1% fee from a bank for providing "guarantee of funds" services on a million dollars and if that is done 10 times per year, you can earn 10% on that million. Is this legit, or another get rich quick gimmick? Thanks everyone in advance for any advice that you can give.