Hey my name is Lance i live in nyc and cannot find any properties that makes sense financially in the ball park of 300,000-500,000 i am thinking of purchasing my first rental property/ house hack but i'm not sure what area i should look to invest in. at the moment i am thinking about new jersey a duplex or a triplex in the neighborhood of 3-400 thousand range i am looking for advise on what i should do if it makes more sense to stay in nyc and just keep saving up or should i take the leap and move to start building wealth?
Would you do OOS? Midwest is way cheaper than those coastal areas.
@Lance Francis , based on your criteria of 300k to 500k you will surly have a difficult time find a property in NYC
With that in mind, here is a map showing the median home values as reported on the most recent American Community Survey aggregated by zip codes in the NYC area.
I have filtered the results to only show zip codes with median home values in the price range mentioned above.
As you can see, the areas that meet your criteria are seldom located within NYC proper. NJ is a good candidate, as well as the Bronx, and eastern Queens.
Hope this helps!
For that price range, I would suggest you look outside the boundaries of NYC.
I would be curious to know more:
Are you going property manage?
Paying cash vs loan?
What type of cash on cash return looking for? What type of ROI are you looking for?
I also live in NJ. It can be difficult to find cash flowing rental properties here. We have very high property taxes and yearly inspections in some towns adding to the operating expenses. I used to own 18 units (SFR and small multis) in NJ. We sold 5 units and since bought 2 Mobile Home Parks in Indiana. We are currently negotiating a 3rd park. I received advice in 2017 to look outside of NJ for MHPs. We did and it proved to be a good move for us. Moving into multi-family and out of NJ was the best thing we could have done. We partnered with a friend from NJ and scaled up. The cash flow from 1 park (1 transaction) exceeds what our entire NJ portfolio generates.
In my experience you can make money in NJ but you really have to know your market of course and have lots of capital. A good place to start is finding a REIA (Real Estate Investment Association) or a Real Estate Meet Up in the are areas you want to purchase and start networking. Good luck.
@Lance Francis i would check out the lehigh valley. You can find a very nice multi family in a decent area for around 200-300k. This area has been a nice hot bed since its right across the nj boarder and people are leaving new jersey faster then any other state.