Recommendation for buying first investment property

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Recommendation for buying first investment property

HX Yuan
Investor · TX · Member since 2020 · 9 posts · 5 votes

I live in Queens NY and had worked in the corporate world for most of my life. Last November, I lost my job and I decided to get into Real Estate investment and work for myself. I am new in the real estate field and have spent a lot of time learning during the quarantine time. I’ve got basic knowledge of it but there is still so much to learn. Many investors suggest simply jump in and do it which I also believe is a good way to get hands-on experience. I am planning to buy my first investment property in the area where I can reach. However, the New York area has a high entry point that is not an ideal place to invest the first one. I am thinking to start in Pennsylvania. My questions are: Is the PA a good state to get started? If yes, any suggestions what are some of the cities in PA good for investment? Or any recommendations of surrounding reachable states of NY to get started? your input is greatly appreciated!!

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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y

I would start somewhere you can go to so you ca learn so PA could work, both in Philly and Pittsburgh. In Northern NJ where I am, there are definitely options, but it is very competitive and the taxes are very high. There are parts of Westchester that could do well for multi-family, like Northern NJ as well. You want to find the perfect balance of good price and veritable proximity so Philly could end up being a bit far for your first one unless you have the time to drive over a lot to build those relationships.

[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
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  • Stone Saathoff
    Investor · San Antonio, TX · Member since 2019 · 576 posts · 307 votes
    6y

    Pennsylvania from what I've heard is one of the more affordable places to start investing, I've also heard great things about Ohio. Personally I only work in the San Antonio, TX area so that is the bulk of my experience, but it's hard to go wrong targeting affordable cities with a diverse economy.

    2Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    I would start somewhere you can go to so you ca learn so PA could work, both in Philly and Pittsburgh. In Northern NJ where I am, there are definitely options, but it is very competitive and the taxes are very high. There are parts of Westchester that could do well for multi-family, like Northern NJ as well. You want to find the perfect balance of good price and veritable proximity so Philly could end up being a bit far for your first one unless you have the time to drive over a lot to build those relationships.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    3Reply
  • Tony Chung
    Member since 2020 · 6 posts · 4 votes
    6y

    Follow.  I am a new yorker too.  I'm interested to buy properties in westchester and Northern NJ.  My Facebook fd doing great in NJ.  I saw him post pictures of closing every 3 months.  I dont know the exact location.  In NY, you can consider properties in woodhaven and Richmond hill.

    1Reply
  • Joseph Duffy
    Member since 2018 · 8 posts · 2 votes
    6y

    After 20 yrs out of the game (sold my last rental in 2004) I find I'm kind of a newbie as well and am fortunate to live in Northern Ffld Co Connecticut. From where you are we are just a bridge away and there are some great areas in So. CT. I would stay away from Bridgeport & New Haven unless you have a local to help you navigate the neighborhoods - some are pretty bad. There are some great towns with relatively (to NY and NJ) affordable property tax rates. If you want to look further north, I am putting together some #'s for Waterbury right now - it is a great town in which to invest. Good luck!

    2Reply
  • Joe Chirdon
    Real Estate Agent · Harrisburg, PA · Member since 2016 · 159 posts · 82 votes
    6y

    Check out Camp Hill, PA. Close to Harrisburg, nice area, but not super expensive. 

    2Reply
  • Jon KellyPro Member
    Investor · Bethlehem, PA · Member since 2016 · 929 posts · 951 votes
    6y

    @HX Yuan consider looking into the Lehigh Valley (Bethlehem, Allentown, Easton). It's ~1.5 hr drive from NYC. It's received a lot of attention from New York investors over the past several years 

    2Reply
  • Natasha Sykes
    Member since 2020 · 16 posts · 1 vote
    6y

    I am new to investing as well. I am in the Phoenix Arizona area and first wanted to house hack but have been looking for deals for the last 6months to no avail. I am now in a situation where I need to make some moves fast and I was wanting some advice on changing my strategy. Would just switching to trying to house hack single family homes (live in for one year then rent out a turnkey home) be a good strategy or would I be better off just following a BRRR strategy going forward?

    1Reply
  • Alex Capozzolo
    Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    6y

    @HX Yuan Philly is a great place to start. Some neighborhoods have taken off and priced high. Others still have a ways to go. Brewerytown and Point Breeze are popular neighborhoods where investors have done really well over the past 5-10 years in terms of appreciation. 

    You'll come across investments that will land you both cashflow and appreciation in the same purchase which is why I invest in Philly. Let me know if you have any questions about specific areas or zip codes. 

    1Reply
  • Account Closed
    Investor · Phoenix, AZ · Member since 2018 · 420 posts · 388 votes
    6y

    @Natasha Sykes I am an investor in the Phoenix area as well. Are you tuned in with the wholesalers in the area? I’ve seen several deals come through lately.

    0Reply
  • Chris Burke
    Investor · Austin, TX · Member since 2014 · 13 posts · 1 vote
    6y

    I agree with @Whitney Bowling . I was having issues finding things on the MLS. There are still some off market deals coming through though.

    0Reply
  • Chris K.
    Attorney · Nashville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @HX Yuan

    Take a look at this link.

    https://en.wikipedia.org/wiki/Pennsylvania_metropolitan_areas

    In terms of cash flow, your sweet spot is probably between rank 4 to 8. That doesn't mean you can't make money in other areas. But areas that are ranked higher typically have a higher purchase price. Areas below that have a significantly less population.

    I would note that each area has a wide range of classes. So a class A property in Scraton & Wilkes-Barre area might be more expensive than a Class C property in Philly. 

    Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

    1Reply
  • Sam Abazari
    Lender · Chicago, IL · Member since 2020 · 53 posts · 30 votes
    6y

    Hi @HX Yuan! Happy to hear that you're looking into real estate investing - it's definitely been one of the most fruitful choices I've made in the past thinking back to when I first got involved. If you're interested in looking into Massachusetts, I'd be happy to connect and discuss some of the investment opportunities and outlook there! 

    1Reply
  • Eddie SalemPro Member
    Lender · Jacksonville Beach, FL · Member since 2016 · 24 posts · 7 votes
    6y

    @HX Yuan Congrats on getting started. One thing to keep in mind when getting started is how you plan to finance these first few deals. Let me know if you need any introductions to lenders for your first investment :)

    [email protected]904-859-4713
    2Reply
  • John C Walton
    Real Estate Agent · Lehigh Valley · Member since 2020 · 11 posts · 7 votes
    6y

    Haixia,

    Pennsylvania is a great place for you to start investing.  In particular, the Lehigh Valley (Easton, Bethlehem, Allentown and their surrounding municipalities) is an exciting place to live and invest in.  And, it's an easy drive from Queens.  I'm a Realtor in Bethlehem who helps investors buy properties, as well as lead them towards any rehabbing needed and then handing it off to a good property manager, if necessary.

    1Reply
  • Chenguang Huang
    Member since 2020 · 5 posts · 0 votes
    6y

    @Haixia Yuan

    Welcome to the investment in Allentown, Bethlehem, Easton area. It has quite attractive cash flow.

    0Reply
  • Ben Baye
    Contractor · WI · Member since 2019 · 34 posts · 15 votes
    6y

    @Haixia Yuan it’s good to hear your looking to get started. I can’t say I know much about PA but I lived in VT for 10 years and did some analysis on the Burlington market. Rents are pretty high in VT through and taxes aren’t too bad. Property prices were in the low 100’s. It’s been 3-4 years since I moved but I was leaning heavily on investing there. It may be worth a look. Big college town too so there’s also that dynamic you could pursue.

    Best of luck to you!

    1Reply
  • Daryl Bennett
    Member since 2020 · 3 posts · 3 votes
    6y

    Following and good luck. I'm in suffolk county-- from what I've seen (granted, it was just via zillow), the cheap houses in Huntington were 350k needing work (ie just saw a 4+2br w/ 12k taxes.........). 

    Very discouraging. 🤣 But will aim to buy in nearby state, like you're saying. 

    1Reply
  • Marlon Johnson
    Member since 2019 · 5 posts · 5 votes
    6y

    @Natasha Sykes if you qualify for a mortgage and can get funding for a home why go single family. The Brrr method could be perfect for you with a duplex. Also when you find the seller, see if they would be interested in selling on terms and maybe you can get into your first home for next to nothing in up front cost.

    0Reply
  • HX Yuan
    OP
    Investor · TX · Member since 2020 · 9 posts · 5 votes
    6y

    Thank you everyone for your valuable insights. The post definitely gave me a direction of where to look for my first move. I really appreciate your inputs!  Looking forward to starting the journey. I wish you all success in your investment.

    0Reply
  • Nathalie Llanos
    Rental Property Investor · New York City, NY · Member since 2020 · 2 posts · 0 votes
    6y

    @Joe Chirdon, yes and I heard Harrisburg is real nice. They have a website and everything.

    0Reply
  • Marcelo Munoz
    Rental Property Investor · Downingtown, PA · Member since 2015 · 4 posts · 1 vote
    6y

    There are a few areas in Southeastern PA that would work well to start investing in Real Estate. Montgomery County and Chester counties have some towns with good price/cashflow ratios. I own a multifamily and office building in the West Chester/Exton area and both have been great with cash flow. 

    0Reply
  • Quintero Pitts
    Rental Property Investor · Flint, MI · Member since 2020 · 1 post · 0 votes
    6y

    @Bridget Krause hits it on the head especially in flint. Flint has its pockets of sustainable and decent area but has tons of area you dont go near.

    Unless you are from flint, or have someone in flint that knows the area I would stay away.

    0Reply
  • Natasha Sykes
    Member since 2020 · 16 posts · 1 vote
    6y

    @Whitney Bowling No actually I am not. Not really sure how to connect with one in my area. I am open to trying this out. Would meet up groups be a good way to connect with some wholesalers or craigslist?

    0Reply
  • Natasha Sykes
    Member since 2020 · 16 posts · 1 vote
    6y

    @Marlon Johnson please tell me more.  What type of selling terms?

    0Reply
  • HX Yuan
    OP
    Investor · TX · Member since 2020 · 9 posts · 5 votes
    6y

    @Marcelo Munoz, Thanks for the information. What are the towns/cites in Montgomery and Chester counties would you recommend? 

     

    0Reply
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