Multifamily Investing in Northeast 2020?

Buying & Selling Real Estate
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Multifamily Investing in Northeast 2020?

Miguel Rosendo
Member since 2019 · 1 post · 0 votes

Hello Bigger Pockets Investors!

    I am 23 years old living in NYC and unfortunately I have no intention of leaving any time soon but would love to take advantage of low interest rates and leverage up to start building my real estate portfolio. I have been listening to the podcast for a long time and I think  it would be great time to buy a multi-family rental property. Although I think I could gather up the funds to pay a 20% down payment on a 300k mortgage, I would rather house-hack for a year and put 3% down so that I can have more liquidity (splitting my time 60/40). Because of this I am also considering livability but I think it would also be feasible for me to continue renting in NYC and absorbing vacancy costs until the units are filled.

    However there are no 300k multi family homes in NYC and as far as I understand it buying in NJ is not tax friendly and I don't know the suburbs around NYC enough to buy around there. I am looking to invest in the Albany area as I know it fairly well and prices are cheap but I am open to hear peoples experiences investing in CT or PA or anywhere else you guys have managed to get a solid cashflow/roi. 

Thank you for your help!

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Filipe Pereira
Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
5y

Hi @Miguel Rosendo, I live in CT and am active in the real estate space by being a investor, agent and property manager. 

CT is finally starting to see some price appreciation after remaining largely stagnant over the last few years. That being said, when using the popular "1% rule" we still come in at around 1.2-1.3%, which of course exceeds the 1% rule. I'm a fan of the Hartford county area (some would call it north central CT), but to be fair, it's all I've ever known.

When compared to it's immediate neighbors (NY/NJ/MA) CT is the most landlord friendly of the four, which isn't saying much because each of those states is pretty left leaning, but I'd choose the less of all evils. Feel free to tag me in your next post if you have any questions.

300K will get you a 2-3 family in a B/C neighborhood if you're patient up here right now.

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  • Will FraserPro Member
    Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    5y

    Hi @Miguel Rosendo, welcome to the BiggerPockets forums!

    Why do you say "unfortunately I have no intention of leaving anytime soon?" 

    If you are there, own your decision and situation and maximize it!  

    1Reply
  • Filipe Pereira
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Hi @Miguel Rosendo, I live in CT and am active in the real estate space by being a investor, agent and property manager. 

    CT is finally starting to see some price appreciation after remaining largely stagnant over the last few years. That being said, when using the popular "1% rule" we still come in at around 1.2-1.3%, which of course exceeds the 1% rule. I'm a fan of the Hartford county area (some would call it north central CT), but to be fair, it's all I've ever known.

    When compared to it's immediate neighbors (NY/NJ/MA) CT is the most landlord friendly of the four, which isn't saying much because each of those states is pretty left leaning, but I'd choose the less of all evils. Feel free to tag me in your next post if you have any questions.

    300K will get you a 2-3 family in a B/C neighborhood if you're patient up here right now.

    3Reply
  • Nate Monson
    Real Estate Agent · Albany, NY · Member since 2017 · 309 posts · 149 votes
    5y

    Hey @Miguel Rosendo, I'm from the Albany area. Unfortunately I can't assist with info for other areas. But if you'd like to connect about Albany I'd be happy to chat!

    1Reply
  • Steven Luttman
    Rental Property Investor · Saratoga Springs, NY · Member since 2018 · 162 posts · 102 votes
    5y

    @Miguel Rosendo can you elaborate a bit on your investing goals?

    0Reply
  • Will Gebbie
    New to Real Estate · Morristown, NJ · Member since 2020 · 17 posts · 26 votes
    5y

    @Miguel Rosendo you can also invest in Philly as it is only a 90 min train ride from Penn station. I live in Manhattan so this is something I've been looking into. You can definitely find some nicer townhomes or multifamily homes in the $200k-$300k range.

    0Reply
  • Alex Uman
    Investor · Montgomery County, PA · Member since 2020 · 255 posts · 238 votes
    5y

    @Will Gebbie has a good point here. I may be biased but I know plenty of investors coming down to Philly from NY to take advantage of lower prices and better policies for landlords. Feel free to reach out if you have any questions.

    0Reply
  • Honglian Wu
    Investor · Glastonbury, CT · Member since 2020 · 14 posts · 0 votes
    5y

    @Miguel Rosendo

    Hi Miguel, I stayed in Upper state of Ny for 3 yrs ( clifton park) and moved to NE of connecticut 2 yrs ago. i was kind of depressed when we just moved here as the inventory is crazy low, tax is high, houses are aged, lots of houses under septic and well, and foundation issues etc.

    I do recommend when you start, invent a place where you know pretty well. Good luck!!

    0Reply
  • Craig Bellot
    Property Manager · CT · Member since 2014 · 687 posts · 329 votes
    5y

    Hey @Miguel Rosendo the first steps I would recommend as a new investor is to get a handle on analyzing the income, expenses and ROI of these properties in Bridgeport.

    You can use the Bigger Pockets calculators to start. Use Zillow and rentometer.com to get data and analyze a few from your home to see what type if returns there are.

    If these meet your investment criteria then start looking in person. 

    Let me know if you have any questions.

    -Craig

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