Real estate investing NJ or out of state ?

6 Replies

Could use some advice please about to make a decesion. Im currently stuck in the analzying paralyzing phase. I have 61k for house hack investment. Currently i max out my 401k, roth ira and brokerage account. I am ready after reading countless books on real estate. I live in North Jersey where taxes are so high and inventory while increasing a bit lately is still low. Im looking for a 3 unit as everyone is but would it be better to invest out of state PA for example where i can cash flow or stay in state and try to cash flow by buying in a tuff part of the state. Goal is cash flow and rent free. I feel like once i get over this bump ill be fearless and invest more funds, i have facts just self doubt i guess. Does anyone have any pointers ?
@Mario Gonzalez I’m in South Jersey and there’s decent stock of multi-family that will cash flow. But the Lehigh Valley and Lancaster MSA in PA seem to be quite hot these days. There’s deals all around the region if you get out and look.
@David Simon yeah i heard about those areas im stuck between investing for house hack here in North jersey where im in or invest out there 25% down ties up alot of my funds. I would have to move and get it better. South jersey will be too far to my work

@Account Closed I would stay put and invest locally first. Although it appears that the cashflow in Pittsburgh PA could be good its always easier than it looks. Once you start paying for contractors and property managers your profit disappears in a hurry. I have seen it hundreds of times. If you can do some of your own repairs and manage the property yourself and in the meantime increasing your RE IQ that will go a long way for future in state or out of state investments. 

@Alex Deacon if i stay put i get 0 cash flow or worst over pay for the property. Best case live rent free if anything but thats not my goal. Would like cash flow and i would not mind doing the stuff myself 1st. Philadelphia looks good for cash flow im thinking long term

@Account Closed its no impossible to cash flow out of state just makes it 10 times harder. I buy 3-5 properties a month here in the Pittsburgh market and its hard for me to find decent cash flowing properties and I do this full time. I think to learn and get 0 return on your first deal is not that bad especially if you are living rent free. Whatever you decide give it 100% and go for it.

@Account Closed Hi Mario, while it may seem like a safer choice to invest locally in your own market, I continue to hear from Investors interested in investing out of state because they are looking for better buy-ins and greater cash flowing markets. Investing out of state doesn't have to be intimidating with the proper knowledge and assistance from experts in those markets of your choice. Many see Pittsburgh PA as a strong cash flow market and it is. But buying the wrong property in the wrong neighborhood, no matter where it is, can be a huge mistake and a very costly learning experience. And sure, hiring/contracting someone can impact your overall profit, but you may also find doing so can save you a lot of money and heartache by steering you away from the "money pits" and the "too good to be trues". 

My advice to anyone investing is to first determine what kind of REI property you are looking for, talk to the locals, get on automated searches, tour or have a real estate expert tour for you interesting properties, get your financing in order and get ready to "Pounce" once you see a property you want as it's still a Seller's market and many are vying for the same property as you. Timing is everything. Best of luck to you....Gary