Where to invest for multi family/office/mix use?

Question

I’m in NYC and can’t really find commercial properties that pass the BP rental calculator evaluation process. I’ve read Crushing It in Apartments and Commercial Real Estate by Brian Murray. I’ve attended a few webinars for Brandon Turner and listen to his podcast daily.

I’ve used the calculator and evaluated a few properties even out of state. My confusion lies in which area to consider to invest as prices in NYC aren’t good investing in multi family apartments. I am good with 5 units as a starting point.

So I want to know where you are investing and why?

Henri Meli · Answer

@Gaurav Bhasin . There are lots of people who invest (successfully) in places they have never seen. I'm a visual person and I like to see things with my own eyes for my own comforts. Here is what I would do.

I would narrow down my choices based on specific set criteria, then take a trip (week end trip) to places I would like to invest, meet with brokers, agents, property managers ... etc. And start building a relationship with them.

Good Luck.

Theo Hicks · Answer

To add to @Alina Trigub's advice, you'll either need to identify ways to add value that make the low cap rates worth it or invest out-of-state. Once you've created your list, start reaching to to local brokers and property management companies to determine the good and bad neighborhoods in the market.

Alina Trigub · Answer

@Gaurav Bhasin So perhaps consider the Caribbean :)

Gaurav Bhasin · Answer

@Alina Trigub thanks for the advice. The only issue I have is that I have all my family and friends in NY and I travel mostly to Caribbean. I’ve been randomly looking all over the US and doing Google searches on best places to invest in real estate in America. I’ve been all over the place and have looked at a lot of properties without a clear direction.

Alina Trigub · Answer

@Gaurav Bhasin

Your confusion is understandable, as prices in NYC are insane for MFH (and for SFH as well for that matter). So consider going out of state.

The best way to find other places to invest is to think of places  where:

1) you have friends and/or family that you'd travel to

2) you'd like to frequently visit

3) you'd like to reitre

Generate a list of several areas and then narrow down your search by doing the additional research on each area.

Also, consider joining local REI meetups. I run one of them. You can find more info under my profile.

Best!