Real Estate Broker · Pinellas County · Member since 2016 · 166 posts · 114 votes
Hi all! Trying to figure out where's a good place to invest in a nice 15+ unit property. I'm based in NY and taxes really take away from cash flow. Any suggestions?
Have you explored Connecticut? I often work with investors that come down from New York, Jersey and Boston. Some people believe that Hartford is an emerging market.
Have you explored Connecticut? I often work with investors that come down from New York, Jersey and Boston. Some people believe that Hartford is an emerging market.
CT taxes are relatively high and the CT landlord/tenant laws tend to favor the tenant which isn't favorable for the investor. However, my properties are in CT and they cashflow pretty well. Just have to account for the occasional deadbeat that is a lifelong renter who knows that they can "squat" in an apartment for several months before the courts force that individual to get out.
We are currently investing in the Southeast along with many other investors. Assuming you are comfortable with investing out of state. Southeast (Florida, GA, NC) are not too much of a hike for you to travel to.
One of the most important things to keep in mind is to make sure you are very knowledgable of whatever market you choose to invest in, as well as the submarkets within that market. We typically start by choosing areas with significant population growth and job growth (along with other economic factors) and start to do our research based on that. Once you start putting together your team in the area, they will be able to help you determine where the best areas in that market would be to invest.
Hope this helps! Good luck! Let us know if you decide Southeast if there is anything we can help you with!
@Arthur P. - The property taxes are fairly low, no income tax on salary and wages, 3.2% unemployment, decent population growth, affordable, good for cash flow, decent weather, cap rate in th 6-8% range.
@Rick Versace thank you for the great information. Seems like SE is the location to be in from my research. Let’s connect! Looking to get into a big multi family
The best cash flow can be found in the Midwest or NE in slow growth areas. Also, Mississippi and Alabama have solid cash flow. I would look for markets with around a 1% annual population growth over the past 5 years.