Looking what market to invest in as a beginner

[David Pimentel]

Looking to begin investing as a beginner I live in NJ and prices are a bit high for what I can afford. Especially since I own my primary residence so house hacking isn't an option. Any ideas where I can look to invest i do have a good amount of equity in my home to use as a down-payment. Any suggestions. Thanks 

[Melissa Justice]

@David Pimentel,

Hey! I actually grew up in New Jersey as well, so I completely get where you’re coming from - it’s a tough market to cash flow in unless you're buying with a ton of equity or appreciation as your main play.

Since house hacking isn’t an option for you, a lot of investors in your shoes are looking out of state, especially in Midwest and Southeast markets, where your equity can go much further and actually produce positive monthly cash flow.

Here are a few strong options to consider for buy-and-hold rentals:
Columbus, GA – Affordable price points, solid rents, and a stable tenant base.
Ocala & Citrus Springs, FL – Growing population, no state income tax, and landlord-friendly laws.
Memphis, TN – Strong rental demand, established property management infrastructure, and high cap rates.
Akron/Canton, OH – Low purchase prices and consistent rental income.
Albuquerque, NM – Often overlooked, but has strong appreciation potential and decent returns.

You can use the equity from your NJ home as a down payment on a turnkey single-family rental or a light value-add opportunity in these markets. That way, you skip the headaches of a heavy rehab and still gain cash flow from day one.

If you’d like to dive deeper into any of these markets or need help evaluating deals, I’d be happy to point you in the right direction!

Best of luck!