So here's my question. I'm new to real estate but I'm coming to the table with experience in stock market value investing. I'm very attracted to deep value situations, which to me means gross cash flow generation above the 2% mark (to give a general metric). I also prefer to target the lower end of the middle class type neighborhoods, to avoid bad neighborhood headaches. From what I've been reading, one city which fits these criteria is Milwaukee. I would love to hear if anyone knows of similar areas/cities that have similar values, especially within a 2-3 hour drive of New Jersey. I'm interested in targeting a city, spending half a year to a year learning the neighborhoods and economic patterns, then starting to invest there. I just want to know ahead of time that the city has an abundance of values that fit my criteria (as opposed to the occasional deal), so that's why I'm posting the question.
Thanks for any and all insights and responses,
What's keeping you from investing in Milwaukee?
I'd be very interested in finding a Milwaukee in NJ.
Hey Bram, thanks for your response,
For me, the issue with Milwaukee is that it's not a place I know personally. I'm thinking to learn it, but I live in Israel, with sporadic trips to the U.S, so I'm not sure how realistic it is. Most of my visits are to NJ because that's where I grew up and lived most of my life, so I figure it's easier to learn those areas that are within driving distance of NJ. Within NJ the only lower price point areas are Newark and it's surroundings, with attendant crime issues.
@Zev Bannett At the beginning, you should definitely consider investing near your neighborhood. Where is yours? (can't depict from your description)
@Bram Spiero There are quite a bit in NJ. First, parts of Milwaukee are kind of suburb (one of my good friend lives nearby there). But if we are talking about lower-income, relatively high cashflow neighborhoods, there are a few. Newark / Oranges / South Jersey / parts of Jersey City comes to mind.
@Che Chiu Wong my original neighborhoods are Highland Park/Edison and Bergen County. I also have family in West Orange.
The 2% kind of neighborhoods in NJ that come to mind are Philippsburg, Trenton, Irvington, East Orange, Newark, JC, Camden, etc. You could look into those areas.
South Jersey definitely has some neighborhoods outside in Camden and Gloucester counties which are more "blue collar" suburban neighborhoods where you can buy some good multifamily residences. With regards to the 2% rule though I think a lot of that will depend on how much you're willing to put down. If you're familiar with New Jersey you know that the taxes are high. While South Jersey isn't as bad as Central or North Jersey, it is still much higher than PA and Delaware, but because you're in the Philly metro market, the rent rates are not comparably higher.
To make the @ work, do the following:
Hold down the shift key and type @?
Look below this Window, and you will see a list of names of people that have posted in this thread.
Click on the name of the person that you want notified via an email, that you responded to them.
If you are a Colleague with anyone that has NOT posted in the thread, and you want them to see your post, hold down the shift key, type the @ and the first 4 letters of their First or Last Name.
Then look below this Window and click on that person's name.
Thanks Raymond:-) how do you do that on a smart phone?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!