Accountant · Baltimore, MD · Member since 2016 · 74 posts · 29 votes
Hi, I'm just starting out with investing. My work and life experience have given me a good background and I'm ready to take the next step. Because I live in NJ, between prices and taxes, I'm priced out of going local. So having done some research, I've become interested in going out of state Turnkey but I'm a bit daunted by trying to pick a market and a provider from hours (or a plane ride) away. Any advice or suggestions would be much appreciated.
Former NJ Resident and current owner of properties in NJ living in Philadelphia. The market here is extremely robust from SFR to Multi Family and taxes still allow the deals to work.
Antonio, I totally agree but I have two teenagers. When they are both out of college in five years I will be free!! But I don't want to wait five years to start my journey to independence, thus out of state investing. Sounds like you made a good decision.
Investing in New Jersey is far from impossible. There are markets that cash flow well for the buy and hold investor. I am in Manville, a few investor friends and I are working on developing turn key flips for investors that should help new investors buy into cash flowing properties for a reasonable ammount. Send me a message and we can talk.
Hi Tracy
Welcome!
I am in NJ and own turn key properties out of state but also in NJ and I have targeted my focus now on Elizabeth and Newark. It depends on your criteria but there's a ton of options In NJ
Former NJ Resident and current owner of properties in NJ living in Philadelphia. The market here is extremely robust from SFR to Multi Family and taxes still allow the deals to work.
If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.
@Larry Fried Thanks, that's a market a couple other people have mentioned and I like. With some of the info I got on BP, I'm looking into it.
@Joseph Scorese We met at the investor club meeting in Red Bank. You got me interested in Philly and I went down and drove some neighborhoods. I may have found what I'm looking for, but I've got your card. Thanks!
Philly is certainly a great market to invest in. Between the Health and Education fields the economy is on fire here. Although I would advise you to get to know this city intimately. A House on one street can sell for $400k, walk 3 streets west and you won't be able to sale a new reno if your bank account depended on it.
I have a 10unit turnkey in north east philly giving 11.82% cap rate and 25.32% COC return with a built in 7,575 reserve every year if financed at 4% 30 year amortized.
Totally understandable on it being daunting to pick a market and provider. A lot of it is really just finding a lot of options out there, comparing them, seeing how they feel, seeing what people are saying about them, and worst case you can always drive or fly out to one you like and check out all of the operations and see how you feel about them in person (that made a big difference for me when I started with turnkeys).
Philly is a hot turnkey market right now...that is probably your most driveable. There are some other good ones with good providers- Indy has the best provider I know right now. Chicago has been really good to work with, KC is a good market...
Hi @Ali Boone, thanks for the post. I'm definitely looking at Philly to start (compared to where I live, houses are practically free there!) but I will check out the others for the future. I'm a bit late to the RE game so my timeframe is shorter to scale up to generating enough passive income to cover my expenses. While I could afford one investment home in NJ, it would take a long time to get to #2 and beyond. I see way more potential in out of state because I can leverage my capital so much more and scale up to 2-3 within a year if I find the right ones, and then upwards from there. I don't want to be looking at cubicle walls for the rest of my life... I'd much prefer some hiking and mountain views.
It's been since the spring since we last chatted... I'm looking for advice... I was 100% ready to get into turnkey investing back in the spring and the literally the day I submitted a mortgage application I lost my job, which of course threw a monkey wrench in my plans. I got a new job after a few months but it hasn't worked out and I am quitting and have to find another new one. So my real estate investing plans have taken a six month hit. I still have my investing capital, but not having a job (even thought I only want cash-flowing properties) is a problem. I'm looking for suggestions for alternate financing - any ideas?