Newbie in Suffolk County, NY

17 Replies

Hi my name is Christian Barroso, I am in Suffolk County, Long Island, NY.  I am a cook in a restaurant in a hotel.

I am very new to real estate, I have no properties yet. I have watched a few webinars and read many articles and blog posts on Bigger Pockets. My goal is to get into rentals and become a landlord in Long Island, preferably Suffolk County.

I plan on buying my first property this year and hope I can get a lot of advice from the Bigger Pockets forum.  Are there any people here from Long Island who can give me their opinions on rental investing in Long Island?  I have found a lot of rental listings online but I have difficulty finding worthwhile properties for sale.

I want to use an FHA loan to purchase my first property. Would that be a good idea? Properties on Long Island are very expensive.

Congratulations Christian, very exciting to be entering the real estate world.  I live in islip but I don’t invest in New York.  The taxes are far too high and the cap rates are too low.  Ohio, texas, Kansas, Indiana are all far better with much lower prices and much easier entry points.  Good luck

JJ

I've read and considered long distance investing but I am hesitant to do so.  I don't have any experience and I don't want to make a serious mistake in my first investment, especially if I am unable to be there and handle it in person.

Hi @Christian B. , I would recommend continuing to self educate yourself thru the BP Podcast and ones similar to it. As well as picking up books like David Greene's 'Long Distance Real Estate Investing". I am new to RE investing as well but have gained more confidence/knowledge to make the leap, due to a continuance in self-educating myself. Good luck on the RE journey. 

Hi Christian,

While I haven't done any deals personally, I would consider looking to rent by the room to Stony Brook University students. We have a TON of international students who all live here during the semesters. A 5 bedroom house with each room renting for ~$700 a month should more than cover a mortgage.

Aside from this, I'd look at a house with a legal permitted accessory apartment and either rent the apartment or live in it and rent the main portion. Might not cover the whole mortgage, but it'll get the ball rolling and you'll be managing a tenant, networking with agents, and building equity that you can borrow against to deploy on a 2nd deal.

Good luck and keep us updated when you get your first deal!

@Christian B. I’m sure some college kids can be a pain to rent to, but Stony Brook is definitely not a party school which is good. I’m still is college, but I’m learning as much as I can about our market(the taxes are brutal) so when I graduate I can jump into a deal. I know there’s some bigger pockets meetups around here in Bayshore I’ll be attending once a I graduate and have the income to qualify for loans. 

@Christian B. I'm an ex Long Islander. Grew up in Nassau County. My very first taste of real estate was a small cottage in Bay Shore. If I remember correctly I made about $8K on the deal and I was hooked. I then did a deal on a foreclosure in Hempstead and made about $25K. I was double hooked. That was 20+ years ago, but even then LI prices and taxes made good deals hard to find. NYS is quite tenant friendly and if you're not careful a shrewd tenant will play the system and you'll find yourself on the losing end of a long, multi-month money sucking eviction process. My advice is to echo what others have already said: go west, young man. Distance deals, or virtual deals as they are referred to now, needn't be risky if you know what you're doing and choose the correct strategy.

Welcome to bigger pockets and the real estate investing community! Long Island is a tough one because so many decide to buy rather than rent, but that doesn't mean there aren't any renters out there. Also with the high tax rate on Long Island you have a great opportunity to utilize that to your advantage for renters. Good luck, you'll do great

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