First Rental Investment Property- MA,NY,CT

First Rental Investment Property- MA,NY,CT

Investor · Member since 2020 · 19 posts · 3 votes

Hello Bigger Pockets Community, I wanted to reach out to see if you guys can help my partner and I narrow our search for the location of our first investment property.  We are both in our late 20s with no real estate experience but see the potential for real estate as a long team investment towards financial freedom and are ready to enter and succeed in the world of real estate.  After reading Brandon's book, along with a couple others and watching some videos on the topic we believe we have all the knowledge needed to start in real estate and are ready to buy our first property.

My partner and I are looking in either MA, NY or CT.  We are interested mainly in multi-family, cashflow properties but would like a little appreciation potential as well.  A property in the 250-300k range is about our max but would prefer to purchase two separate properties most likely.  We have a couple specific cities in mind but want to reach out to the community to see if you have any specific cities in any of those states.  We also need to build our team in one of those states so any recommendations for either would be much appreciated! 

Thanks in advance,

Alex

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Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y

The real question, @Alex Mason, is where do you have pre-existing relationships. You'll need "boot on the ground" to help you research markets and make connections (assuming you don't have them yourself).

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  • Lender · Fairfield, CT · Member since 2018 · 183 posts · 82 votes
    6y

    Hi @Alex Mason - I am a mortgage broker in all three of those states. I am familiar with parts of the south western CT market. For CT, I would recommend looking into Bridgeport, New Britain, Bristol and Middletown. There are many other towns, but I would feel comfortable connecting you with investors in those areas.

    Michael Doherty, Ryan Deasy and Michael Noto would all be good contacts for New Britain, Bristol and Middletown.

  • Investor · Member since 2020 · 19 posts · 3 votes
    6y

    Awesome @Account Closed, thanks for the recommendations and connections.  I will definitely keep all in mind and will analyze those cities you mentioned.  If my partner and I do decide to invest in CT I will reach back out to you and see if we can work something out.

  • Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    6y

    The real question, @Alex Mason, is where do you have pre-existing relationships. You'll need "boot on the ground" to help you research markets and make connections (assuming you don't have them yourself).

  • Real Estate Broker · Boston, MA · Member since 2008 · 27 posts · 13 votes
    6y

    Your budget will keep you out of the Greater Boston Market where appreciation would be common but cash flow would be tough. Better for house hacking.

    If purchasing in MA your best bet would be Central, MA (Worcester area - which is on fire right now) and Western, MA think I-91 corridor.

    Cash flow and some appreciation will be available in some Worcester neighborhoods. Western, MA is pretty much a cash flow play.

    I’m not familiar with CT or NY markets. Good luck!

  • Real Estate Agent · Worcester, MA · Member since 2018 · 516 posts · 409 votes
    6y

    Northeast CT can get you cash flow, Worcester will get you some appreciation with your cash flow.  It all comes down to risk, and if you are going to manage it yourself location is HUGE

  • Investor · Member since 2020 · 19 posts · 3 votes
    6y

    @Jaysen Medhurst, that's a good point. I'm actually out in San Diego with no real connections in the area back east but my partner is in the Springfield Mass area. He is going to be our “boots on the ground” until I come back east later this summer for a bit. That is why I am reaching out to the BP community because we are basically starting from scratch and are looking for a little insight into these markets and to make some mutually beneficial connections, a little boost to get started. Thank you for the advice! I guess there really is no substitute for knowing your market first hand and being familiar with the area.

  • Investor · Member since 2020 · 19 posts · 3 votes
    6y

    @James Morrison, I appreciate the direction and recommendation. I am planning to house hack out here is San Diego where it is going to be a must. But unfortunately that isn’t really an option for us right now back east. Worchester was one of the cities we are considering. I will definitely check out the “I-91 corridor” areas to see what kind of opportunities are out there as well.

    If we do decide to invest in the MA market it would be great to connect and see if we can make something happen. Let me know if you would be interested. Either way thank you for the comment!

  • Investor · Member since 2020 · 19 posts · 3 votes
    6y

    @Brian J Allen, We are willing to take some calculated risk but considering this is going to be our first property and that it will mostly be a learning experience I do not think we will be too risky. It all depends on the opportunity though. When you say risk are you talking about investing in a fixer upper or in a lower class neighborhood or something entirely different?

    My partner and I both work full time jobs and have agreed to make the income as passive as possible right now. We plan to use a property manager.

    I see you have extensive experience in the MA market and it looks like Worcester specifically is a special place for you. If we do decide to invest in MA and our interests align, it would be great to connect. Either way thank you for the comment!

  • Lender · Chicago, IL · Member since 2020 · 53 posts · 30 votes
    6y

    Hi @Alex Mason! Happy to know you're looking in at MA as an option. I've personally been investing in MA as well (more towards the north side of Boston to chase the increase in value with the northward migration) for more than three years now. Have seen great returns for myself, so I'd be happy to connect to provide more information.  

  • Real Estate Agent · Worcester, MA · Member since 2018 · 516 posts · 409 votes
    6y

    Alex, I do recommend investing where you live until you are ready to branch out.  I think there is sense of confidence that you know the neighborhoods and you don't have to rely as much on others.  There are always local deals if you work hard enough on your network.  If you decide to come out to Worcester, MA. let me know and i will get you the full lay of the land, both from the geographic side and the economics of Worcester rents.

  • Investor · Member since 2020 · 19 posts · 3 votes
    6y

    Hello @Sam Abazari, that’s awesome you have had success in the area and interesting to learn about the migration north. The theme in the posts I am reading is that knowing the nuances of your rental market is vital. I see you have quite a history in MA and that your company’s interests align with my partner’s and mine.  Should we choose to invest in MA, it would be great to connect and learn more about your experience and company. Thank you for your comment!

  • Investor · Member since 2020 · 19 posts · 3 votes
    6y

    @Brian J Allen, thank you for your professional advice about investing in a neighborhood you are familiar with. I am newer to San Diego and have not even been out here for a year yet. I do plan on house hacking and then investing in San Diego down the road. I know I will have to adjust my strategy for this market as it is vastly different than the northeastern market my partner and I are currently targeting. I appreciate your willingness to help and will be sure to reach out should we decide on MA. Thank you for all of you input!

  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    @Alex Mason Hi Alex. You would be better off purchasing/house hacking in your market than going long distance for first investment. It’s less risk buying here and if you are targeting 300k property OOS you are putting down at least 60k, that’s plenty to do a house hack here and buy a great duplex. Your $ will go further house hacking to start than going into a market you are unfamiliar with and lower cost.

    Best of luck whichever way you go.

  • Investor · Member since 2020 · 19 posts · 3 votes
    6y

    Hi @Twana Rasoul, thanks for reaching out. That’s cool you are a real estate agent in San Diego. I would be interested to hear your perspective on real estate investing as far as the San Diego market and what you have seen in your experience. It seems like you need to really get creative and know what you are doing out here to make a smart investment. Since I am so new to San Diego and am still getting to know people and learn the area, I want to get a little more established and comfortable with the area before I make a commitment like house hacking. My partner is living in the northeast/MA area so I will have some boots on the ground. Either way thank you for the comments. I would be happy to connect as our paths may cross in the near future. Let me know if you would be interested.

  • Investor · Member since 2020 · 19 posts · 3 votes
    6y

    Hello @Filipe Pereira, thanks for the advice, I anticipate this pursuit being difficult but am confident my partner and I will succeed. Springfield was actually another of the markets we are targeting. To be honest we were both a bit concerned about the crime rates and general poverty rate we were seeing in the area. I would be interested to hear your perspective and learn a bit more about your property management company. I would be happy to connect and discuss. Thanks for your comment.

  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    @Alex Mason my heavily biased opinion is Buffalo NY is a great starter market for investors.  Good cash flow, stable market, low barrier to entry.  

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  • Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
    6y

    I think your goal for two properties with that budget is doable in Buffalo.

  • Investor · Member since 2020 · 19 posts · 3 votes
    6y

    Thanks for the input @Matthew Irish-Jones and @Khaled Morad from Buffalo. From what I have read Buffalo is quite an investor friendly market. However, Buffalo is a bit far from the radius my partner and I are targeting. From the advice I received above and considering this is my first property, something closer seems to make more sense. The Albany area is the main NY market we are considering. If we do ever venture out west to Buffalo, I would be happy to discuss that market further. In the meantime it would be great to connect. Thanks again for the comments!

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