Fellow NYC-ers. Where do you invest?

37 Replies

hey Guys,

Being in Brooklyn, I am always looking out for potential multi family deals close by but out of NYC just because of my budget.  A few places I have my eye on are Garfield, Trenton, Yardley, East Stroudsburg, Easton, Allentown, even Mount Vernon. I am wondering where some of you locals began investing if you did out of the city and why? Also how has it been managing something farther away. Looking forward to reading opinions and stories!

Before investing Out of State I looked in our Local Market, after a year of looking and numbers not makings sense I decided to look elsewhere.

I decided as a beginner Im better off investing in a Landlord Friendly State, I landed in NC. The markets I'm in are now very competitive but I am becoming creative with my offers to have an edge.

As with everything there are Pros & Cons, in the beginning expect to travel more than you might like but once you have a system and a team in place its smooth sailing. I now only travel, to find new Markets, make new acquisitions or meet new team members.

Before looking outside NY state I considered Upstate NY but I decided I prefer flying 2.5 hours to avoid the snow than driving 2 hours into the Snow... There are many investors in NYC that invest in Upstate because prices are much better than in our market, it wasn't for me.

Biggest plus I believe of investing OOS is if you succeed you will have the confidence to branch out to any Market. I recently decided to diversified & I'm now in Contract in a new market..

If you are considering investing OOS read @David Greene   Long-Distance Real Estate Investing book, I heard the audio book on my recent trip. Even though I have a little experience I found it helpful to know I'm already practicing what David is preaching and book gave me a couple of new ideas, I recommend reading it..

I invest in Philly. Because it’s the 5th largest population and still affordable. (For now)

The RiverWard section is growing and fast and I can even use an AirBnb model with no problems to generate even higher returns.

I have a team there and my senior partner who still lives in NY has been investing there since 1999.

I always wondered how investors from NY invested in real estate. I always said if I could pick up a MFH property in Brooklyn or the Bronx I would be successful.

As for Manhattan, I’m not even going to set my sight that high...yet! :)

hey @Raul R. that is a very good point regarding southern properties and definitely the weather. I actually have the book on audiobooks and started listening to the first parts a few days ago. Mind me asking your first deal OS? 

Hey @Evan Torrens Philadelphia is a city close enough that is interesting, I have not been down there a lot except to look at tax sale properties which were obviously in mostly undesirable neighborhoods. Coming from a construction backround, I was somehow molded into buying cheaper and remodeling but I am trying to get into the more smaller upgrades on properties to being up value instead of dumping 50-60k to renovate. 

@Milan Obradovic

We do flip properties in and around East Stroudsburg. We have 3 single family rentals in that area as well. I'm looking into Philly now, was actually out there yesterday, because we're looking to do more units. We're looking at 3 to 4 families in Philadelphia for now. We're possibly looking to do something larger after we get our feet wet. 

@Milan Obradovic

Im a buy and hold investor and primarily focus on the Stroudsburg market of PA. We purchase value add multi families, do a full rehab and rent long term. Although there is not much inventory the deals we land do produce a good amount of cash after debt. Good Luck!

@Ceasar Rosas That is awesome. East Stroudsburg is an area I am more familiar with. I have been there many times, do they have a law like Wilkes Barre if you reside 20 miles outside of the city that you MUST have a property manager? Philadelphia is even a little closer from me, about and 1:15min drive.

@John Geldert Thank you for the insight! I am almost certain you get off market deals when they come up because anything located on Zillow, Trulia, etc is overpriced ATM.

I invest in Allentown due to strong returns and favorable landlord laws. The tenants might not be the best, but the returns, appreciation, and proximity to NYC were the deciding factors for me. Where else can you find an area where every porperty on the MLS meets the 1% rule.

@Raymond Y. mind me asking what do you consider favorable landlord laws? Quick evictions? Do you mostly do a lot of upgrades or look for something that has been fixed up? Thanks!

@Milan Obradovic Favorable landlord laws meaning I am able to kick tenants out in a month if they don't pay rent. So far, I've only been under contract for two properties in my REI career. One needed cosmetic updates and one needed pretty much a full rehab. As long as the numbers worked, I wasn't worried to tackle on a big rehab project.

@Raymond Y.

That is a heck of a lot better than NYC. Especially if the tenants have children. Have you done Brrr in Allentown on those two deals or just down payment and rent?

I live in Brooklyn and right now buying in Newark, NJ which it’s pretty close to NYC.

@Milan Obradovic I am trying to do BRRRR right now on my first property. I won't be able to pull all of my money out, but I should be able to pull enough out to buy another property. This deal was a little more turnkey, so I wasn't able to force as much appreciation. How did you get interested in Allentown?

@Milan Obradovic

I have been investing out of state for over 10 years now.  The best advice I can give you is have a good system in place and a good team in whatever area you are investing in.  I also recommend working or talking to someone who has invested out of state successfully BEFORE dipping in on your own.  It doesn't hurt to mitigate your risk as much as possible by learning from others first before putting your money out there.  

@Raymond Y.

I wish you lots of luck on your first BRRR. From what I understand That strategy is most efficient when it comes to adding SF to a property. An extension, a floor, extra bathroom etc. Those seem few and far between for starting out in these areas unless you have extra cash on hand. My interest in PA generally started through tax sales. I began investing in those properties and was able to aquire 3 within the last year and a half, Bucks & Luzerne county. I am in contract to sell two so my goal is to use the money into a smaller scale BRRR. Allentown was one city that I looked at tax sale properties. It's size was appealing as well as its smaller entry point, even though I went to their tax sale with 10-15k to spend and realized 20-30k was about the cheapest houses were going for.

@Steve Kontos Thank you for your feedback, the whole team is an ideal way to go. Where out of state have you invested? I am in the process of going to REI meetings and connecting with people. It is tougher than it seems just because I feel my current value to provide is not on par, have not met someone who is willing to take me under their wing. Reading posts, stories, books, and listening to podcasts are all inspiring. But definitely can not take the place of real world experience.

Im in a similar scenario as you Milan. Live in queens. Attempted to do MF here but just nothing that makes sense. Looking to attend a couple of REIA locally too. Maybe ill catch you there..

In meantime Ive been slowly growing contacts in Nashville.  Also looking into Raleigh.

@Matthew Iulo Hey, your areas of interest are definitely not a drive away. What has been holding you back, knowledge or finances so far? My mindset is to have money on hand for an investment then start reaching out to agents and start building a relationship. I do not feel fear in buying something, I am more into learning to analyze different markets and either buy one BRRR or one with a smaller down payment to cash flow but make sure I have enough cash to support both types of deals, since almost all investments need money for some type of upgrades. Btw I am attending the SJREIA in Cherry Hill, NJ 3/26.

There are a ton of NYC investors that come to Philadelphia.  We see them and work with them every day.  It's the largest cross city investment relationship in the country from what I was told.

@Ian Walsh that would make sense due to the proximity, size, price points. Do you invest yourself in Philly? 

I invest in the Atlanta Metro area. I use a property manager.

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@Milan Obradovic  That is an interesting way to source deals. Where can I learn more about these tax sales?

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