NYC Out of State Investors

NYC Out of State Investors

Investor · New York CIty · Member since 2020 · 19 posts · 18 votes

Hey everyone,

I live and work in Manhattan and have been interested in getting my first out-of-state rental for over a year without action. My focus has shifted a bunch of times between FL or maybe more local like the poconos. Anyone in a similar situation and interested in meeting up for drinks / coffee, after work / weekends? I figure with more people in the same situation, we can help each other out and have some sort of accountability.

Thanks!

Eric

6Reply
157 views

Most Popular Reply

Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
4y

Metro Detroit offers many options for meeting the 1% Rule and relatively high ROI.

Follow our "Deep Dive" series we're doing about Metro Detroit cities and City of Detroit Neighborhoods: https://www.biggerpockets.com/...

The two most common mistakes we see investors make, over & over again, are:

1) Not understanding and running their own ROI numbers

2) Not having a clear understanding of the type of asset a property is

In our opinion, your best team member should be your Property Management Company (PMC). They have to deal with any property you buy every month until you sell or terminate them. Everyone else on your team will be transaction-based and not really involved after a purchase.

We're in the Metro Detroit area, so you may want to follow our blog here on BP, but at least read the following posts:

How to “Screen a PMC Better than a Tenant”: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

In our experience you will need to:

1) Learn to "Maintain to the Neighborhood", not your personal standards

2) Tenant-Proof everything you can

  • Hard surface flooring, not carpeting (too easy to trash)
  • Same basic paint for everything
  • No garbage disposals for them to break
  • Only spring-type doorstops also with plate on the wall
  • Glue rubber mats under sinks to prevent water damage
  • Sheet aluminum on walls around stovetops, for easy grease removal
  • Towel racks - screw 1x3 to wall studs, then screw rack to that
  • Install low-profile downspout ext, not aluminum that always disappear
  • Plan on cleaning gutters and leaves up in the fall as tenants won't
  • Avoid garage door openers

3) Have a great application screening process:

  • Check credit for evictions & convictions, utility collections
  • Focus on employment/income stability
  • Require bank or debit card statement - you'll be surprised what they spend their money on!
  • Make surprise visit to their current home to see how they treat it - that's how they'll treat yours!
  • Deliberately have a few challenges in your screening process - it will weed out "entitlement mentality" problems

4) Allow payment plans, but create system to track when payments due, so they don't keep falling further behind

  • You will need to call them on due dates or they will fall further behind
  • Be prepared to give a strong NO when asked if you will change rent due dates to "make it easier" for tenants to pay rent based upon their SSI or paycheck dates. This shows total lack of budgeting and is a sign they will only fall further behind with more excuses.

5) Have a defined eviction process, but allow 3-5 days of flexibility for inevitable slow-pays.

6) Find handymen that live in an area only 1 Class higher than your property. Sending a Class A handyman to a Class C or D property will waste your money. Send Class B to C and Class C to D. They will also get along better with the tenants.

Let us know what questions we can answer for you.

See this reply in the discussion

63 Replies

Jump to latestLatest
  • Investor · New York City, NY · Member since 2014 · 289 posts · 374 votes
    4y

    Ahh, I missed this. Oh well, maybe next time.

  • Member since 2022 · 28 posts · 8 votes
    4y

    @Eric Ng Wish I saw this earlier! Please keep me in the loop if you get together again.

  • Member since 2022 · 1 post · 1 vote
    4y

    Wish I saw this earlier. How did the meeting go? Was anyone able to use the info they got to make a move? Hopefully another meet up is planned so we can attend 

  • Attorney · Durham, NH · Member since 2019 · 292 posts · 126 votes
    4y

    Native New Yorker, invested in FL and elsewhere. Happy to chat.

  • Real Estate Agent · Minneapolis · Member since 2019 · 338 posts · 219 votes
    4y

    Is NJ considered out of state?? Lots of good opportunities across the river in Hudson County!!

  • New to Real Estate · NYC · Member since 2019 · 45 posts · 18 votes
    4y

    Awesome post! Wish I saw this earlier as well. I was looking to invest out of state but not too far from my hometown, Queens, NY. I was first looking at NJ, Newark and Elizabeth specifically. I did not find what I wanted and so I changed my radius. I started looking in CT, and found a nice gem in Bridgeport. Now I am house-hacking for a year now.

  • Member since 2021 · 14 posts · 9 votes
    4y

    How about we all meet up on Sunday, the 6th or 13th somewhere in the city? Last meet up was great but we definitely need a quieter place to chat more peacefully if anyone has location ideas? 

    Looking forward to meeting some of y’all! 

  • Investor · New York CIty · Member since 2020 · 19 posts · 18 votes
    4y

    @Allison Black

    Thanks for following up! I can't do those Sundays but am thinking another HH during the week of the 21st.. potentially that Thursday 3/24. I definitely agree that the perfect pint was too loud.

    Definitely feel free to set up on the Sundays you are available though! I'm sure there will be enough interest with how many replies this thread has been getting.

  • Investor · Staten Island, NY · Member since 2016 · 59 posts · 35 votes
    4y

    Hi everyone ! My names Frankie I’m late to the party I’m from Staten Island Ny and am looking for local like minding people to meet and connect with ! If you guys are meeting again I’d love to join please !! 

  • Developer · NY · Member since 2021 · 131 posts · 106 votes
    4y

    Eric and I will be planning another networking event later this month.  Stay tuned all :)

  • Member since 2021 · 74 posts · 49 votes
    4y

    @Daniel Cohen late to the party but I also live in Brooklyn and work in Manhattan as a nurse. I also would like to invest in the New York area. I’m actually interested in the Dr Joe strategy since this market is so expensive. You are right the entry point is so much.

  • Member since 2021 · 74 posts · 49 votes
    4y

    Does anyone think Dr. Joe’s strategy with section 8 tenants could work in the 5 boroughs?

  • Investor · Brooklyn, NY · Member since 2020 · 1 post · 2 votes
    4y

    @Andrew Jennings Freerks I'm interested in next HH as well!

  • Developer · NY · Member since 2021 · 131 posts · 106 votes
    4y

    @Jezelle John My experiences with voucher tenants has been pretty positive.  Only negatives have been the non-profits and govt agencies I have to deal with and the paperwork.  The time it takes to fill an apartment can also be elongated due to the bureaucracy.  My friends have had really bad experiences with voucher tenants, so I know it can go both ways. 

  • Member since 2022 · 6 posts · 3 votes
    4y
    Quote from @Andrew Jennings Freerks:

    Hi Eric, I would be down for meeting up.  In the past I owned 55 units in Detroit, with the battle scars to show :)  Next week I am closing on a Chicago foreclosure, so we should have plenty to talk about.  Do you want to jump on a call to discuss or plan to meet in person?


     Do you still have any of those 55 units?

  • Developer · NY · Member since 2021 · 131 posts · 106 votes
    4y

    @Timothy Goncalves I sold them all after about 18 months.  The headache of managing my property manager became too much, and the appreciation wasn't worth the struggle.  Therefore, I sold those assets and bought properties in the South Bronx, where I could self manage and knew the appreciation would be substantial. 

  • Member since 2022 · 6 posts · 3 votes
    4y
    Quote from @Andrew Jennings Freerks:

    @Timothy Goncalves I sold them all after about 18 months.  The headache of managing my property manager became too much, and the appreciation wasn't worth the struggle.  Therefore, I sold those assets and bought properties in the South Bronx, where I could self manage and knew the appreciation would be substantial. 


     I never thought about the South Bronx. How many units were you able to purchase in The bronx from 55 Detroit units?

  • Developer · NY · Member since 2021 · 131 posts · 106 votes
    4y

    5 jaja but the cap rate is better, because management and maintenance costs are much lower. The appreciation is also 7%+ annually in the South Bronx. Overall, I am seeing a 12-15% return annually (net rent + appreciation). CoC is closer to 30%

  • Member since 2021 · 4 posts · 2 votes
    4y

    Hey all - first time poster in BP and I live in Manhattan - just about to purchase my first property outside of NYC and would love to meet up and meet people if this is happening again in March, any plans for that?

  • Developer · NY · Member since 2021 · 131 posts · 106 votes
    4y

    Hello everyone,

    I hope you are enjoying this beautiful spring day.  Eric and I will be hosting another happy hour on Wednesday April 6th from 6-9pm.  Location TDB but somewhere close to Midtown.  We'll let you know once we identify a spot, and as always feel free to invite any of your friends who are interested in changing their lives through real estate.

    Talk to you soon and have a great weekend.

  • Member since 2018 · 3 posts · 2 votes
    4y

    This seems like the exact group of people I've been wanting to meet for a while now. Hopefully I'll be free when you all do another meetup.

  • Roslyn Heights, NY · Member since 2017 · 4 posts · 2 votes
    4y
    Quote from @Yosef Lee:
    Originally posted by @Eric Ng:

    Hey everyone,

    I live and work in Manhattan and have been interested in getting my first out-of-state rental for over a year without action. My focus has shifted a bunch of times between FL or maybe more local like the poconos. Anyone in a similar situation and interested in meeting up for drinks / coffee, after work / weekends? I figure with more people in the same situation, we can help each other out and have some sort of accountability.

    Thanks!

    Eric

    Hey Eric, 

    I was in a similar situation as a W2 working full time, doing self education, and realized I needed to take some action. Finally I closed my first deal 44 Unit in KS in December 2020 and this is a post I put up in Biggerpockets thereafter. This gave many beginner friends some idea as to where to start. Hope it helps. 

    Also, I'm planning an out of state multifamily investors in-person meetup in Manhattan sometime in May and already have a list of about 30 people who want to attend. Let me know if you want to be on the list so that I can notify you later for more detail. Yosef   


     Hi I'm interested in the meetup! 

  • Investor · New York City · Member since 2021 · 10 posts · 2 votes
    4y
    Quote from @Andrew Jennings Freerks:

    Hello everyone,

    I hope you are enjoying this beautiful spring day.  Eric and I will be hosting another happy hour on Wednesday April 6th from 6-9pm.  Location TDB but somewhere close to Midtown.  We'll let you know once we identify a spot, and as always feel free to invite any of your friends who are interested in changing their lives through real estate.

    Talk to you soon and have a great weekend.

    Hi Andrew, I would love to join. Please keep me posted. Thanks!
  • Investor · New York City · Member since 2021 · 10 posts · 2 votes
    4y
    Quote from @Yosef Lee:
    Originally posted by @Eric Ng:

    Hey everyone,

    I live and work in Manhattan and have been interested in getting my first out-of-state rental for over a year without action. My focus has shifted a bunch of times between FL or maybe more local like the poconos. Anyone in a similar situation and interested in meeting up for drinks / coffee, after work / weekends? I figure with more people in the same situation, we can help each other out and have some sort of accountability.

    Thanks!

    Eric

    Hey Eric, 

    I was in a similar situation as a W2 working full time, doing self education, and realized I needed to take some action. Finally I closed my first deal 44 Unit in KS in December 2020 and this is a post I put up in Biggerpockets thereafter. This gave many beginner friends some idea as to where to start. Hope it helps. 

    Also, I'm planning an out of state multifamily investors in-person meetup in Manhattan sometime in May and already have a list of about 30 people who want to attend. Let me know if you want to be on the list so that I can notify you later for more detail. Yosef   


     Hi Yosef - Can you please add me to your list? Would like to attend the in-person meetup you're planning to host in May. Thank you!

  • Member since 2022 · 1 post · 1 vote
    4y
    Quote from @Andrew Jennings Freerks:

    Hello everyone,

    I hope you are enjoying this beautiful spring day.  Eric and I will be hosting another happy hour on Wednesday April 6th from 6-9pm.  Location TDB but somewhere close to Midtown.  We'll let you know once we identify a spot, and as always feel free to invite any of your friends who are interested in changing their lives through real estate.

    Talk to you soon and have a great weekend.


    Hi guys, 

    I would love to meet you guys on April 9th so I will keep an eye on this thread for a meet-up location. 

    Thanks,

    Oleg

Join the conversationCreate a free account to reply, vote on answers and follow this thread.