Hi @Alex Pineiro !
The way us investors analyze deals and look for financing is a very similar way you would analyze deals in other markets. You will always have a mortgage payment eventually, pay interest, insurance, water/sewer, save for your reserves such as vacancies, cap ex, and repairs, and of course, can't forget property management if you are not planning to manage them yourself. There is always some other misc expense related to an specific property/transaction.
I feel like Property Management is probably the one thing that is difficult to incorporate in NJ since if you account for all the items I just listed rarely any property would make sense to purchase off the MLS at least.
Financing is also similar, the only difference in comparison to out of state investing is that you will not find a lot of seller financing in the area. However, every deal is unique.
Overall, Biggerpockets does a great job at teaching how to analyze deals, everywhere you go, the calcs will not vary much, however, your returns may :) ..... Best of Luck!
Hey @Alex Pineiro we're on the same boat! It's definitely a tough market to break into, I've been looking for a 2-3 unit property for 4 months now, and have been beat out of 4 bids; some buyers are offering a lot more than asking price, which is not always possible for me given my pre-approval amount. Another problem I think is buying directly from the MLS, some people say there are still good deals from the MLS, but personally I've not had much luck.. So at the moment I'm looking to meet wholesalers, and other investors as well.
I'm still searching though, and believe I'll still find a decent deal, with some rental income to make after paying down mortgage/expenses every month.
Something that I decided to do is obtain my real estate license, I'm currently taking the course now, will be done by mid September. This has allowed me to learn much more and meet some great people in class. I plan on taking the test shortly after, and joining a broker in the near future. So maybe something you would like to look into.
Also, if you have not gotten a pre-approval yet, definitely try to get 2-3 to ensure they all match. And keep looking, keep the drive alive!
Where in nj are you interested? I am a real estate investor/ real estate agent in central nj, I might be able to help.
@Alex Pineiro Hi Alex, just wanted to say good luck to you. Your story resonated with me, as I am a young and new investor in NJ who is just finishing up a few months of "research mode", raiding my local library and slowly trying to sift through the ~300 awesome BP podcast episodes for nuggets of wisdom. As I get ready to move from general RE research to more target area specific stuff, I am definitely feeling nervous that I am about to discover just why everyone says this area is so tough. Hope everything works out - let us know if you end up making a deal!