Starting out in an expensive market (North Jersey)?

Question

So I'm new to REI and I'm looking to make my first deal.  I live in Northern New Jersey and it seems like properties all around me are very expensive.  Is it me or is this the truth? Am I not doing a good enough job of researching for good deals?  If so, what tools are available when analyzing markets?

It might very well be that I haven't developed the skill of finding those good deals yet but what if that's not it?  Like I said, I'm new at REI so let's say the market around me is overvalued.....

How do I start my investing venture?  I'm looking for possible approaches.  All feedback is appreciated.

- Ersi Bice

Mary B. · Answer

@Ersi Bice

Northern NJ is pricey mainly because of the close proximity to NYC. I can't tell you which market you can or can't do business in -- to each his/her own. It depends on your access to funds and for a MFR in NNJ its going to be costly even at a discount. Spend some time getting to know your housing market, make some REIA appearances(in person network), get in some BP podcasts and blog readings and with more education you will be able to make a better decision in time. My coin.

Kudos,

Mary

P.S. Welcome to BP :-)

Mark Nolan · Answer

@Ersi Bice

Welcome to Bigger Pockets. Consider sending messages to other members for specific guidance.

Ersi Bice · Answer

Hey @Marcin Ferenc. Since I'm just starting out I'm looking for dublexes, preferably triplexes, and quads.  Then eventually work my way up to multifamily.  I want to buy and hold while collecting cash flow and also putting in work wherever I can to add value to the property so that I can later trade up.

I noticed you have some experience with the local market and own two triplexes.  Congratulations! Since you've been in the game longer, what areas do you think are best to focus on and what strategy do you use in finding good deals?  I'm not looking to park myself and focus on only one city.  I'm open to anything within a 50 mile radius from me.

Marcin Ferenc · Answer

Hi @Ersi Bice. I am from north jersey as well and its true that properties in good towns here are expensive. What type of property are you looking for, SFH, Multi? What kind of deals are you looking for, flips, rentals, wholesaling? Do you have a town chosen in which you would like to invest in?