All Forum Posts by: John C.

that was really hard to read.  

Have you tried looking into the Bronx?  Relatively close by, cheaper than LI and the rest of NYC, and still able to rent to the student/hospital crowd.

My friends used to invest in Binghamton U.  They were a group of 3 investors who bought a couple dozen houses and took turns driving up once a month from NYC to check up on the properties.  Eventually, they all got sick of the monthly trip that would take them an entire day back and forth, not to mention managing repairs etc.  They sold for a slight profit and went their separate ways.

It's tough managing a rental from a distance.  I wouldn't want to manage it myself.  Otoh, the management fees would eat up a significant amount of cash flow.  It'd have to be a pretty significant cash flow to justify all the trouble you'll go through.

4.875 % is also quite high, even as an investor.  I would shop around for better rates.  All the little expenses are eating into your profits.

Hi Jennifer,

No expert here.  But, I think there are better deals out there than what you describe.  And, if you live close enough to your rental property you should definitely manage it yourself and save the management fee.  You'll learn a lot more in the meantime, you'll pick up skills to be used in future deals and save even more money.  I can see using a property manager if I had many units or if my properties were out of state.  I definitely recommend getting your hands dirty from the start and learning how to manage your own properties. 

I nearly made the mistake of investing in Paterson NJ when I first started out about 10 years ago, thinking that a cheap property was the way to go since I didn't have a lot of cash.  I'm so glad I pulled out of that deal at the last minute.  I thought that merely buying a rental home would start me off on the way to financial freedom.  It was even going to cash flow a few hundred dollars per month, on a purchase price of about $150k.  But, living in Queens, I would have had to rely on a manager for nearly everything.  There were just too many variables outside of my control.  It would've eventually put me in the hole after a few years of hard wear and tear, and no appreciation to show.  Not to mention I would probably be having a hard time getting rid of it today.

Your first rental property is very important.  Take the time to research some more.  You do not want to be in the hole/cash flow negative/cash flow even every month.  You want a nice cash flow to cushion you in case of vacancies, repairs, etc. 

Good luck!!

Lol.  Sounds exactly like a street preacher