Thanks for the replies....even Dale's insight.Yes I totally agree the cash flow is just not there and I would not invest in a property that did not have positive cash flow.That is why I stopped buying in 2004.The purpose of my post was to hear different ideas as to which area would be a better investment based on their strengths and weaknesses.I was a bonehead and used a 2 family example when realistically only a 3 family in either area would be a consideration.

. - in terms of nyu- if that is even a consideration- look at the shack school of real estate.

I will definetly take it all into consideration.......Scott

One thing to take into consideration is that they will be requesting for closing costs (3-3.5% ) so be prepared.

Ii will run your costs up considerably, even though the EPA estimate the added costs to be in the neighborhood of $75 per job ?!?!?!?!?

I know that sounds unreasonable, but it is a consideration that needs to be taken.

That doesn't mean the net worth is not growing it or that income is not being created.People like Warren Buffet may add a considerable amount of unrealized income to their portfolios every year.

Find a bank that will loan up to 70% of a "subject to" appraisal amount (ie. an appraisal that takes into consideration the work that you will be doing and thus comps the property against other good-condition "full price" properties that have sold in the area.)

That drives the costs up considerably.

I bought it 5 years ago for $350k, it's now worth $275k, and i have $200k left on my current owner-occupied loan.Asset protection is my first consideration.