First time REI question. Long distance or home area advice.

[Mark Bistis]

Hello All. I am brand new to bigger pockets and real estate investing. I have been researching buying rentals for the past 8 months and am starting to complete my own valuations using valuation calculators and now BP calcs. I even have started practicing walk throughs at properties with no intention of buying. I am now just getting comfortable with the idea of actually pulling the trigger on jumping in. My goal is to buy for cash flow but would not mind the equity that comes with it overtime. I am looking to hold longterm. I live in New Jersey and real estate is not cheap here. I currently have ~$100K to use toward a down payment without tapping into my other investments. My options are really limited to smaller SFH or duplexes that need repair. I am in the construction field and can easily undertake a mostly cosmetic project (kitchens/bathrooms/finishes). However, I am finding that I can buy long distance for much cheaper and the rents support a more healthy cash flow situation than real estate in the northeast. I have not looked into long distance REI as much, but I know many investors do invest long distance especially in the mid west. Being that this is my first rental property purchase, should I be more focused on purchasing in my back yard and learning the process, even though finding deals right now is more difficult? Or would putting this on hold and learning more about long distance investing be a better option?

Thank you!

[Bradley Dosch]

Hey Mark, it's great to hear you've been soaking in the knowledge lately! I don't know anything about your personal situation but it sounds like house hacking would be perfect for you! $100k is plenty for 3-5% down payment on a house hack. This is basically training wheels for REI. It's really hard to mess this up and really easy to hit a financial home run. I would use that money for the down payment, closing costs and renovations for a house hack in an awesome location where you can live and rent out other space. You'll most likely have plenty of money left over for reserves and other investments. In a year you can repeat this! Good luck Mark!