where to invest for first time rental unit invester?

[Jack Lin]

I live in nyc it is really expensive to buy rental unit here. I have 50k and want to get my first rental unit , should I do this in another state?

[Nathan Gesner]

Quote from @Jack Lin:

I live in nyc it is really expensive to buy rental unit here. I have 50k and want to get my first rental unit , should I do this in another state?

@Russell Brazil it almost feels like a personal attack, but I know you are better than that. Please explain how Jack can spend $50,000 in your market and make "much larger sums of money" instead of the "small amounts of money" I make with my investments. With a comment like that, you must be worth $20 million or more!

I started in 2016 with $30,000 to invest. The median price of a home was $245,000 at the time. I bought a hoarder house off-market for $55,000 and grew from there. I now have 33 rentals, 135 storage units, my net cash flow is over $150,000, and my net worth is approaching $3 million. Russ is in a heavily populated area, whereas I accomplished this in a small market with 10,000 people.

My advice is for beginners to invest for cashflow in markets with affordable houses and fair Landlord-Tenant laws. Do a search for "worst markets for real estate investing" and you'll get a list that includes most of the east and west coast. Do a search for "best markets for real estate investing" and you'll find most of the east and west coast are never on the list. There's a reason for that and it's not just my personal opinion.  My advice generally matches what you'll hear on the BiggerPockets podcasts and from most of the experienced investors in the forums. As you gain experience and earnings, you will be in a better position to invest in riskier markets or play the appreciation game.

Russell has a different experience and different advice. It's your job to filter through the noise to decide what is right for you and your situation.