Start locally in an expensive area or long-distance in an affordable area?

[Kevin Forsell]

I'm saving now for an investment property, but I live in Jersey City, NJ. Duplexes in the area are minimum 500k, and need a lot of work. Should my first property be a local investment or should I look in a more affordable area? 

Context: I'm 33 and make good money at my FT job (Netting around 9,000/mo), and I'm not willing to move away from Jersey City. I currently have about 10k aside for my real estate investment journey. I have a good agent in the area (who also invests) and he suggests I save 50k in order to purchase a property with HFA, house hack, and have some reno budget. I really enjoy my FT job, so I don't mind spending 2+ years to save the 50k and learn more about investing. What are your thoughts?

[David Ramirez]

Hey @Kevin Forsell

It sounds like you're on the right track with your real estate investment journey! Given your financial situation and desire to remain in Jersey City, it's understandable that you're considering properties in the area. However, if the prices for duplexes are too high, it may be worth exploring more affordable areas to find a property that fits your budget. I would do research in neighboring states like Pennsylvania and Delaware and connect with people that are investing in those areas. 

Best of luck, 

David