Buying my first time rental property

[Jack Calnan]

Hey all! I'm sure there's been tons of posts and I like to think have gone through alot of them. I wanted to understand the current state of the market in 2023 considering high interest rates and low supply, I'm interested in a single family home with atleast 2 beds (or a multi family home in my budget). A little context around this, My friend and I are planning to buy our very first property somewhere close to us (together). We live in New York so our ideal (probably cheaper) option would be somewhere in New Jersey or the tristate area that would bring in some rent and help us with the mortgage.

We're in the early stages of planning but are adamant to close something within 2023. The goal for this property would be long/short term renting and holding on to the equity for the foreseeable future. We understand that most properties don't profit for years which is why we're not in a hurry to see money in our pockets. We'd like to stay under 250K-300K and preferably get a good rate for a 30yr conventional loan. We have a great credit score with both of us making a six figure salary and can arrange a 25% down payment, so we would love some referrals on money lenders around the ny/nj/ct area.

We thought of creating an LLC but changed our mind due to the complexity around it, we're still open to the idea but want to have a more concrete plan as we invest more. We're confident in the pre-approval process and have some lenders in mind, we're contemplating getting an investment advisor that would guide us through the process but i'm not sure how to find one in our area (NY advisors are very very expensive). So we would also love some referrals on investment advisors.

Lastly, we would love to hear some investment stories from single/multi family home owners and rental investors in the New York/New Jersey/Connecticut area, are there some major laws that we should know before going forward with this?

some questions on a different tangent,

1. Should we look into foreclosed properties through BiggerPockets?

2. I don't see us going for fixer upper properties (Atleast for the first investment), should we consider them though?

3. We got scared of long distance investments, i don't think we have the capability of coordinating with our full time jobs but that's my excuse.

4. What about turn key properties? They seem too good to be true.

Appreciate your response, Thank you!
I'm new to BiggerPockets, love the podcast!

[Lindsay Op de Coul]

Hi Jack!  I work for a real estate investment services company from NJ and here are some rough, quick notes...

First, I would reconsider doing an LLC. This adds protection in case anything goes south. A little complication upfront can save you in the long-run.

Second, start building your criteria (sounds like you have started this already) - your all-in budget is, what kind of neighborhoods you would want to invest in or not invest in, how much cash flow/return is worthwhile, etc. etc.

Third, turnkey properties can be dangerous, so do your due diligence. There could be a very good reason the seller is trying to get out.

Our Broker Owner is always happy to chat with newbie investors to provide some help with no strings attached.  We also have a lender we recommend for NJ if you want.