New investor looking for feedback on markets in the NY/NJ/CT market

[Danny Zhu]

Hello fellow investors! My name is Danny and I've been in the real estate industry for the past 6 years. I'm looking to break into starting the real estate empire within the next 3-4 months. I have interest in finding and closing in Q1 or Q2 2024, before the fed lowers interest rates which would heat up the sales market again and push sale prices even higher. 

I can currently afford either a SFH or a two family home priced up to $450K (which would need to be very close to a turnkey property) with 20-25% down payment and is within a 2 hour drive so I am able to self manage. The tenants would just be either MTR or LTR.

My strategy is to acquire a home with decent affordability (reasonable monthly payments ranging <$2500/m) since that would likely see higher appreciation opportunity. I would purchase at today's sale price and then cash out refinance 1-2 years later when appreciation increases the home's value and also when interest rates are lower. The hope to this is that I will be able to use the appreciation equity to fund a different property.

The current markets that I believe fit the strategy that I have found are:

1. Jamaica, NY ($475K SFH)

2. Bronx, NY ($450K SFH)

3. Hartford, CT ($300K 2FH)

4. Paterson, NJ ($350K 2FH)

5. Poughkeepsie, NY ($300K 2FH)

6. Newburgh, NY ($250K 2FH)

These are the main markets that I have been watching with a few others in the surrounding area. One issue that I have is that it does feel overwhelming to stay on top of this many markets. Any tips on this would also be greatly appreciated!

My questions:

1. Do you think my strategy is realistic? Is this the right direction a new investor should take in today's financial world?

2. For my New York tri-state investors - what other markets do you see high appreciation happening? 

[Ryan Cleary]

Happy to see you starting out! I just want to give you a heads up, at those price points and locations, you will probably have to be more hands-on with your properties.

That being said... it will be a great place to start out if you are willing to deal with whatever pops up.  Any thought about Nassau County?  Property taxes will be higher but you may less headaches. I have found that it is in the path of progress as queens continues to spill over.