Seeking Advice on expanding my Real Estate Portfolio

[Adam Pervez]

Hi BP Community, 

I am writing this post because I feel like I have been stuck in expanding my current portfolio. I am 27 years old and earn around 150-160k in gross income from my W2 which is remote. I have a duplex in Lehigh Valley Pennsylvania which currently cash flows 800-900 a month. I work a side job for a friend and make 3-4k gross income. I am based in NJ but I feel nothing will cash flow or be too sustainable unless I put in a higher downpayment.

I am looking to do only long term rentals and keep it with Multi-family units in the beginning and then advance to appreciation type properties in developing areas.

I was thinking if I should save up more money for a larger down payment or possibly look at a different area to invest since I am NJ and the high property taxes make this hard unless more capital is put down. I am fine for long term growth and don't mind working for the next 20-30 years to build a sustainable portfolio with no mortages on them as the end game plan.

What would you do? Happy to clarify any more information on this since I know this is very open ended...

[Rene Hosman]

Hi Adam! Thanks for all the info and for coming to the community with your question.

One consideration is the tenant laws in each state since you have the opportunity and interest to invest in multiple places. Is this something you've spoken with anyone like an investor friendly agent or PM in NJ about? 

Is cash flow your top priority? It seems you have a great income already and a cash flowing property in Pennsylvania, so are you comfortable with something that breaks even and is an appreciation play or are you looking at purely cash flow?

[Ryan Cheek]

Quote from @Adam Pervez:

Hi BP Community, 

I am writing this post because I feel like I have been stuck in expanding my current portfolio. I am 27 years old and earn around 150-160k in gross income from my W2 which is remote. I have a duplex in Lehigh Valley Pennsylvania which currently cash flows 800-900 a month. I work a side job for a friend and make 3-4k gross income. I am based in NJ but I feel nothing will cash flow or be too sustainable unless I put in a higher downpayment.

I am looking to do only long term rentals and keep it with Multi-family units in the beginning and then advance to appreciation type properties in developing areas.

I was thinking if I should save up more money for a larger down payment or possibly look at a different area to invest since I am NJ and the high property taxes make this hard unless more capital is put down. I am fine for long term growth and don't mind working for the next 20-30 years to build a sustainable portfolio with no mortages on them as the end game plan.

What would you do? Happy to clarify any more information on this since I know this is very open ended...

**"Hey there! It sounds like you’ve got a solid foundation with your duplex in Lehigh Valley, and it’s great to see you’re thinking long-term about your portfolio. High property taxes in NJ can definitely make cash flow a challenge, especially if you’re trying to avoid over-leveraging.

Given your goals, one strategy you might consider is diversifying into markets with lower entry costs and strong rental demand. I’ve been working with investors who are looking for just that, and one area that’s really stood out is Indianapolis. The city has a growing population, reasonable property taxes, and offers solid cash flow opportunities—especially with new construction duplexes.

These are off-market deals that are designed to attract long-term tenants, and they offer a balance of immediate cash flow and long-term appreciation potential. With your remote work flexibility and strong income, investing in a market like Indianapolis could help you expand your portfolio more sustainably without needing to save up a massive down payment for each new property.

If that sounds interesting, feel free to shoot me a message—I’d be happy to share more about what I’m working on in Indy and see if it might be a good fit for your goals."**

[Min Zhang]

Hey Adam, if you're open to other markets, check out Ohio. I’ve been investing here for two years and recommend Cleveland for immediate cash flow and Columbus for long-term appreciation. Cleveland offers affordable properties with good cash flow, while Columbus is strong on appreciation due to its growing economy. I am open to share my experience here in Ohio as an investor. If there's anything I can do, let me know!

[Jonathan Greene]

You have some terrible advice here, literally awful. LIving in New Jersey, your proximity to Lehigh Valley and your first investment is perfect. You get lower taxes in PA, there is appreciation in that market, and you can drive there if you need to. Do not go and invest out of state because people come into the forum and try to convince you to work with them on these goals (so ridiculous), you aren't ready for that and you have a good foundation somewhat locally.

Your best bet, if you can't move, is to keep investing outside of New Jersey and stay close to your current property. If you can cluster another one in the area, you will reduce your management costs and keep your travel the same. Best bet would be if you could move to Lehigh Valley and house hack there.

[Simon W.]

Quote from @Adam Pervez:

Hi BP Community, 

I am writing this post because I feel like I have been stuck in expanding my current portfolio. I am 27 years old and earn around 150-160k in gross income from my W2 which is remote. I have a duplex in Lehigh Valley Pennsylvania which currently cash flows 800-900 a month. I work a side job for a friend and make 3-4k gross income. I am based in NJ but I feel nothing will cash flow or be too sustainable unless I put in a higher downpayment.

I am looking to do only long term rentals and keep it with Multi-family units in the beginning and then advance to appreciation type properties in developing areas.

I was thinking if I should save up more money for a larger down payment or possibly look at a different area to invest since I am NJ and the high property taxes make this hard unless more capital is put down. I am fine for long term growth and don't mind working for the next 20-30 years to build a sustainable portfolio with no mortages on them as the end game plan.

What would you do? Happy to clarify any more information on this since I know this is very open ended...

 Where in Lehigh Valley? I am in the area there are good amount of properties here that definitely can be added value. 

I wouldn't suggest investing further than 2 states away from where you live.

[Samuel Diouf]

Hey Adam, 

With goal of creating wealth and being okay with working along the journey than appreciation focused markets will be your best bet.

Appreciation returns are often more gradual but way larger in the long term. 

Columbus, Ohio is a great market to consider if you are leaning towards that appreciation. I moved here from Florida after seeing the expansive growth in the Columbus market.

There are multiple billion dollar companies dumping money into the city, such as Intel, Google, and Amazon. And a lot of start-up companies are migrating to this city as well, because of the efficient costs of living, the OSU campus that has thousands of students graduating and looking for jobs locally, and the availability of land.

Everything that’s going on here in Columbus is attracting investors and other businesses from all over. A recent study showed that 80 people are moving to this city every single week, which will continue to increase housing demand.

[Jimmy Lieu]

Quote from @Adam Pervez:

Hi BP Community, 

I am writing this post because I feel like I have been stuck in expanding my current portfolio. I am 27 years old and earn around 150-160k in gross income from my W2 which is remote. I have a duplex in Lehigh Valley Pennsylvania which currently cash flows 800-900 a month. I work a side job for a friend and make 3-4k gross income. I am based in NJ but I feel nothing will cash flow or be too sustainable unless I put in a higher downpayment.

I am looking to do only long term rentals and keep it with Multi-family units in the beginning and then advance to appreciation type properties in developing areas.

I was thinking if I should save up more money for a larger down payment or possibly look at a different area to invest since I am NJ and the high property taxes make this hard unless more capital is put down. I am fine for long term growth and don't mind working for the next 20-30 years to build a sustainable portfolio with no mortages on them as the end game plan.

What would you do? Happy to clarify any more information on this since I know this is very open ended...

Hi Adam! When you're ready to look into other markets, I personally recommend checking Columbus OH. A lot of my out of state clients love it here because of the great macroeconomics. We are seeing population growth, job growth, and major companies moving and building out here like Meta, Amazon, Google, Intel, etc. You can still find lots of deals that cash flow, hit the 1% rule, and have lots of potential for appreciation. If you have any other questions, happy to connect!

[Alecia Loveless]

@Adam Pervez I wouldn’t recommend just investing further away because people are promising rainbows and unicorns.

If you have a market that’s working in PA I would recommend expanding there where you’re familiar with things.

I’ve stayed a little more local than you, a 50 mile radius or so but it allows me to understand the nuances of my market down to which streets are better than others.

While you may not be as familiar with the PA market, I’m sure you know better neighborhoods to invest in.

I always say play to your strengths and invest in your strengths. You will have to spend considerable time and energy getting familiar with a new market whereas if you stick with the original one you appear to have enough capital to get started right away on a new building.

[Adam Pervez]

Quote from @Simon W.:

Quote from @Adam Pervez:

Hi BP Community, 

I am writing this post because I feel like I have been stuck in expanding my current portfolio. I am 27 years old and earn around 150-160k in gross income from my W2 which is remote. I have a duplex in Lehigh Valley Pennsylvania which currently cash flows 800-900 a month. I work a side job for a friend and make 3-4k gross income. I am based in NJ but I feel nothing will cash flow or be too sustainable unless I put in a higher downpayment.

I am looking to do only long term rentals and keep it with Multi-family units in the beginning and then advance to appreciation type properties in developing areas.

I was thinking if I should save up more money for a larger down payment or possibly look at a different area to invest since I am NJ and the high property taxes make this hard unless more capital is put down. I am fine for long term growth and don't mind working for the next 20-30 years to build a sustainable portfolio with no mortages on them as the end game plan.

What would you do? Happy to clarify any more information on this since I know this is very open ended...

 Where in Lehigh Valley? I am in the area there are good amount of properties here that definitely can be added value. 

I wouldn't suggest investing further than 2 states away from where you live.

 In Easton but looking at Bethlehem now as well. Where are you at?

[Simon W.]

@Adam Pervez I am in the Easton area. I am always around Allentown as well. I moved from NYC 5 years ago.

[Joseph Chacko vellukunnel]

fellow NJ investor here, I've been looking on expanding my portfolio.. researched columbus for a couple of months, but couldn't find "great" deals, unless it was in class C or lower neighborhoods.  This didn't make sense to me since I don't have a good property management team in there already.

I live in the jersey city area, it's hard to cash flow here even at 25% down, trying to network and see what other good opportunities exist. Might even look at private lending and get some truly 'passive' income.

[Simon W.]

Since you are close to PA, you should look into it. NYC and NJ deals do not make sense unless you have plenty of income to spare and just keep working until you build enough equity. Not much cash flow to expand portfolio.

[Jasmine Williams]

Hi @Adam Pervez! You honestly have great cash flow with your current investment. The answer to your question, in my personal opinion, is to do exactly what you're looking to do in the future, right now...invest in small multi-family (up to 4 units) that you can purchase below market value in developing areas in order to capitalize on the appreciating value...but to do it with properties that also have lower entry costs, strong rental demand, positive cash flow, and with lower property taxes. Not only will you continue to build your portfolio, but it can offer the tax benefits to offset your high income. 

Out of state investing can be very beneficial for someone in your shoes. But, I'd recommend going the B2R route where management is already in place for a turn-key process without the headache of dealing with tenants and property issues for, at least, the next 10 years. We're in several Florida markets for this exact reason.

I am working with a 20-year, veteran, cash investor right now that is navigating this exact problem. His profitability with the current properties has capped & he wants to get out before things hit the downturn. This is the same conversation I had with him. Happy to answer any questions.

Feel free to connect with! (Same for you @Joseph Chacko vellukunnel.) Good luck!

[Emanuele Mayer]

Hello Adan, you can cashout money from your investment property and use as downpayment for you next deal.

[Adam Pervez]

Quote from @Simon W.:

@Adam Pervez I am in the Easton area. I am always around Allentown as well. I moved from NYC 5 years ago.

 Shot you a connection request!

[Adam Pervez]

Quote from @Joseph Chacko vellukunnel:

fellow NJ investor here, I've been looking on expanding my portfolio.. researched columbus for a couple of months, but couldn't find "great" deals, unless it was in class C or lower neighborhoods.  This didn't make sense to me since I don't have a good property management team in there already.

I live in the jersey city area, it's hard to cash flow here even at 25% down, trying to network and see what other good opportunities exist. Might even look at private lending and get some truly 'passive' income.

 That's what I am coming across as well. The areas are a bit sketch but the profits are there. I guess it just all depends on having a system in place to alleviate issues that will come down the road. Let's connect!

[Sheryl Sitman]

@Adam Pervez  your journey so far is really impressive! I invest in my local markets  (Philly metro area, Lehigh Val - Bethlehem and Easton) as well as other states. Our strategy has evolved as markets and conditions have changed as well as our own place in life and we constantly check ourselves and make adjustments. We have the experience and time to dedicate to that. If I were 30 years younger (your age) I would look to experienced intelligent investors to help guide me. I am not offering myself but I do know someone who could help you figure out the next moves and the right strategy. He is not a guru - just a good solid very smart RE investor who loves to work with people who can benefit from his guidance. Happy to connect you if you want.

[Alan Asriants]

Why not keep going for the Lehigh Valley properties if that is going well for you? Keep buying in the area you know well, especially if there is opportunity.

Doubling down is usually a good move!

[Jake Ferman]

Quote from @Adam Pervez:

Hi BP Community, 

I am writing this post because I feel like I have been stuck in expanding my current portfolio. I am 27 years old and earn around 150-160k in gross income from my W2 which is remote. I have a duplex in Lehigh Valley Pennsylvania which currently cash flows 800-900 a month. I work a side job for a friend and make 3-4k gross income. I am based in NJ but I feel nothing will cash flow or be too sustainable unless I put in a higher downpayment.

I am looking to do only long term rentals and keep it with Multi-family units in the beginning and then advance to appreciation type properties in developing areas.

I was thinking if I should save up more money for a larger down payment or possibly look at a different area to invest since I am NJ and the high property taxes make this hard unless more capital is put down. I am fine for long term growth and don't mind working for the next 20-30 years to build a sustainable portfolio with no mortages on them as the end game plan.

What would you do? Happy to clarify any more information on this since I know this is very open ended...

 @Adam Pervez Just shot you a connection request on LinkedIn, haha. 

Super new to BP and REI in general and looking to connect with folks who are a few steps ahead/in the tri-state area.

sales guy to sales guy, if you see anyone in my network I can connect you with (or if there's any way at all that I can be of value), please let me know!

[Jordan D'Silva]

I wouldn't let the market you're in be the constraint. If you have the bandwidth to check out other markets and center on a few and then look for partners, I think that would make a ton of sense. I would also evaluate your investment goals and ensure the asset type or real estate in general makes the most sense for what you want to do. Cashflow is difficult in a lot of asset types and markets, but going just for cashflow may not make sense either due to comparable vehicles where you can earn similar returns for much less work. Happy to talk further.