NYC Newbie trying to decide on a market

NYC Newbie trying to decide on a market

Investor · Long Island, NY · Member since 2020 · 8 posts · 1 vote

Brand new investor starting out. I live in Brooklyn, NY which is way out of my price range. At first I was dead set on Philadelphia, as I know a couple of people flipping houses down there, but the distance and lack of local knowledge made me hesitant. Additionally, I started to look at things using a little more of a data driven approach (i.e. population trends, economic growth, etc.) which opened me up to much more affordable, yet further away markets. The adventurous side of me wants to venture out, but the conservative and sensible side of myself wants something a bit more digestible and closer to home. I've begun to look at markets like Ulster and Dutchess County, but I fear all the indecision is making my head spine. A little wisdom and guidance would be greatly appreciated.

Additionally, my main target is small multifamily properties around 250k. I have a construction background so minor repairs are not intimidating though I'd prefer to keep renovations to a minimum. Seeking a strong cash flowing market over an appreciation driven one, but prefer an area I can continue to build a portfolio in to incorporate appreciation down the line.

Thanks in advance for all the insight.

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Rental Property Investor · Philadelphia, PA · Member since 2015 · 478 posts · 362 votes
5y

@Michael Kunis Flip ou buy & hold cause that will drive the where? LV and Philly and surrounding suburbs offer plenty of good opportunities but you have got to learn the markets. Duplex, triplex etc are more difficult to find as seasoned investor s will grab the good ones before you even know they exist. You have to start somewhere and get yourself out there so either work with someone who can guide you or find the right investments for you or jump in and make the investment your school rather than waiting months or years until you are sure you made the perfect decision.

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  • FL · Member since 2020 · 27 posts · 11 votes
    5y

    Hi @Michael Kunis - I understand that NYC is very expensive. Philly is a bit far. My company works in the Lehigh Valley PA area. It is a good market area. Some of our clients are in NYC, but they chose to invest out of state. 

  • Investor · Member since 2020 · 201 posts · 92 votes
    5y

    Hi Michael, my recommendation for your first few homes would be as close to your home as possible and what you feel comfortable driving, like an hour or so within your area. This helps when you want to check on your properties, especially on rehabs.  There are a lot of options and areas to look for investments.  Key in on areas that you are comfortable with for your price range and time management, especially if you're going to manage the properties yourself. Then, once you get your feet wet, then branch out to areas further away.

  • Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes
    5y

    @Michael Kunis I am also from NYC and looking in Lehigh Valley...a lot of NY and NJ investors are so it's creating a lot of competition in the area. Still good deals to be had and you can find a value add opportunity to push appreciation but it's not to my knowledge a traditionally high appreciating market. That may be changing though as competition increases...

  • Flipper/Rehabber · Jackson Heights, NY · Member since 2019 · 28 posts · 16 votes
    5y

    @Michael Kunis

    Hi Michael,

    I am also from NYC. Yeah our prices suck here. I just acquired a great deal using David Ribardo he’s an investor friendly agent that knows the Lehigh valley area well. He’s on BP and can help you out. That goes for anyone else here hope it helps.

  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    Hi @Courtney Francis what does your company do regarding real estate?  Are you an agent?  I come across clients who are interest in Lehigh Valley from time to time.

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  • FL · Member since 2020 · 27 posts · 11 votes
    5y
    Originally posted by @Shawn Mcenteer:

    Hi @Courtney Francis what does your company do regarding real estate?  Are you an agent?  I come across clients who are interest in Lehigh Valley from time to time.

    It is a consultation business. We have to hear what the clients want or need and see if it is something we can do especially helping out of state investors. Every situation is a bit different.

    No, I am not an agent. 

  • Rental Property Investor · Philadelphia, PA · Member since 2015 · 478 posts · 362 votes
    5y

    @Michael Kunis Flip ou buy & hold cause that will drive the where? LV and Philly and surrounding suburbs offer plenty of good opportunities but you have got to learn the markets. Duplex, triplex etc are more difficult to find as seasoned investor s will grab the good ones before you even know they exist. You have to start somewhere and get yourself out there so either work with someone who can guide you or find the right investments for you or jump in and make the investment your school rather than waiting months or years until you are sure you made the perfect decision.

  • Investor · Long Island, NY · Member since 2020 · 8 posts · 1 vote
    5y

    @Sheryl Sitman

    Good point. I’m definitely looking for buy and holds.

  • Investor · Long Island, NY · Member since 2020 · 8 posts · 1 vote
    5y

    @Nicole (Dunlap) Pendergrass

    What is the main attraction to LV. I understood upstate New York as most people who still have jobs in Manhattan have an accessible commute without the ridiculous price for housing. I guess I just have trouble understanding the economy of other areas.

  • Rental Property Investor · Philadelphia, PA · Member since 2015 · 478 posts · 362 votes
    5y

    @Michael Kunis. Here is an article we wrote last year about Lehigh Valley RE opportunities. https://aroundtheblockassets.com/lehigh-valley-real-estate/?lang=en

  • Investor · Long Island, NY · Member since 2020 · 8 posts · 1 vote
    5y
    Originally posted by @Sheryl Sitman:

    @Michael Kunis. Here is an article we wrote last year about Lehigh Valley RE opportunities. https://aroundtheblockassets.com/lehigh-valley-real-estate/?lang=en

    Great post Sheryl, thank you for that. A lot of great information in here. I appreciate all the responses.

  • Real Estate Agent · New York City · Member since 2020 · 818 posts · 639 votes
    5y

    Hi Michael, I must ask - why not stay in your own backyard? You know the area best and you are also able to manage more efficiently if it is close to home. 

    Long term, I think NYC will come back as it always has time and time again. I am also a great believer in investing when there is distress and deploying capital when you can. Cap rates in Brooklyn are quite reasonable now (~6% can be had) and tremendous upside exists once the city returns to "the before times". 

    If you are looking for yield in the short run, there are better opportunities to be had. If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made in New York.

    Let me know if you would like to chat further. 

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