Just moved to NYC From Florida - What State Do I Invest In?

[Eric Bauer]

Hello all,

I am a long-time forum lurker who recently has had the ability to more realistically consider starting my real estate investing journey. I have read multiple real estate investing books (currently have Multifamily Millionaire Vol. 1 on pre-order!), watched a plethora of BiggerPockets podcasts/videos, and at this point pretty much spend all of my free time mock-analyzing properties and continuing to learn as much as I can from the forums, videos, and books.

About me: I was born in the tri-state area, but mostly grew up and went to school in the Indian River/Brevard/Orange county areas in Florida. I was fortunate enough recently to land a job opportunity in NYC that was worth taking, as my income greatly benefited even after the increase in rent and taxes and is ultimately where I have always dreamt of living.

Goals: I've determined that I would like to start investing with a two-family (duplex) property. Preferably a side-by-side, but open to up-and-downs as well. Being my first property, I would prefer something closer to turnkey than not, maybe needing to spend up to $5k-10k in rehab so that I don't feel in over my head on my first property. (A mini BRRRR, if you will)

The Numbers: I currently have around $30k saved, and am able to save approximately $1,500/mo. There are freelance jobs and consulting that I do on the side of my W2 job that sometimes allow me a few hundred extra dollars per month.

Hurdles: Where I run into some decision making hurdles are that I would preferably like to be near my first rental property, however the Florida market is what I know much better and seems to be more favorable to landlords than New York. (For example, I had rented in 8 different areas of Orlando for 8 years in a row, so I tend to have a better grasp on the numbers there lol) On the other hand, I also know that Florida's multi family prices, and market in general, compared to cities like Albany, Rochester, or Buffalo are substantially higher. I also know that the lower prices to be found in NY have a lot to do with there being older buildings, higher property taxes, tougher neighborhoods, less appreciation, etc. which I know I will need to incorporate into deal analysis accordingly and understand the risk of.

Summary: I feel that with having to put 20% down (FHA loan house-hacking is pretty much out of the question in NYC due to the astronomical prices here), buying a property in New York may be more attainable with my current savings and would allow me easier access to visit the property, however I don't think I could afford the quality of property I would like (close-ish to turnkey) in Florida. How would others approach my situation? How should I frame my thinking in making these decisions? Should I consider places even beyond NY or FL? Should I wait and continue to save more, wait for a "correction", or something else?

I look forward to connecting with users both in New York and Florida, and greatly appreciate those who take the time to read and respond to this lengthy post. Any feedback is greatly valued as I begin this journey :)

Regards,
Eric