Cash Rich Knowledge Poor

[Barry Cooper]

I bought along with 4 other investors in 2005 a 3-family new construction in Bed-Stuy Brooklyn NY. It's now come to the point to sell and each of us will make 135k before taxes selling the place. Myself and another investor have decided to stay with real- estate investing and go in together on another multi-family in the nyc metro area. My question: is it smart to pay cash for a building with the intentions of fixing it up in this area? Or would I do better going down south where my money go a little further and tax would not be so high? For most places tax has been around 8k per year.