Where to buy an investment property?

[Eric D.]

I am a newbie interested in buying a two-family home to "buy and hold" and use as a rental property. I live in North Jersey and would want to stay in that general area. But this is a very tough area to make it work, right outside of Manhattan, with high prices and high taxes. Even properties in bad shape make it onto the MLS and are asking for a lot of money - and get it.

Question:

Where should I look to buy? The MLS, short sales, foreclosures, wholesalers?

I have looked at MLS properties but there are no good deals. I know nothing about buying foreclosures or short sales and have not come across wholesale ads. I am kind of at a loss at what to do.

Any help would be appreciated!