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Updated about 6 years ago,
NJ or Phoenix or Palm Springs/LA condo for 3rd house?
Broad question, but eager to hear people's opinions who know these markets:
IDEA:
i have a condo deal in Jersey City area I bought in 2016 for below 150k, small 2bed 1bath, where each room rents around $900/m, cashflowing net monthly $500-700. Would like to replicate this, or find something similar in a decent area, this time open to a minor rehab too.
I am looking at the BRRRR strategy primarily and hear that as a condo investment putting down 20% is enough via conventional lets say 30yr fixed financing (plus i cant afford more than a 150-200k condo atm).
- have about 30-40k to put down so id be good for up to 200 maybe 250k properties in Q1-Q2 2019.
- a 2bed 1bath would be most suitable so if need be i can come by and stay in 1 room.
- would like to cashflow around $500/m net, ideally more
OPTIONS im considering, would be happy to hear what people think:
- NJ Hudson county - jersey city etc areas which i already know, albeit prices are creeping up, not much realistically under 200k in terms of even a 1bed condo at this point. Not sure i want to go out further like Bloomfield, Newark etc.
- Palm Springs - see that many things are super cheap - vacation rentals, Coachella etc etc. but also hear when markets go down, this area tanks bad. Reason i like it is its somewhat close to LA which I like. Something under 200k might be possible here.
- Phoenix/Scottsdale - hear quite affordable too, lot of tech firms moving to scottsdale Old Town area, might be realistic to get something around 150k.
- South Carolina / North Carolina - Columbia, Raleigh areas - i hear good college towns, super cheap real estate compared to NY area
In particular, would love to know any good tax reasons or any local benefits, local developments in these markets that would make it worthwhile to seriously consider them. NJ and Journal Sq Jersey City stuff I know.