Struggling in NJ should i look out of state

[Gil Lieblich]

I am struggling to find good deals in New Jersey... I own a couple of properties here and was lucky to get a good deal but as the market is picking up I am really finding it hard to get a good return. A lot of the issue is taxes are so high in NJ that with insurance and other bills it kills many deals for me. So is it worth driving a couple hours and look in neighboring states?

[Michael G.]

I live in Long Island NY but invest in Allentown PA for cashflow properties.

2 hour drive for me but possibly much shorter for you.

I bought in 05 for under 50 K. Those properties even after light rehab are still cash flowing today. 800 and 900 dollar rents on those purchases. Debt service is 400 - 500 bucks. PM is 10% of the rents.