Buying rentals outside of Long island, NY

Buying rentals outside of Long island, NY

Member since 2019 路 7 posts 路 1 vote

Hey everyone, Looking to purchase my first rental property. Unfortunately where I live (Long island NY) and anywhere under a 2 hour drive from me doesn't seem to be a good demographic for rental properties. I've been researching surrounding areas such as New jersey, Connecticut, and upstate NY which seem to have okay returns in some areas but not so much to choose from. I've also been looking in many areas of Florida which seems to have even better returns and more to choose from (and warmer weather 馃榿) but is a much much further away location (I am not opposed to the idea of property management) My questions are... 

-Would it be possible to own rentals if they were located a couple hours away without property management, while working a full time job that requires many hours but the ability to take days off fairly easy?

-As a first time investor am I better off buying somewhere that will take me only a few hours drive to get to to for an ok return, or buying further for better returns but would only be able to check on the property every 6 months or so if needed? 

- As a first time investor am i better off buying a foreclosure to rent in long island so i can be near the property? (and hopefully use that equity to eventually buy other properties)

My goal would be to one day build up to multiple rentals, I have never even bought a house and have been doing A LOT of reading/learning about rental properties but the process can be overwhelming so all tips are welcome.

Long island investors please chime in to! 

thank you!

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Tampa, FL 路 Member since 2018 路 60 posts 路 47 votes
7y

Good Afternoon! I am a property manager here in Tampa Fl. There are great returns on rentals here and great management companies ;) To answer your question, it is possible to buy rental properties and manage them yourself from a distance. What I recommend is that you find someone you can rely on to be able to go there if there was a maintanence issue or emergency. 

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  • Member since 2018 路 38 posts 路 22 votes
    7y

    @Ioannis Babatsikos It's funny because I think we are in the same boat. I've kind of settled on house hacking in Newark/Jersey City. Being that it is my first time investing I don't want to do completely out of state because I want to learn the business hands on. Even NJ is still a bit expensive because of the high property taxes but I am going to go for it anyways. I don't believe the rental market here in Long Island is as strong as Jersey (that has been my reasoning as well as wanting to move closer to NYC). From what I am learning, everybody kind of makes their local market work so go for Long Island. :) 

  • Member since 2019 路 7 posts 路 1 vote
    7y

    bump!

  • Property Manager 路 Orlando, FL 路 Member since 2016 路 479 posts 路 277 votes
    7y

    @Ioannis Babatsikos hey great to meet another Long Islander! I grew up in Smithtown and went to Hofstra but I live in Brooklyn now and work in Jericho!

    We almost exclusively invest out of state and in the southeast and midwest, so I'd be happy to help with some questions or concerns you have.

    We also host a free monthly meetup in Westbury if it's something you're interested in. We're gonna talk about how to pick a target market in the next one on Apr 17th. I put the link below, but feel free to also shoot me a PM if you want.

    http://meetu.ps/e/GyBrB/zNqhq/f

    To answer your questions

    1. Possible but very hard in my opinion. I would encourage you to factor a manager into your cost and only buy deals that make sense with it. Way less stressful and you won't have to be the one getting the call at 2 AM when the pipe burst or the toilets overflowing lol!

    2. Picking a market, you have to understand what your goals are. How much do you trust someone else to run it, are you looking for cash flow or appreciation, how expensive is it to get to the property, how long does it take to get there, is it place you won't mind going if **** hits the fan, etc.

    3. Again it's all about what you want, buying a distressed property for an investment is tough, because an end user is typically willing to pay more than you or a contractor that can do the work themselves or for cost can afford to pay more than you. But definitely not a bad option if you can make it work

    I always recommend listening to podcasts during commute, gym, walks, lunch etc because you can multi task and also I struggle to read business books but love listening to discussions on business topics.

  • Member since 2019 路 7 posts 路 1 vote
    7y

    @Chris Grenzig thank you for the tips chris, I've been listening to books and podcasts everyday on my commute just trying to gain as much info as possible. I'm definitely interested in that meetup and will try to make it there!

  • Tampa, FL 路 Member since 2018 路 60 posts 路 47 votes
    7y

    Good Afternoon! I am a property manager here in Tampa Fl. There are great returns on rentals here and great management companies ;) To answer your question, it is possible to buy rental properties and manage them yourself from a distance. What I recommend is that you find someone you can rely on to be able to go there if there was a maintanence issue or emergency. 

  • Property Manager 路 CT 路 Member since 2014 路 687 posts 路 329 votes
    7y

    @loannis 

    After years of investing, I鈥檝e realized it really comes down to the numbers at the end of the day.

    Wherever you choose as a market YOU need to know your numbers, cold.

    Whether you hire out everything or are more involved, plan from the beginning to be able to step away from the business if you need to.

    That requires careful analysis of the property BEFORE you buy, to determine if it meets your financial goals AFTER including all expenses.

    If any turn key company sends you a cashflow analysis without at least TIMMUR:

    1. Taxes,

    2. Insurance,

    3. Management,

    4. Maintenance,

    5. Utilities,

    5. Repairs

    Then run for the hills.

    In Bridgeport, Connecticut and many North East regions we also include Snow Removal and Pest control.

    Explore all markets but do your research, as to where net migration and jobs are heading.

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