Old houses, high prices, high taxes, rising rates, ...what to do?

[Michael Weis]

So I live in an area in Central NJ where the average age of the homes is 100+, the prices for even the distressed properties are already pretty high, tax rates are ridiculously high and the interest rates are climbing rapidly. Plus, the town is not at all hospitable to creating new units out of attics or basements...maybe garage conversions on a case by case basis. So there's virtually no way to hack these buildings to increase the income. Yet there are a lot of multifamily properties in this town, supposedly "perfect for investors" and people are snapping them up like crazy even though I don't see how or why the sale prices would ever work. 

I already have a duplex and a fourplex, both of which I might not have purchased had I known then what I know now about real estate. But I've got 'em now and I live part-time in one of them, so at least that one is kind of worth it. There's a major university a few blocks away, a teaching hospital and pharmaceutical companies all over the place, plus Amazon down the road now, too. Lot's of great economic fundamentals, but the reality is that the annual maintenance on these houses is already killing me even though the properties are clearly appreciating. Do I just punt on this neighborhood and find greener investing pastures? My wife also is the one who is bringing most of the money to the table, through inheritance, and she wants to invest but doesn't feel comfortable doing long-distance REI.

Is there any approach that anyone can recommend to justify continued investment in an area like this, where an actually good deal may only come along or be "made" every once in a blue moon, and if not, how do I convince my partner to expand her horizons?

[Caleb Brown]

I would either try to network more and look off market or venture into OOS areas. I think you need to look at more leads before switching gears as starting local in an expensive market is great because you can ride the appreciation wave. Network and find the agents or people doing deals. Also look into partnering or other avenues. FB groups and meetups will be a great start.