New to Real Estate · Bronxville NY · Member since 2016 · 12 posts · 9 votes
Hi, I’m new to investing and am trying to narrow down where to invest. Albany NY is a growing city with mfh that fit into my price point but is 2h from my house. New Haven or Hartford Conn don’t seem to be growing like Albany (maybe I’m wrong?) and have more expensive housing but are only 1h from my house. Once I start investing I want to stay in one market to minimize multiple management companies, handymen, etc. Which is more important: investing close to home or investing in a growing market?
it's a good question, I don't know if it has to be an either / or, though. i'm majorly in the close to home camp. the market is really tough right now and so being hands-on when you're getting started is absolutely essential. you need to walk properties, meet other humans in person, build your network, drive the streets, etc. if you can't do that in albany don't invest in albany.
there are so many threads on BP by folks who bought too far away - 2 hours, 2 thousand miles - and got crushed by capex, and couldn't be there in person to try to resolve / straighten out. i don't think doing this makes any sense. we're here to make money, not to buy properties just to buy properties.
so, with that said, i do think there is opportunity in new haven and also bridgeport but (as you probably know) those cities are street by street, and you don't want to buy in the wrong neighborhood / on the wrong street.
hope this helps. i own a property in stamford but primarily invest in PA.
it's a good question, I don't know if it has to be an either / or, though. i'm majorly in the close to home camp. the market is really tough right now and so being hands-on when you're getting started is absolutely essential. you need to walk properties, meet other humans in person, build your network, drive the streets, etc. if you can't do that in albany don't invest in albany.
there are so many threads on BP by folks who bought too far away - 2 hours, 2 thousand miles - and got crushed by capex, and couldn't be there in person to try to resolve / straighten out. i don't think doing this makes any sense. we're here to make money, not to buy properties just to buy properties.
so, with that said, i do think there is opportunity in new haven and also bridgeport but (as you probably know) those cities are street by street, and you don't want to buy in the wrong neighborhood / on the wrong street.
hope this helps. i own a property in stamford but primarily invest in PA.
Rental Property Investor · Emmaus, PA · Member since 2021 · 152 posts · 85 votes
1y
This is a good question and the answer really lies with the investor.
I have a decently wide search radius when I look for properties because I don't necessarily care about proximity to me, I care more about the individual deal.
Each option you choose comes with its own challenges.
If you choose to invest in only one area, then your growth may be slowed as you don't have as many deals to choose from. You're also more prone to portfolio fluctuations if that area is hit with economic hard times.
If you invest in many areas, then you have to do extra work with each deal. You have to learn the desirable and undesirable parts of the city you're looking at, you have to create a whole new list of contacts for maintenance and management in that area, and much more.
So, as I said in the beginning, it really comes down to your personal goals and preferences.
@Debra Orringer I prefer to invest close to home. I am an expert in my market of about a 50 mile radius. Knowing what deals to buy and which ones are better has been a real benefit.
That being said I’m also in a smaller market and there hasn’t been any multi family properties come in the market in over 3 months, thus limiting my opportunities.
I don’t think you would have that problem in CT.
I have 2 properties that are 30 minutes away from where I live and it’s definitely much more of a hassle to go deal with them. I’ve been renovating 2 of the units going on 3 months and I’m helping my contractor with some of the labor as I’m able. The drive back and forth 3-4 times per week is putting a lot of extra miles on my car and is somewhat wearing on me.
I’d be concerned with having property 2 hours away and feeling the need to drive there every 1-2 weeks to check it out. But that’s just me.