Investing out of state

[Ming Wu]

Hi guys,

I reside in NYC and have been looking into my first investment property around the area. Multifamily is my focus and I've been trying for cheap single families (under 250k) as well. Other than full gut jobs and potential short sales, there hasn't been even one that fits my criteria of 5-6% cap rate under 400k in a decent neighborhood. Most are around 500k+ and that's just single family.

Now comes the part where I have to look elsewhere. States around NY doesn't seem to be very desirable or just as expensive/high in taxes like NJ, CT, PA. If anyone has insight into surrounding states, I would love to hear their opinion.

I've been also looking into the west coast. Seattle seems very pricey but homes are way more affordable than NYC but I've been hearing Seattle is at its peak right now so not sure if I should wait or invest at all.

If anyone can give any advice on Seattle or similar populated developing cities that are not as expensive as NYC, that would be great. Multifamily (2-4) under 400k with a 5% or more cap rate. Thanks.