New Investor Brooklyn NY

[Tyler H.]

My name is Tyler and I am a new investor and new to BP.  I currently work full time in Brooklyn for an insurance wholesaler and am looking to start investing in some properties.  I write property and casualty insurance in the area and a lot of the policies are for real estate investors and contractors.  I have learned a lot about neighborhoods and construction from my work and I think that will help a lot in purchasing deals.  

I have saved up some money to get started and I am on the fence on the best way to get going.  I originally thought I'd try and find a duplex in BK to live in(which would be pricey), it would require a decent amount down to get financed. I figured I could always borrow against the equity of that place and get A LOT for rent from tenants and roommate, plus the tax advantages after 2 years on appreciation. The other option I am juggling would be to look into other areas that are cheaper for a buy and hold cash flow positions.  Any input for a newbie in the industry would be greatly appreciated!

[Amit M.]

NYC = Bay Area when it comes to making money with RE. Appreciation matters!  It's not mere speculation. Read:

http://www.biggerpockets.com/forums/99/topics/1353...

I'd definitely get into the BK market. I know williamsburg is now yuppie expensive, so I'd suss out the next up and coming hoods in BK.  Great way to get into RE. Go for a duplex, or partner with someone like the poster above and buy more units, you guys live/manage the bldg. You'll learn ALOT first hand, and you'll be able to take your appreciation a few years later and leverage it to buy another property if you wish. 

I personally suggest you stay away from this random turn key out of state stuff. You live in BK FFS!  That's the place to get into the gentrifying areas!

Remember: cash flow pays the bills, but appreciation will make you rich.