New Investor from Queens, NY - Interested in Rentals

[George Chang]

Hi everyone - my name is George.  I am looking at rental real estate since that is what I've had exposure to.  My family owns some property in the Mid West but I want to make my own mark.  I consider my current real estate research and readings a side hustle for now, with hopes of turning it into a full-time commitment.

I currently reside in Queens, New York (just outside of NYC) and it seems that all the property here is priced extremely high.  I have seen housing prices skyrocket during my time in middle/high school and then the housing bubble burst, so I guess I'm getting into investing at a more "stable" time.

I have been looking around the forums for a little bit and it's pretty evident that there are a LOT of smart people here.  I look forward to learning from all of you and hope to be able to give back as well.

Cheers

[Joshua Nudell]

Hi @George Chang,

I have lived in NYC my entire life (except for a short stint in college) and have followed the real estate market here for over a decade.  I would like to offer some caution about investing in buy & hold properties in NYC as a newer investor.  It's a very complex and nuanced area to invest in because for the most part part NYC is VERY tenant friendly, and that makes things difficult if you ever run into problems with a "professional" tenant.  If you run into a case where eviction is necessary, it can take months, and maybe over a year to evict someone.  When you're talking about an area where rents can go from $1,200 a month to over $2,500, that's a huge hit that can bankrupt a lot of newer landlords and take a very long time to recover from.

I think you have the unique opportunity to make your mark in an area that your family already invests in.  You could build up some experience, and a good amount of cash flow and reserves in a more forgiving market.

If you still want to invest in NYC, I would suggest attending some of the local REIAs and networking with current landlords to get a feel for how they run their rentals, and what their issues with tenants are, and how they deal with them.

Good luck in your foray into buy & hold investing!