Newbie from New Jersey! Hmm Which market should I target???

OP

Rental Property Investor · Jersey City, NJ · Member since 2018 · 27 posts · 10 votes

8y

@Raymond Y. are you managing the property yourself or do you have a PM?

David Ribardo

Real Estate Agent · Allentown, PA · Member since 2016 · 197 posts · 181 votes

8y

Tracey, sounds like you have a great start! How did you come up with those four markets?

I always recommend new investors start by defining their goals, then identifying the best strategy to reach them (given current macro conditions) and then what they are looking for in their ideal market. If your goal is buy and hold, key indicators I value are the ratio of average purchase price to average rent, low vacancy, and commercial growth in the area. Once you define how you will evaluate your market, a good local agent will be able to help you with the data. After that, the best market should jump right out at you!

Raymond Y.

Jersey City, NJ · Member since 2016 · 61 posts · 44 votes

8y

@Tracey F. I am using a local investor for this property. I thought about managing myself but the drive was a little too far for me.

OP

Rental Property Investor · Jersey City, NJ · Member since 2018 · 27 posts · 10 votes

8y

@David Ribardo I have been speaking with a turnkey provider (Morris Invest) and those are markets they serve. Their properties even come with management company they use although I can find my own but I prefer not to venture out just yet. I plan to buy my first property within the next month or so. And then use the BRRR model and keep going from there. I agree with you in that I want good proce-to-rent ratios, low vacancy. Good point on Commercial growth! Will keep that in mind. Thanks for your feedback! If you think of anything else please let me know.

Jay Helms

Rental Property Investor · Gulf Breeze, FL · Member since 2014 · 1k+ posts · 733 votes

8y

Detroit @Tracey F.definitely Detroit! I understand @Joshua D. is making a massive move to that city. Possibly relocating the BiggerPockets headquarters.

OP

Rental Property Investor · Jersey City, NJ · Member since 2018 · 27 posts · 10 votes

8y

@Jay Helms thanks Jay! Detroit was actually top of my list then indianapolis. Will drill down into Detroit! Just looked up @Joshua D. founder of BP! So grateful for this forum!

862-208-2287 Podcast Guest on Show #48

Darren SagerPro Member

Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes

8y

@Tracey F. don't listen to @Jay Helms. Josh is NOT moving BiggerPockets to Detroit. Headquarters is very happy in Denver. Personally I'd stick close to home, but you can make money anywhere provided the opportunity is good.

2 Reply

Jay Helms

Rental Property Investor · Gulf Breeze, FL · Member since 2014 · 1k+ posts · 733 votes

8y

@Darren Sager is correct @Tracey F. Josh loathes Detroit. I kid, I kid!

Chanise P.

Norristown, PA · Member since 2015 · 40 posts · 7 votes

8y

@Jay Helms I thought i'd missed something. I know in just about EVERY podcast somehow his dislike for Detroit comes up. You had me for a second!

2 Reply

Tom Ott

Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes

8y

Originally posted by @Tracey F.:

I live in Jersey City, NJ and work in NYC in the IT profession. My real estate experience is limited to purchasing my primary residence but have always tried to keep up with my local market. I am really impressed with this forum—the people, content, webinars, podcasts, you name it! Great job guys!

One of my favorite podcast is #233 featuring Arianne Lemire. Her story really spoke to me and gave me courage to get started! I am looking forward to connecting with you and hopefully as time goes on I can help someone reach their goals as well.

Speaking of goals, mine is to retire within the next 2.5 years! As to my “Why” it’s all about family and friends and serving my community more fully. To reach my freedom number requires a portfolio of 20 properties (Single Family Homes). Interested in cash flow not so much appreciation.

Here is where I need help: which the following markets would be a good place to start?

Indianapolis
Toledo
Jacksonville
Detroit

Open to advice, ideas and recommendations. Thanks for reading to the end!

Hello. I am just curious why you would look into a market like Toledo, which has little demand for rentals, over markets like Columbus and Cleveland?

OP

Rental Property Investor · Jersey City, NJ · Member since 2018 · 27 posts · 10 votes

8y

Jay Helms ha ha ha! Didn’t get the inside joke! guess you can tell how new i am around here!

Soomin Kim

Union City, NJ · Member since 2018 · 22 posts · 10 votes

8y

@Tracey F. Welcome Tracey. I am new too in north NJ, Union City! You mentioned that you spoke with turnkey provider, Morris Invest. You are thinking about invest in turnkey as 1st invest property? Market here is too expensive. I don't know how i can invest in local.

Gerard J.

Senior Network Engineer · Castle Rock, CO · Member since 2018 · 53 posts · 30 votes

8y

Welcome to BP and good luck with your journey. Former IT guy here as well - transitioned to more service provider role. Try not to get overwhelmed with all the BP contents and resources available - cause I am already. LOL

Ted DeVitto

Staten Island, NY · Member since 2018 · 8 posts · 1 vote

8y

Originally posted by @Raymond Y.:

Tracey, I was in your position only a couple months ago. Like yourself, I wanted strong cash flowing properties and I ended up purchasing a duplex in Allentown, PA. The Lehigh Valley is only 2 hours away and offers strong CAP rates with low purchase prices. On top of that, property values have been increasing dramatically the past couple of years. I would recommend checking out Lehigh Valley.

Hi Tracey, I second Raymond's approach. PA has great cap rates, and its a good place to start due to their low prices. Of course this isn't for every investor, but it works for me. It all comes down to what your goal is. Are you looking for properties that appreciate? Properties that cash flow? Both? Identify what it is that you are after, and the rest will start to make more sense.

OP

Rental Property Investor · Jersey City, NJ · Member since 2018 · 27 posts · 10 votes

8y

Hey @Ted DeVitto i am going after cash flow. I dont want to manage properties myself so i need a reputable turnkey provider that can hook me up with a really good property manager. Thats key for me since i dont have the time to handle day-to-day management issues.

OP

Rental Property Investor · Jersey City, NJ · Member since 2018 · 27 posts · 10 votes

8y

@Gerard J. i know what you mean about info overload! Thanks and wish you the best with your goals!

Gregory H.

Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes

8y

So @Tracey F., you've never bought an investment property before, you don't want to manage them yourself, and you want to retire on your real estate portfolio in 2.5 years. Apologies if I sound skeptical, but are you sitting on a decent amount of money that you have ready to invest, what is your plan?

Jason Clarke

Charlotte, NC · Member since 2017 · 57 posts · 17 votes

8y

Best of luck, Tracey! I'm in a similar position in trying to identify a solid market with good cash flow opportunity, which is tough to do in New Jersey. Raymond's suggestion on Allentown seems worth checking out.

Nicky Faucett

Real Estate Agent · Hainesport, NJ · Member since 2015 · 8 posts · 3 votes

8y

I live in the Burlington County NJ area, am a Realtor and investor (albeit not as experienced as some on BP forums). I would just chime in that starting out, a hands on approach seems most practical, just so you can get a true understanding of what goes into managing a property. Otherwise, once you do go to use a PM company, how will you really know if they are doing a good job (or as good as you would do it, if you've never done it before?) There are also still deals to be had in NJ, depending on the kind of property you want and what ROI you are shooting for. Towns along the Riverline are good places to look into. Just my two cents. :)

OP

Rental Property Investor · Jersey City, NJ · Member since 2018 · 27 posts · 10 votes

8y

@Gregory H. yep! that's the plan and it's well within my reach. Just need to land my first deal.

Gregory H.

Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes

8y

@Tracey F. I would be very interested to see the financial projections, if you wouldn't mind. What sort of capital are you starting with, and why the specific 2.5 year timeframe?