Newbie investor from NYC

[Kam Hou U]

Happy New Year BPers! 

I am Kam and I am a complete newbie in the Real Estate world. I currently live in Brooklyn, NY and I've been thinking to purchase my first property, preferably duplex or triplex, in the areas like Brooklyn, Queens, SI or even NJ. However, having read a number of real estate books and blog posts, I came to realize my area is playing by completely different rules and the price to rent ratio just do not seem to make sense, I am a bit confused as in which direction I should go, so I figured I will throw some questions out in my introductory post

• 1. Does it still make sense and profitable to invest in the NYC area given how saturated the market is today? If so,
  • a) What is working for local investors? Should I house hack or BRRRR or use some other strategy? I don't plan to flip as I am aware that it is more like a full time job and I am not planning to quit my day job at this point
  • b) How should I go about looking for great agents who understand the investor mindset and will be able to help me find my first deal?
• 2. Am I better off to invest out of state? If so, 
  • a) How should I go about doing this and building my system? I know for a fact that I will read the "Long-Distance Real Estate Investing" by Davide Greene if I choose to go this route, but are there any other recommendation? 
    b) Are there any recommendation for areas to invest in?
    c) I am assume it would be hard to build my system out of state, am I better off to invest in other RE funds (like Cardone Capital?) or Syndications where they have a more established system around real estate properties? Not really a fan of this as a lot of things are no longer in my control but it does seem to be the choice for some people.

[Abel Curiel]

Originally posted by @Kam Hou U:

Happy New Year BPers! 

I am Kam and I am a complete newbie in the Real Estate world. I currently live in Brooklyn, NY and I've been thinking to purchase my first property, preferably duplex or triplex, in the areas like Brooklyn, Queens, SI or even NJ. However, having read a number of real estate books and blog posts, I came to realize my area is playing by completely different rules and the price to rent ratio just do not seem to make sense, I am a bit confused as in which direction I should go, so I figured I will throw some questions out in my introductory post

• 1. Does it still make sense and profitable to invest in the NYC area given how saturated the market is today? If so,
  • a) What is working for local investors? Should I house hack or BRRRR or use some other strategy? I don't plan to flip as I am aware that it is more like a full time job and I am not planning to quit my day job at this point
  • b) How should I go about looking for great agents who understand the investor mindset and will be able to help me find my first deal?
• 2. Am I better off to invest out of state? If so, 
  • a) How should I go about doing this and building my system? I know for a fact that I will read the "Long-Distance Real Estate Investing" by Davide Greene if I choose to go this route, but are there any other recommendation? 
    b) Are there any recommendation for areas to invest in?
    c) I am assume it would be hard to build my system out of state, am I better off to invest in other RE funds (like Cardone Capital?) or Syndications where they have a more established system around real estate properties? Not really a fan of this as a lot of things are no longer in my control but it does seem to be the choice for some people.

Hello Kam,

I completely agree with you, investing in high-priced areas (like BK, Queens, SI, NJ) does involve different rules.

To answer your questions:

1. Yes, depending on your short-term and long-term goals.

1a. Both house-hack and BRRRR strategies are working for local investors. Mainly because these strategies allow local investors to begin their portfolio in a market that they are familiar with for as little as 3.5% down via FHA. These strategies give new investors the ability to gain acquisition, property and project management experience.

On the other hand, flipping a house will give you the same experience but you'll need all-cash or hard money to finance the deal, you'll need to take time off from work (as you eluded to) to manage the project OR you'll have to pay someone else to manage the project.

1b. The best way to find any great RE professionals that are investor friendly is right here on BiggerPockets. This is the top site of its kind for RE investing information and networking within the industry. Aside from that, getting references from people you know is another solid way to find a prospective agent to pair up with. That being said, I'd be happy to hop on a call and discuss your goals further.

2. Again, yes, depending on your short-term and long-term goals.

2a. Find professionals in your target market(s) who have helped long-distance investors in the past. 

2b. I cannot speak from personal experience but many of my past and current clients have had success in Northern NJ.

2c. I don't have any experience in this to give a good answer but I too am not a fan because I'd have less control.

Best of luck to you moving forward!

Abel