REI Newbie from North Jersey/NYC Metro Area

REI Newbie from North Jersey/NYC Metro Area

New to Real Estate · Bergen County, NJ · Member since 2020 · 7 posts · 8 votes

Hello everyone!

My name is Marissa and I am from the North NJ/NYC Metro area. I am 31 years old and have always wanted to get into REI, but due to my job I never really found a "right time." For the past 7 years I have worked in the cruise industry as a shipboard hotel officer. This job has afforded me the opportunity to save a good chunk of cash (though I'll admit I have not saved as much as I could because I have enjoyed traveling so much [no regrets!].) As my industry is currently shut down, I decided now was the time to really get serious in getting the ball rolling.

I have been listening to the BP podcast and BP Rookie podcast as much as possible (probably about 25 episodes so far), attending the weekly BP webinars, and am reading up a storm. So far I have read David Greene's BRRRR book and his Long Distance Investing book.

I am primarily interested in building a buy and hold portfolio that produces enough passive income to quit my job. In saying that, I should clarify that I don't actually want to quit my job as I enjoy working and especially my line of work, but that I want to make the amount of money that equates to that feeling of "freedom" where I am getting up for work every day because I WANT to and not because I HAVE to. I also want to retire by the age of 50, if not earlier.

I am just starting out but feel I am most interested in the BRRRR strategy. However, due to my home market not being the most conducive to this strategy, I will probably need to pick another market and of course BRRRRing out of state is a very intimidating task. Moreover, no one in my family or close circle has done anything like this, and I'm getting a lot of skepticism from them, particularly in regard to investing out of state being a "bad idea."

If anyone has done this on their first deal and has any advice, I'd appreciate it. I'd also love to connect with anyone who shares the same goals, strategies, challenges, etc.

Thanks!

Marissa


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Miami, FL · Member since 2020 · 7 posts · 10 votes
6y

Hi everyone and welcome @Marissa Wurms. I'm 35 and also just starting out learning about REI and I live in the NYC metro area. I am an attorney who would like to use REI for passive income and financing other ventures. I am interested in buying and holding multifamily properties. I envision my first purchase also being my primary residence. I would like to stay in NY but I'm limited to the metro area and nearby suburbs due to my job's limitations on where I can have primary residence. So I am currently struggling to identify the right market. I also need to learn more about what is the "right price," especially for my first purchase. Aside from the bigger pockets guide, can anyone recommend other resources for us newbies?

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  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
    6y

    Marissa

    Welcome to Bigger Pockets. Bigger Pockets is a great place for education and networking and is full of great content. 

    I recommend that you check out the following resources:

    1. Start by reading the Ultimate Real Estate Investing Guide: https://www.biggerpockets.com/guides/ultimate-real-estate-investing-guide/introduction

    2. Check out other online guides available here: https://www.biggerpockets.com/guides

    3. Take a look at BP's blog where new articles are published every day: https://www.biggerpockets.com/blog

    4. If you want to network or ask specific questions about your local market, go to your local real estate forum and connect with investors from your area: https://www.biggerpockets.com/forums/86-local-real-estate-networking

    5. You can meet local investors by registering to attend real estate events in your area: https://www.biggerpockets.com/forums/521-events-and-happenings

    6. BP has various tools to help you analyze your deals (rentals, flips, wholesale, etc). : https://www.biggerpockets.com/investment-calculators

    7. If you can't find what you're looking for, try the Bigger Pockets Fileplace. It contains hundreds of files such as ebooks, checklists and spreadsheets for real estate investors: https://www.biggerpockets.com/files 

    Good luck investing. Let me know if you have any questions.

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  • Homeowner · Wilmington, NC · Member since 2020 · 6 posts · 6 votes
    6y

    In a pretty similar situation to you, Marissa! Also in NNJ which is definitely not a favorable market for us wanting to start out. Where have you considered out-of-state? I've looked in NC, Philly area and South Florida...but since I'd also use my first purchase as a primary residence I can't really commit since it would have to be a place I know I'd move to. Happy to follow this post and see what other responses come in...

  • New to Real Estate · Bergen County, NJ · Member since 2020 · 7 posts · 8 votes
    6y

    @Bill Hampton Thanks for the warm welcome and all the advice. I look forward to diving in head-first!

    @Daniel Dawson I have indeed considered out-of-state and will likely need to go that route to have the type of success I desire, but of course it's very daunting as a newbie to do this at all, let alone out of state!

  • Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    6y

    Hi @Marissa Wurms welcome! Which cruise company did you work for? 

    I had a similar experience, I was working full-time for Collette (guided tour company) but was furloughed and then quit this year due to obvious peeps can't travel reasons like you said. Jumped into real estate after that! 

    Was doing it on the side for a while though. Currently own a few properties in Philly, and also wholesale deals there too. Let me know what questions you have about the Philly market. It's still solid for investing even given the current economic turbulence as long as you still buy at the right price (but I guess that goes for anywhere really) 

  • Rental Property Investor · Philadelphia, PA · Member since 2015 · 478 posts · 362 votes
    6y

    @Marissa Wurms You are fortunate to live within an an easy drive to MANY markets. You dont need a major metropolitan area or even a town you ever heard of before. You need a place that fits a certain criteria you define and I personally suggest a place close enough to get to know well and if you are planning to rehab and do this without help, be able to visit easily and often.

  • Miami, FL · Member since 2020 · 7 posts · 10 votes
    6y

    Hi everyone and welcome @Marissa Wurms. I'm 35 and also just starting out learning about REI and I live in the NYC metro area. I am an attorney who would like to use REI for passive income and financing other ventures. I am interested in buying and holding multifamily properties. I envision my first purchase also being my primary residence. I would like to stay in NY but I'm limited to the metro area and nearby suburbs due to my job's limitations on where I can have primary residence. So I am currently struggling to identify the right market. I also need to learn more about what is the "right price," especially for my first purchase. Aside from the bigger pockets guide, can anyone recommend other resources for us newbies?

  • Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    6y

    @Nanyarid Gonzalez here is the public record website for looking up property information for Philly - https://property.phila.gov/

    You can look up a property owners name, and then reach out to them if you're interested in buying their place!

    Hope this helps!

  • New to Real Estate · Bergen County, NJ · Member since 2020 · 7 posts · 8 votes
    6y
    Originally posted by @Alex Capozzolo:

    Hi @Marissa Wurms welcome! Which cruise company did you work for? 

    I had a similar experience, I was working full-time for Collette (guided tour company) but was furloughed and then quit this year due to obvious peeps can't travel reasons like you said. Jumped into real estate after that! 

    Was doing it on the side for a while though. Currently own a few properties in Philly, and also wholesale deals there too. Let me know what questions you have about the Philly market. It's still solid for investing even given the current economic turbulence as long as you still buy at the right price (but I guess that goes for anywhere really) 

     Hi Alex. Thanks for the outreach! I have worked for Carnival Corporation for the past 7 years. It's been an amazing experience all around - so many positive things to say.

    I am looking to BRRRR properties and be all in under 70k, so I'm not sure if that is possible ANYWHERE in the Northeast, which is why I believe I may have to do the long distance thing. I'd much prefer to stay within driving distance to manage the rehab, etc., but if it's not possible I may have no choice but to find another market in the South or Midwest...

    Marissa

  • New to Real Estate · Bergen County, NJ · Member since 2020 · 7 posts · 8 votes
    6y
    Originally posted by @Sheryl Sitman:

    @Marissa Wurms You are fortunate to live within an an easy drive to MANY markets. You dont need a major metropolitan area or even a town you ever heard of before. You need a place that fits a certain criteria you define and I personally suggest a place close enough to get to know well and if you are planning to rehab and do this without help, be able to visit easily and often.

    Thanks for the welcome and advice. As much as I'd prefer to keep my rehabs within driving distance, I want to BRRRR and be all in with cash under 70k, which just doesn't seem possible in the Northeast!

  • Rental Property Investor · Philadelphia, PA · Member since 2015 · 478 posts · 362 votes
    6y
    Originally posted by @Marissa Wurms:
    Originally posted by @Sheryl Sitman:

    @Marissa Wurms You are fortunate to live within an an easy drive to MANY markets. You dont need a major metropolitan area or even a town you ever heard of before. You need a place that fits a certain criteria you define and I personally suggest a place close enough to get to know well and if you are planning to rehab and do this without help, be able to visit easily and often.

    Thanks for the welcome and advice. As much as I'd prefer to keep my rehabs within driving distance, I want to BRRRR and be all in with cash under 70k, which just doesn't seem possible in the Northeast!

     Yikes - at that price point, you have some  challenges ahead. You really want to plan to be wherever that is for a while. Good luck!!

  • Miami, FL · Member since 2020 · 7 posts · 10 votes
    6y

    Thanks @Alex Capozzolo for the information on Philly! Given my job limitations and since I'm planning to house hack I unfortunately can only go as far as a NY Suburb near NYC.

  • Rental Property Investor · Bayonne, NJ · Member since 2019 · 12 posts · 3 votes
    5y

    @Nanyarid Gonzalez

    Hey everyone just following up on this thread. How are you all doing? Anyone do any investing over the last 12 months?

    I’m trying to decide between Jersey City, the Bronx & Yonkers to buy my first small multi-family but I can’t seem to choose. Anyone else struggle to choose a location for their first investment property?

  • New to Real Estate · Jersey City, NJ · Member since 2020 · 33 posts · 11 votes
    5y

    @Michael O Hanlon

    Hey there, I’m in the same position as you. Hard to find house hacks for a reasonable price, high price and still need lots of $ out of pocket for rehab and not just cosmetic rehab I must say. I’m after inspection for a house in Bayonne and getting estimates from GC to repair foundation issues (I will ask to cancel this contract because of them) newbie with foundation issues that don’t know how to fix and also consider the ripple effect they cause on top the lots of money I need to repair means number wise it doesn’t work. I’m about to drop those news to my agent and attorney (sure push back coming) but it is what it is and now back to searching on this market. It’s discouraging but it’s how it is.

    How are you doing? Have you done any search in areas like Montclair, Passaic, bellville?

  • Rental Property Investor · Member since 2021 · 23 posts · 11 votes
    5y

    Hi Marissa! Welcome! I am also new to REI. In the same boat currently devouring all the info I can at an impossible rate! Wish I had started at 31 for sure. Good for you! I have recently posted as to advice on making my target market outside of my state as well. I have heard flips are very difficult with that regard, but buy and holds seem doable to me and at a price more conducive to the beginner budget. Anyhow, we have come to the right place to find out. I have been pursuing this dream pretty much in silence determined to avoid the naysayers and the negativity myself. We have to be our own biggest believer. I figure after I make my initial investment, I'll come out of the closet LOL Best of luck to you!

  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    @Marissa Wurms I to was not excited about investing in NJ when I first got started in REI. Fortunately thanks to great sites like BP and meeting other members I found a way to make it work. Looking back at it all I am absolutely grateful my wife and I decide to invest in NJ. I was told its a sellers market (it was and still is), I was told we cannot cash flow ( we do enough to pay for our primary in full and then some) I was told tenants laws are horrible (we are over 7 yeas without 1 missed rent payment, zero evictions needed). NJ is great place to invest, best part is my rentals are all a short drive away.

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  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    5y
    Originally posted by @Eric Gomez:

    @Michael O Hanlon

    Hey there, I’m in the same position as you. Hard to find house hacks for a reasonable price, high price and still need lots of $ out of pocket for rehab and not just cosmetic rehab I must say. I’m after inspection for a house in Bayonne and getting estimates from GC to repair foundation issues (I will ask to cancel this contract because of them) newbie with foundation issues that don’t know how to fix and also consider the ripple effect they cause on top the lots of money I need to repair means number wise it doesn’t work. I’m about to drop those news to my agent and attorney (sure push back coming) but it is what it is and now back to searching on this market. It’s discouraging but it’s how it is.

    How are you doing? Have you done any search in areas like Montclair, Passaic, bellville?

    Foundation issue can be a major problem. If you are getting push back from attorney and realtor they better have a good story as to why it is worth fixing.    At the end of the day unfortunately there are a lot people out to close a deal.  I hope this is not the case for you but be aware many agents just want a sale then run away after its complete.  

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  • Real Estate Agent · NJ · Member since 2021 · 20 posts · 7 votes
    5y

    @Marissa Wurms just coming across this thread now and I as well am newer to real estate both as an agent and investor myself. My wife and I have jumped in to the whole world of REI and living/working in North Jersey the bar of entry is quite high if you are looking to get straight into an investment unit. We found ourselves needing to get creative with money we had for a down payment and what we had at our disposal, our single family home. We are currently under contract, with 2 small kids and all, making the move from our single family home liability to a multi-property live-in/flip househack in North Jersey. Being a primary residence we are able to put much less down, fix it up while we live there, and we will be living for free and cash flowing a significant amount when we move out. I've read other people's stories on here and most the time I've seen the strategy of "house hack" and it is a younger individual, maybe married, but no kids. The hardest part is trusting that this new move for our kids will be beneficial in the long run and I echo what @Shawn Mcenteer was saying about NJ being a great place to invest, but a hard place to start investing. We wanted to stay as local as we could and we have made the HUGE jump into going all in on our strategy. The CoC will be great once moving out, but the challenges are for sure there and whatever strategy you go with they will present themselves. Good luck getting started!

  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    Way to go @Mark Sinclair  House Hacking with 2 kids is awesome!   My wife an I closed on our first house hack the same week my second was born.  By the time we closed on our second house hack we had 4 kids!  I think house hacking is a smart way to go with a family.  keep it up buddy :)

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