Best Investing Strategy on Long Island

[Michael Giordano]

Hey Guys, 
Im looking to get into real estate investing on Long Island but I'm not sure what the most effective strategy is. It seems like the prices are too high to buy and hold as a rental because it wont cash flow. I also want to use a strategy that will give me some short term money to invest in out of state rentals. I was thinking flipping and/or wholesaling. Are there certain areas on Long Island that are better for these strategies? I am also an agent, but I am having a hard time finding flip deals on the MLS. Is driving for dollars the better way to go? or foreclosures? I am very motivated but I don't know where to start. Especially on Long Island where the house prices and property taxes are extremely high. I would appreciate any input from anyone who is doing this on Long Island and would love to connect with new people.

[Ben Wagner]

Hey Michael, cash-flowing properties on Long Island are pretty tough with the high prices and high taxes like you mentioned. There are select areas out east with lower pricepoints and taxes, but it's very competitive because there are so few viable areas and everyone is looking to buy in the few places that work.

We used to be able to buy dozens of flips a year off the MLS but that's gotten a lot harder in recent years. We now do 100% of our deals through a large direct-to-seller marketing budget. However, as someone starting out, I think you can find success by doing the things that don't scale for a larger company like us. One of the best options I think is door knocking. The prominent venture capitalist, Paul Graham, wrote an great essay on the topic of startups doing things that don't scale - http://paulgraham.com/ds.html