Tri-State, NY/NJ niche areas

[Nick Adams]

I know this isn't a unique problem, but I am not a native of the Tri-State area and now work in NYC and live in NJ.  I am constantly hearing that one of the biggest mistakes new investors make is purchasing too far from home, but I'm finding it very difficult to make the numbers work.  For example, most of the multifamilies in my area are renting out around 0.6% of asking price.  

If anyone with more experience in this area could give me a handful of neighborhoods on which I should concentrate, that would be very helpful.  Thank you.

[Franco Li]

Nick Adams I work with some folks who look into buying NYC and properties in the boroughs and think you should definitely tread very carefully. Most folks who I've analyzed and worked on the investments with are foreign buyers who do all cash ($1-1.5M!) because frankly they need to hold down their money somewhere. In saying that, NYC's price/rent is so high that it is really hard to work the math. If you need leverage, you'll probably just be betting on property appreciation. I do think there are some areas that can work but a bit further like East New York, Long Island, east of Queens, even Staten Island. Good luck!