All Forum Posts by: Heather Bailey

Comparing real estate to the stock market really depends on your needs. With real estate investing, you have the tax benefit and depreciation along with what is hopefully an apreciating  asset. One other thing that people in their 60s can consider is - if you are planning on taking Social Security and making passive income part of what you live on, rental income may not count as income against your Social Security benefits. Definitely consult with your accountant on that. Ideally, it would be nice to have both types of Investments.  

Hi Diana,  i'm in New Jersey and I'm in the same boat. Nothing pencils out here so I am looking at other states as well. A really important thing to keep in mind is tenant landlord laws. States like New Jersey and New York highly favor the tenant and evictions are very difficult and can take months.  A lot of people in the comments mentioned Ohio and Texas. Both of these states have more favorable tenant landlord laws then New Jersey and New York. Building a team will be your most important starting point.  David Green wrote a great book: Long Distance Real Estate Investing.  This is a great read and gives you a good road map for starting your out of state real estate investing journey. Good luck to you.  

hi Jennifer I'm in Central New Jersey and I'm a realtor with Coldwell Banker inMorristown. Happy to talk to you. I've got some contractors in this area. Prices here are crazy, so I am starting to look out of state. I do have some familiarity with auctions and I can help you with that but the auction prices are getting competitive too and now we are starting to see nonprofits come in claim the Community Wealth Preservation Program exemption.  But if you can travel to different counties, especially out in Sussex and Hunterdon, you may be able to find a good deal.   Let me know where you are located and if you want to meet up.  

Congratulations! Thank you for sharing. Good inspiration that successes out there.

Thanks Jeff!   I do the umbrella policy and will check with my carrier.   I was planning on shorter term rentals as I have a family member who comes for 2 months in the summer, but I assume a landlord policy would cover that as well.   Insurance is getting to be like taxes.  They never go down!   Thanks and good luck to you.

Hi all!  I purchased and renovated a house with a separate legal mother/daughter apartment that I am preparing to Airbnb here in Central NJ. 
I wanted to find out from those of you who are house hacking; do uou have separate insurance for the rental?   Are you able to separate it from your primary residence for tax and liability purposes?  

Hi John!  Great to see your message on looking at auction properties. This is a great way to get an affordable deal. There are definitely risks that will be completely outside of the auction house. Definitely do homework on making sure you can get a clean title and make sure that the foreclosure was on the first lien.   In a rare case, it could be the second lien that is forclosing meaning the first lane still exists, and you would be on the hook for that. Go to your town clerk, and look up all the information on the loans on the owner and the property.  I highly recommend a book called Foreclosures Unlocked by Matthew Tortoriello and Kevin Shippee.  They also are on TikTok as "two guys take on real estate". They have have done a great job outlining all the possible things that can go wrong and what  can go right.   Finally, check with the Town to make sure there are no municipal liens, Make sure they're on Town sewer, check with the tax assessor to see how many bedrooms the tax office thinks there are, (important if you are flipping) buy ok to have more bedrooms if you are planning to buy and hold.  On utilities, I bought a foreclosure in NJ and found out it was not attached to Town sewer and I actually had to extend the main line up to my property then put the lateral in and abandon an old cesspool.  That was more than $80,000. It was a high value house so it was OK but I sure don't want to run into that again!    Last I would see if there is a record of an oil tank. Contamination would be a big problem to find.   It would be nice if you could do a tank sweep, but see if you can see any trace of a pipe from the curb if they don't let you do a sweep.  If you have a real estate agent in your market that can help, ask them to look up any old listings on the property.  This is a good way to see old photos, bedroom accounts, utilities, etc.. they may also be able to help u check if it's in a flood zone. Good luck!  Let us know how it works out!

Hi Elija!  Great to see your post and congratulations on getting your license. This is a hard job. I've been doing this for almost 15 years in NJ  and the Client pipeline is the toughest part.   The fact that you  already had two closings in your 1st four months is amazing. You're doing something right. Keep in mind that this is also a very tough time to be entering the market as an agent because the inventory is so low.   It's only going to get better from here.  If you can work this job in this market, you can do it anytime!   On working this job, I would say to keep the focus on the basics of marketing and client relations. Get your CRM up and running and keep in contact with everyone with content about the market, keeping in touch with past clients - just asking them how their house is, let them know that you were thinking of them when you drove past the house,  ask them if they made any improvements, etc. Be authentic and take an interest in them.  Add in community involvement any way you can.
What helped me tremendously in the beginning was to sit an open house every weekend.  Since I didn't have my own listings, I offered to other agent's to sit their open house. This is how I met my first clients and now a lot of my businesses is Repeat business.    Investors are also great  Repeat clients.  So, spread the word with your investor contacts that you are licensed and you are keeping your eye on opportunities in the market for them. Also, grow your contractor lists, maybe make posts about their work.   This will go a long way in creating a network and future sellers and buyers will start to see you as a resource in this arena.  Stick with this and keep your goal of becoming an investor.   The experience/knowledge of being an agent will help you so much.  You will have a leg up on the language, transactions, inspections etc.  I will say, every transaction will teach you something valuable.  After 15 years, I'm still learning.  Good luck to you!! 

Hi Denise. We are in the same boat here in New Jersey. Prices are through the roof in this current market with low inventory and single and multi family properties just don't pencil out. I am looking at Ohio because I can get there in under 10 hours.  And, the landlord -Tenant laws are much more favorable there than they are here in New Jersey. So I would look at what states are near you that have favorable landlord laws. Then, get David Green's book:  "Long-distance Real Estate Investing". This is a great read and references some of the points that other people in this thread have mentioned about building a team. Also consider other niche investment types, perhaps like section 8. Brandon Turner has an awesome podcast called "Better Life".  This is hands down, my favorite source for inspiration.  
 I highly recommend.  The episodes are quick, informative, And every guest has been amazing in sharing their journey and tips for success.   There are a few Niche investment types like section 8, assisted living, sober houses, etc. Perhaps investing in one of these types of properties could help get you started. I am going to look at some of these as well.  That better life podcast has taught me that there are a lot of ways to get involved in investing. So keep at it and keep learning.  Here's to our successful start in 2025. Keep us posted and I will do the same!  

@Stephanie Menard. This was not just theft, but also vandalism. Isn't that criminal? I'm so sorry this happened to you and great suggestion on adding a paragraph to the lease.  Thanks for sharing and keep us posted.