All Forum Posts by: Mary Ann

 Re-reading some of your concerns I realize that I have not addressed one of them, that you can't really afford to buy in NYC without leveraging up to kingdom come ... that is a very valid concern, since the only ones who really lose out long term in a market like NYC are those that can't make it to the long-term because they stretch too far and are forced to sell at the worst time or give it back to the bank. So ... to address that valid concern, here are some other options to consider that are better than buying remotely out of state IMO:

1. Look further out. OK, so maybe Manhattan or Brooklyn are too expensive for you, but I bet if you looked within a 1 hour commute distance, you would likely find something you could afford. Looking back, many who couldn't afford Manhattan bought in Brooklyn ... how'd that work out for them long term?:) Yes it may be a sacrifice, but getting ahead will require sacrifice one way or another.
2. If you want to move to Florida eventually, consider moving there sooner rather than later. Not next week or anything, but you could make yourself a sensible plan to move within the next year or two. Then, once there, invest as a local. Then you don't have to give up control and get all the benefits to being a local hands on RE investor, of which there are MANY.
3. Buy a REIT or basket of them. You are going to give up control investing out of state anyway, so you'd be better off IMO giving up control to a large, established team with an easily verifiable track record and fully diversified RE portfolio ... in other words a REIT.

Any of these options would be better than the one you are considering IMO. So many newbies vastly underestimate how hard it is to successfully invest remotely without significant scale or experience, how hard it is to find a competent, honest, reasonably priced team on the ground, and what a nightmare it can be if you don't get all these elements right. Food for thought ... I hope this helps ...

 ... and how many more investments will you need to buy each year to keep up with YOUR rent increases in NYC ...

When the market crashed in '08 I was living on the Westcoast and was renting a 1M house, overlooking the SF bay for $ 2495/month. 

I started buying properties sight unseen in Atlanta for 10K. With basic rehab I was in under 20K in each house and was renting for $ 600-650. 

When I told people in CA that I was a landlord and that I was renting where I lived, they all didn't understand why I didn't go ahead and buy in California. 

1) I couldn't afford to buy where I was renting. Awesome location. But it would have taken 20% downpayment. So, even those 1M houses around me crashed to 500K, that would have been 100K downpayment. Instead I took that 100K and bought and renovated 5 more houses in Atlanta and got another +3k/month in rent, while my rent was 2495 - so, it was covered. If I had bought, I would have likely had a monthly payment of 4-5K PITI per month.

So, if you can't really afford to buy where you want to live, then I get it. Don't let anyone push you into something that you can't afford. just because it might appreciate. Everybody has 20/20 hindsight.

yes, people that I work with do (They live in NY, DC, CA etc). You dont just throw a dart on the board, though,  we leverage a number of factors specific to you, so that you can find an out of market property you are comfortable with (where you're located, how far you're willing to travel, and finding out what assets you can leverage on the ground). This would be a great question to post in the mastermind group for low income invstors (1200 active members - see my profile for details). Good luck to you!!!