All Forum Posts by: Nicole Cotrino

I am wondering the same thing! What did you end up deciding on for your estimate?

Hello,

I am a new investor from NJ considering investing in rental properties in Lancaster County, PA and would love some input from anyone with experience in the Lancaster/Lancaster County area. We don't want to invest in NJ because of the extremely high prices and property taxes. We are looking at Lancaster because it is within driving distance, prices seem reasonable in relation to rental rates, and I have found several articles talking about the low vacancy rate.

We are driving out there next week to explore the area and look at some properties, and would love some input first.

Does anyone have input about the area, including...

• Best areas/types of properties to invest in?
• Areas/types of properties to avoid?
• Whether the vacancy rate is truly low?
• Any recommended property managers?
• Any recommended contractors?
• Any other feedback?

Thanks so much!

I am going to look into investing closer to home, then. I didn't realize the influx from Lakewood was pushing all the way over into Brick/Toms River. Thanks.

@Eric Bilderback - Thank you for the feedback on Bend! I analyze basically everything within our price range on the MLS for Bend and Redmond, and cash flow is really not great. We've thought about making some very low-ball offers that would give us minimal cashflow if they were to be accepted, but it's a hard choice, because cash flow is so much higher elsewhere. Finding a place by the college is definitely a possibility, simply for the appreciation aspect. And, we were also hoping that rent would end up going up there once the college is up and running, because there will be thousands of more people needing a home in that part of town. What do you think?

And, @Mike Hanneman, I've started looking into the midwest and Philadelphia as well. So many options!

Just wanted to thank you all for your input. It does seem like turnkey investing will be more risky in a lot of ways. Any advice for specific ways to do our due-diligence with this sort of investing (questions to ask, ways to tell if a company is really a good one, things to do when we visit, etc.)?

Thanks for the input. I understand your perspective, and I would love to find a property closer to home that I could invest in. However, everything I have found around me is either priced too high, or won't produce positive cash flow because of crazy high property taxes. 

Sue - I see you live in Northern California, where prices are also high and cash flow tends to be lower. How have you managed to find investment properties in the area? I'd love some creative advice on how to do that.

I do not expect an armchair investment where I do not have to do anything. In fact, I am able and willing to be as actively involved as possible. It's just that NJ doesn't seem like a good investment option to me, and managing a property myself from a distance also doesn't seem like a good idea, especially as a new investor with zero experience. 

I live in Central NJ and am currently looking to invest in my first rental home. Property taxes here are so high that I'm feeling like this isn't the right place for us to invest. We have also looked into the Oregon market because my mother is a realtor there - however, it seems like we would be banking on appreciation far more than cashflow, and I'm not sure I like that idea.

So, I recently discovered the idea of turnkey property companies and am seriously considering that turnkey investing may be the best route for us. I just wanted to (1) find out about people's experiences with turnkey investing, and also (2) find out what markets seem best for it?

I have read a lot about Kansas City, Indianapolis, and Jacksonville, but am completely open to other markets. Ideally, I'd love a combination of decent cashflow and also decent likelihood that properties in the area will appreciate. (I'd exchange some cashflow for a greater chance of appreciation, though I do want some positive cashflow.)

Any input would be very welcome and appreciated! Thanks.

Hello,

I should start by saying that I am completely new to this world of rental investments, but I love the idea of it. I am so excited to get started, but I'm having trouble because I am having trouble deciding on a market.

I live in NJ and property taxes are extremely high here. I'm having trouble finding properties that would have good cash flow here. For anyone else in a state with high property taxes, how have you dealt with that? Have you found it better to hold out for the right opportunity in your local market or go into a market elsewhere? 

We would plan on using a property management company either way, and would fly out to see the property during the inspection if we were to purchase in a different state. I just stumbled on the concept of turnkey properties, which sounds like it could be a good idea for out-of-state investors. 

We are leaning toward purchasing out-of-state. Are there any major considerations to buying out-of-state that you think I should consider? Also, why specific markets would you recommend?

Thank you!

Thank you both for your input. I agree that we would both have to find new tenants for both units - $800 to $1200 is a huge leap.  Great point about how the landlord could be checked out and we could have some extra maintenance to deal with. 

$300k is a lot for the rent, based on other markets I am looking at. But, we are looking at buying there because we may want to move to Central Oregon someday and it would allow us to live in one unit while we rented out the other. Also, property taxes in Oregon are SO much lower than those in NJ - a home that would be $6,000 in property taxes in NJ could be $2,000 in Oregon. Lastly, we think this area of Oregon is exploding and still has a ways to go before it levels out... so, to some extent, we are banking on appreciation.

We are currently considering a rental property in Bend, Oregon, but the current rent is far too low. It is a duplex with a list price of $332,000. Current rent is $800 per unit. It's in a great neighborhood, in good condition, and the area has an extremely low vacancy rate (less than 1%). All the research I have done (including Rentometer, Zilpy, talking to my realtor, and contacting a property manager in the area about it) has put the fair market value at $1200 per unit or more (so total income of $2400). 

As a new investor, I'm just curious what other people's experiences have been in situations like this. If I base my calculations off an income of $2400 and make a low offer, the numbers make sense to me. But, if I use $1600 total, the numbers don't make sense at all. 

Thanks in advance!