Interested in a small place can be turnkey of fixer upper good area, walking distance to downtown, shops or beach areas.

My PM, who appears to be a level headed guy, is telling me the same thing, just hard to stay calm when you feel you got bamboozled.

@Jason ClarkeAs a general rule, in NJ, areas with good school districts have lower cash on cash return because they are desirable places for families to live.Less desirable places command a higher Cap rate which translate into high CoC depending on the level of your investment.So a combination of good school district and solid cash on cash return is hard to find, in NJ.

We also have a Newbies Subgroup meeting especially for new investors but all meetings have educational content for all levels of real estate investors.

If you're looking for either land to build on, a tear down, or a major fixer upper, where do you look besides the MLS and craigslist?

Keep reading until you understand at a molecular level that 10x is playing way bigger than the millionaire next door. 

@Zachary Stoll, my guess is the Seller (read: Flipper) over-rehabbed it (for the area), but is still hoping to find an owner-occupier like yourself who'll overlook the fact that the sold comps / usual rents in the area do not support the asking price.Over time, its value will tend to devolve to the lowest common denominator (ie. comps that have not had the same level of money spent on them).Right now, the only thing I see going for it is that you'd get to live in a nice apartment (albeit in a sketchy neighborhood?)

Request the tenants leave, flip to 3 bedroom, and rent to new tenants at $986If I convert from  2 BR to a 3 BR, I've calculated a payback period of 2.3 years... here's the high-level of how I came to that number:Annual Opportunity Cost:3 BR vs 2 BR Rent = $2,790My Time (expect less needy tenants) = $1,183TOTAL OPPT COST= $3,973 <-- This is a favorable numberCost to get unit ready as 3 BRTotal to flip = $7,551 (includes paint, new floors, converting basement to bedroom, etc)  2 Months lost rent = $1,510 TOTAL UPFRONT COSTS $9,061 <-- This is an unfavorable numberPayback Period =  $9,061 / $3,973 = 2.3 years (Note if I'm conservative in my nubers, this becomes 3 years)Couple more things to note, they're set up on re-occurring payments and have not missed a payment.

AirBnb gets a bad rap among investors for the level of work it takes and the restrictions that cities are starting to enforce.

I think the key is really to keep the relationship at a professional level.