Everyone,
I am on the hunt! I have started looking for deals and have talked to a lot of investors in my local market (long island, ny) and they all agree that Long Island is too hard to cash flow. I am writing to see if anyone has experience with homes in markets close to the Tri-State area that are relatively good cash flow markets where the purchased home isn’t in a warzone.
Please advise,
Try:
NYC
The Bronx
Staten Island
Manhattan
Long Island
Flushing
Queens
…or not!
We told you months ago that you would struggle to cashflow in the NYC area…you will also struggle to cashflow anywhere in the Northeast…
You might find somehting in rural Pennsylvania, Upstate NY, etc. that could, potentially break even but even those are not overly likely.
Think “RED”
Still opportunity in Central CT
You could cash flow down in Albuquerque, NM if you’re willing to venture outside the New York area.
I agree. I was talking to Jason yesterday and the first property he found looked like a good deal if he could negotiate a little off the price. Opportunities still exist in CT, they just usually need a little rehab to make them a deal. This one he found needed the basics- carpet, paint interior and exterior, maybe a few broken windows, etc. They aren’t as easy to find as they would be in the red states but they are there. I wouldn’t pack up and move just to find cashflow. I commend Jason for wanting to stay within driving range of the properties he buys to give him a little more control, even if he uses a PM. Always better to be able to periodically drive there (or in the case of the CT shoreline take a ferry there if he’s to lazy to drive).
I was contacted yesterday about a deal in Steelton, PA. Its a 4 bedroom, 1.5 bath home for 39,000. The bird dog says the property needs 13,000 in rehab and they have an appraisal on file for 75,000. They attached an excell spreadsheet that calculates all possible cost, they said they already have a contractors bid, and have an appraisal conservative estimate.
The way they break the deal down its:
$76,000-$13,000-$39,000=$24,000
Let me know if you want more details or if someone can help me analyze this deal to see if its the real thing.
The big thing here since we are talking about cashflow is what are the market rents. Try looking around on Craigslist in the area, you should be able to determine with little effort what the market rents typically are. In my area that might rent for $1200 a month, down there it might only get $500. You need to know for sure what the rent will be to make any valid decision.
How much of that cost are you going to have to borrow? How much are you putting in out of pocket?