What to do with $120K

General Real Estate Investing
1

Hi all,

I am not new to RE investment but I am new to the US RE market.

I live in NYC and have been looking for a studio to buy (around $380K).
But I have been reading and learned that NYC market is at its peak
and buying now isnt exactly a wise thing to do.
I have around $120K in cash to play with.

Here are my options

  1. Buy a studio (co-op) in NYC to live in and get some tax benefits.

  2. Buy elsewhere (Baltimore, Orlando, etc…) in a lower price
    range and I could even buy 2 properties if I structure it well.
    I prefer to invest somewhere near NYC (few hours by car) maybe
    upstate NY?

I more like this option.

  1. Your advices here!!! :slight_smile:

My ideal strategy buy and hold with break even or very little negative cashflow after tax.

Your help is much appreciated.

Thanks and regards,

Melb

2

I would hold until the bubble pops. Than you would have cash, and cash is king after the Banks get a well deserved spanking.

3

Personally, I HATE NY with a seething passion – I would move! But then, that’s me.

Everything in NYC is overpriced (including the freakin’ Yankees’ crybaby, sub-.500 ballplayers).

I would look to invest elsewhere.

Keith

4

I have some prospects in the NY market however as stated before the market up that way is way to high…! I agree with your suggestion…take your cash and buy out of state…! I wouldnt do baltimore though…! I definately consider where I’m at…down in Atlanta GA…! The market is hot…and the prices are still low…!

5

you can invest anywhere and get good tax breaks.

i would avoid NY state because of the 5% property tax in many areas.
i would also avoid all places that have already gone up 50-100% in past 3 years.
that pretty excludes both coasts!

6

Although NY is heavily taxed many people are still buying.

Around my neck of UPSATE NY we buy houses and offer seller assisted financing to get new people in the market. Many people can afford houses but cannot come up with the down payment. We make 10-20K per house. Were only a few hours from NYC as well.

7

thats great if you live in the area, but might be hard to replicate long distance. where are you?

i looked into places like syracuse but its had negative population and job growth for many many years.
i’ll wait till things show signs of improvement.

8

Do a little research on where there is growth and emerging markets and sink the money there. Its better to buy low than high eh?

Then pick up a management company to make it profitable and sit back and relax.

That…or just give me the $120K :wink:

9

Thanks for all your help.
After I posted my message, I read a lot on this forum and saw similar posts.
“what to do with 100K, 80K, etc…”.
I learned a fair bit and will keep reading.
My next step is to find an area I am comfortable with (definitely not NYC)
which is still under value, good population growth, potential for capital gain.

U.S. is a BIG country to invest in RE. I am sure I will find something.
(well, dont we want everything :)…

o r else I just give RyanTrim the money :).

Thanks again
Melb

10

yes, i agree…

yankees stink!!!

Go Red Sox!!!