Tips for a first time investment property buyer? Would be two of us going in and looking to put up to ~$100k down. How far away is too far for first time purchase? Currently live in Jersey City and cap rates are atrocious around here, so thinking of going out towards Newark and surrounding areas to get a better return. Have you done your own reno/repairs? Or have handyman/contractor do everything? Thanks!

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Dont put more than 3% down, use the rest of the $100k towards home improvements (will pay dividends when selling the house), brokerage, savings etc. Every $100k you put towards mortgage saves you about $600 on your monthly payments. Terrible savings/return if you ask me. You’re much better off investing somewhere else even in this God forsaken economy.

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Yeah, when interest rates were low, banks were
more leanient with their lending. I think lending has tightened a lot, especially with prices declining in many markets.

Who’s the other person that you’re “going in on it” with? Make sure your partnership agreement is solid!

Buying out of state for better cap rates isn’t too hard, especially post Covid. But I wouldn’t dare do improvements yourself if you’re buying remotely. Try to find a realtor who has experience working with remote investors. They will guide you to what parts of town work best, and most will also have a Rolodex of contractors for you to work with.

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Good advice here

I bought my first 2.5 hours away from my residence. It’s not that bad, and once you get tenants leased, you’re barely there anyways.

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