NYC area house hack - any borough, NJ, LI, Westchester

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NYC area house hack - any borough, NJ, LI, Westchester

Paul Walker
New to Real Estate · New York, NY · Member since 2021 · 8 posts · 15 votes

Hi BP!

Interested in hearing from anyone that invests in the NYC metro area. Based on the notes below, does anyone have opinions on where to purchase?

I currently own and live in a 1br/1ba in condo Bushwick Brooklyn, but am looking into building out a portfolio of 2-4 unit homes anywhere in the NYC area. My current neighborhood isn't realistic. I've looked into out of state investing, and having properties far outside of driving distance doesn't appeal to me. My income from work is enough for me to feel comfortable with my lifestyle & build up savings. Cash flow for additional income is not a primary concern. I've decided my primary interest is in owning properties that at least break even and have solid appreciation in the NYC area.

My plan would be to put down 10-20% and live in one of the property's units for a year, while renting out my condo in Brooklyn furnished for 12-18 months. After the initial year I would rent out my unit in the new property, and return to my home in BK. Ideally I would continue to purchase additional properties in the same area as the rental in the coming years. 

My criteria for where to purchase is pretty flexible:

- No more than 1 hour to get into Manhattan by transit (ideally 30-45).

- Can be anywhere in Brooklyn, Queens, Bronx, Staten Island, Westchester, New Jersey, Long Island.

- Ideally 3-4 units that break even when accounting for taxes, maintenance, saving for major repairs.

- $500-$900k purchase price

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Mark S. FisherBusiness Member
Lender · Bronx, NY · Member since 2016 · 23 posts · 11 votes
4y

@Paul 

@Paul Walker 15% Down Payment is required for a 2-Family Home and 20% down for a 3-4 Family. You can do as little at 3.5% Down Using an FHA Loan but you will likely have an issue with passing the FHA Self-Sufficiency Test is you go over 800k.

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  • Alex Horelick
    Real Estate Agent · Westchester County, NY · Member since 2017 · 73 posts · 48 votes
    4y

    Hey Paul!


    I’m a local agent and work with a lot of BP’ers in/from the city who have this plan. Would you consider CT? I saw you didn’t have it listed there but lower Fairfield county can check all your boxes and has lower price points and higher cashflow than many NY and NJ areas. I suggest looking closely at CT in addition if it can work for you!

    1Reply
  • Paul Walker
    OP
    New to Real Estate · New York, NY · Member since 2021 · 8 posts · 15 votes
    4y
    Quote from @Alex Horelick:

    Hey Paul!


    I’m a local agent and work with a lot of BP’ers in/from the city who have this plan. Would you consider CT? I saw you didn’t have it listed there but lower Fairfield county can check all your boxes and has lower price points and higher cashflow than many NY and NJ areas. I suggest looking closely at CT in addition if it can work for you!

    Hi Alex - certainly open to that as well. Are there any specific towns/zip codes your clients work within?
    1Reply
  • Jacob Mennear
    Investor · Member since 2021 · 3 posts · 2 votes
    4y

    Hey Paul,

    Would love to connect in person. My family is relocating from Charlotte to Queens in 2 weeks. One market we're looking into is Hicksville on Long Island. A couple duplexes (and SFR with househacking capabilities) are currently on market. With LIRR access into Manhattan, could be a place to expand within your budget.

    2Reply
  • Alex Horelick
    Real Estate Agent · Westchester County, NY · Member since 2017 · 73 posts · 48 votes
    4y
    Quote from @Paul Walker:
    Quote from @Alex Horelick:

    Hey Paul!


    I’m a local agent and work with a lot of BP’ers in/from the city who have this plan. Would you consider CT? I saw you didn’t have it listed there but lower Fairfield county can check all your boxes and has lower price points and higher cashflow than many NY and NJ areas. I suggest looking closely at CT in addition if it can work for you!

    Hi Alex - certainly open to that as well. Are there any specific towns/zip codes your clients work within?

     There are a few different options around here depending on what your goals are. Most house hackers I've worked with around here want to be in a C+ class or better neighborhood and have some good appreciation potential with close access to NYC via metro-north. Depending on what your commuting needs are you can certainly look in Westchester and get a "break even" deal with that budget and you can get some more positive cashflow in places like Stamford or Norwalk, CT that are a similar commuting distance. CT prices are a little more affordable but the biggest thing is the taxes in CT are much lower and make for better cashflow. My first property was a house hack in Sleepy Hollow, NY that I still own but I've helped clients all over this area and can certainly help answer questions for you!

    1Reply
  • Brian KittnerPro Member
    Investor · Hawthorne, NJ · Member since 2017 · 31 posts · 12 votes
    4y

    @Paul Walker are you looking to break even while occupying one of the units? I am currently looking at 2-3 units in North Jersey and don't think that is an easy ask in that market in the current climate. I, however, will not be renting rooms in my unit and that might be something you're able to do.

    Best of luck!

    2Reply
  • Charles J. K.
    Lender · Hollywood, FL · Member since 2016 · 15 posts · 9 votes
    4y

    @Paul Walker I'm interested to know why you plan to occupy one of the units if you are willing to put down up to 20%. Typically I see people looking to do this with lower down-payment residential loans, however there are 80-85 LTV loan options out there for investors which wouldn't require you residing in the property and moving back and forth (Unless you are looking to specifically bring in more cashflow from the condo). I also think that a $900k purchase price can provide some opportunity for you within the city. I have a duplex in The Bronx that started as a break-even deal and has both appreciated (still sits within your price range) and increased to positive cashflow since purchasing it in 2017.

    2Reply
  • Mark S. FisherBusiness Member
    Lender · Bronx, NY · Member since 2016 · 23 posts · 11 votes
    4y

    @Paul 

    @Paul Walker 15% Down Payment is required for a 2-Family Home and 20% down for a 3-4 Family. You can do as little at 3.5% Down Using an FHA Loan but you will likely have an issue with passing the FHA Self-Sufficiency Test is you go over 800k.

    3Reply
  • Daniel VineisPro Member
    Real Estate Agent · north jersey · Member since 2018 · 49 posts · 45 votes
    4y

    Hey @Paul Walker I’m a agent/investor in New Jersey. One of my favorite areas is Bloomfield, Montclair and some of the surrounding areas. They are great solid towns with good schools and down towns. They are fun to live in and you can definitely draw even on a good portion of properties. It’s about 30 minutes by train to get into Manhattan from there. There are a lot of small multis in the area and with your price range you would be able to afford 90% of any  2-4 unit that comes on the market. Let’s connect and I can explain the demographics of the area in more detail and see if it’s a good fit for what your trying to do.

    1Reply
  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    4y

    @Paul Walker !

    Great advice on here so far!

    Westchester and Long Island are great options since many submarkets in these counties appeal to long-term tenants. The school districts and lifestyle can be more appealing to families when compared to NYC. The downside here is that property taxes are sometimes 2-3x that of properties in the boroughs.

    If searching in Brooklyn and Queens, I believe the best value will be in the South - Southeast sections of both boroughs. Properties here tend to have larger lot sizes, larger apartments, more parking and more storage space when compared with other parts of BK & Queens. They also have more multi-family inventory under $1M than most sections of Northern - Central BK & Queens. 

    A bonus to look for would be properties with accessory units. We've helped BP clients close on properties with garden-level units where they've been able to pay as little as $500/month in mortgage and expenses with as low as 5% down payment. 

    Best of luck to you on your search!

    Abel

    REbuild Team - eXp Realty5234 Reviews
    WebsiteView Page
    2Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    4y

    Hey @Paul Walker - congrats on wanting to expand your investment portfolio! I'm both an agent & investor and grew up in Queens. 

    If you're wanting something close to the city for your house-hacking purposes, and also stable for when you eventually rent out your house-hacked unit -- I recommend what @Abel Curiel mentioned regarding South/Southeast sections. 

    In Queens county you can find multifamily properties within your budget range (and below) that are in C+ to B areas. One area that's been steadily improving is Elmont (near where the new UBS arena has been built). 

    Shoot me a DM if you want to chat, happy to point you in the right direction. 

    1Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    4y

    Hi @Paul Walker house hacking has been a great strategy for me and my wife. We achieve financial freedom in a relative short period of time just by repeating the strategies of other successful investors. North Jersey has been great for us and our clients. Equity has been huge, increased rents have been life changing the best part is there are still plenty of deals to be made. We just went under contract on a property last week for a client that will hit the 1% rule. $550k purchase will bring in close to 6k in rent with about 40k worth of renovations best part is my clients is using 5% down conventional mortgages with no PMI and very low closing costs. NJ is great market, I'm not sure this is for you but I host a monthly REI meetup. Most of the 40-70 guest that attend each month own or are in the process of owning a multifamily property. Great place to be around like minded people and learn.

    973-975-3895
    House Hacking New Jersey563 Reviews
    WebsiteView Page
    3Reply
  • Bryant Herreros
    Real Estate Agent · Member since 2022 · 7 posts · 3 votes
    4y

    Hey @Paul Walker!

     Staten Island would be the perfect place for you. 45 minute drive to Manhattan, 20 minute drive to New Jersey and the perfect budget for a MINT home that will be sure to gain some equity! 

    2Reply
  • Louis Marciano
    Member since 2022 · 4 posts · 5 votes
    4y

    I’m looking for something similar

    1Reply
  • Michael Cavitolo
    New to Real Estate · Staten Island, NY · Member since 2021 · 26 posts · 26 votes
    4y
    Quote from @Bryant Herreros:

    Hey @Paul Walker!

     Staten Island would be the perfect place for you. 45 minute drive to Manhattan, 20 minute drive to New Jersey and the perfect budget for a MINT home that will be sure to gain some equity! 


     Im in Staten Island as well, everything is so expensive, I'm having trouble figuring out which way I should go myself.. Duplex, Single family, condo or townhome.. 

    1Reply
  • Bryant Herreros
    Real Estate Agent · Member since 2022 · 7 posts · 3 votes
    4y
    Quote from @Michael Cavitolo:
    Quote from @Bryant Herreros:

    Hey @Paul Walker!

     Staten Island would be the perfect place for you. 45 minute drive to Manhattan, 20 minute drive to New Jersey and the perfect budget for a MINT home that will be sure to gain some equity! 


     Im in Staten Island as well, everything is so expensive, I'm having trouble figuring out which way I should go myself.. Duplex, Single family, condo or townhome.. 


    Hey Michael, 

    I'm sure you already know Things in New York City can get a bit pricey, but the condition and price range of property's compared Brooklyn, Queens, Manhattan, and the Bronx is almost unmatched. I'm not sure if you're working with an agent yet, or have access to the homes on the MLS but id love to give you a hand in finding the property you're looking for (no pressure of course) If you have a minute shoot me a text or call 646-251-7743

    1Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    4y

    @Michael Cavitolo Duplex's may be expensive upfront but long term all expenses get put onto the tenants. At the end of the day a single family all expenses will be put on you, very tough to cash flow (unless rent by room and property itself makes sense). Right now I am in a spot where my duplexes are covering the expenses of my primary and then some. If you are committed to financial freedom house hacking is your unfair advantage in the greater NYC market. MFR is a great way to go with the expectation of a rent by room strategy for single family homes.

    973-975-3895
    House Hacking New Jersey563 Reviews
    WebsiteView Page
    1Reply
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