New grad 22yo, $200k starting salary, how should I do my first house hack near NYC

[Alex Kiot]

Hey guys, I just graduated college with a degree in computer science, and when I start work this September my salary will be around $200k. I recognize that having a salary like this early on in my career is a huge opportunity and want to maximize this chance to build my wealth through real estate. While I have already been contributing to my Roth IRA and 401k, once I start working, I additionally intend to allocate a significant portion of my income towards real estate.

I'm seeking advice on the best approach to get started with real estate as soon as reasonably possible. My current (probably naive) plan involves living at home for 6-12 months, saving a large portion of my income, and then searching for a multifamily property within commuting distance of NYC. Then I'd house hack with an FHA loan. However, I'm unsure if this is the optimal approach. Also, I'm aware that finding a good house hack near NYC is a lot easier said than done.

Does this sound like a good approach to get started with real estate, or should I do something else? If so, where within a 1 hour commute of NYC, would be the best place to house hack?

Also, how expensive should my first house hack be - is it better to stay at home longer so that I can save more and afford a more expensive property? Or should I just get into my first property as soon as possible. If I put 3.5% down on $1m property it’s only $35k which I can save in less than 6 months, but I’m not sure if that’s too expensive for my first property. 


In addition, my job is expected to require 35-45 hours per week, so I can allocate as much time as necessary to real estate outside of work. I know this might come off as a humblebrag, but I'm genuinely seeking guidance as a real estate newbie on where to begin and appreciate any insights you can provide.

[Abbey Humphreys]

Hey Alex! This is definitely a great opportunity and kudus to you for getting started early. I would save, save, save while you can! Living at home in order to save money is wise, and there are quite a few options near NYC for house hacking whenever the time is right.  

For instance, Jersey City offers convenient access to NYC via the PATH train or ferry. It has a growing real estate market, various neighborhoods, and amenities. You could also consider 
Hoboken, which has a lively atmosphere, a variety of housing options, and easy access to NYC through public transportation. Yonkers, Queen, and even Stamford, CT, are all good options, as well.