House Hacking to start out in the investment game

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House Hacking to start out in the investment game

Dana HagansPro Member
New to Real Estate · NY · Member since 2023 · 24 posts · 23 votes

Living in Brooklyn, New York has been an amazing experience for me. I enjoy the diverse culture and being able to take advantage of all the city offers. Although I am not looking to invest into real estate in New York, if anyone can share their personal experiences on how they have successfully invested into a triplex or other multi-family properties that would definitely change my mind. Overall living in Brooklyn has been great and although it may seem daunting at times, investing into real estate here when done right could provide huge returns down the line which makes it worth considering despite any initial hesitations one might have about doing so!

I am particularly interested in house hacking as a way to get started with real estate investing and would love any recommendations on areas that are good for multifamily investments. It is important for me to find an area where there is potential growth so that I can maximize my return on investment but also be able to maintain reasonable rental prices due its location near amenities such as public transportation, restaurants, parks, etc. Would anyone have any recommendations on areas out of state that's good for multifamily?

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
3y

The good part about investing where you are is the massive upswings of appreciation. I'd try that first before going to another state. The best way to get in is house hacking a 2-4 unit and utilizing FHA(3.5% down). The prices there are expensive and it is competitive. If you do look OOS you'll have to at least put 20-25% down for MF(unless you move to the state and house hack). There are many markets, Midwest is the popular trend. Happy to chat on KC, it's a great Midwest market

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    3y

    The good part about investing where you are is the massive upswings of appreciation. I'd try that first before going to another state. The best way to get in is house hacking a 2-4 unit and utilizing FHA(3.5% down). The prices there are expensive and it is competitive. If you do look OOS you'll have to at least put 20-25% down for MF(unless you move to the state and house hack). There are many markets, Midwest is the popular trend. Happy to chat on KC, it's a great Midwest market

    3Reply
  • Tyler Radford
    Realtor · Long Beach, NY · Member since 2019 · 31 posts · 9 votes
    3y

    Hi Dana. I'm just one data point, but I have house hacked in Queens in a two-family and am doing it again now in Long Beach on Long Island. You are right in that there can be significant returns in NYC, but you need a bit of patience to see them. A lot of it depends on where you really want to be over say the next 3-5 years. There are definitely hack-able two and three-family properties in Brooklyn or Queens. Depending on your price point they may need work put into them. On the other hand, if your work gives you the freedom to be remote or move out of state, maybe that makes more sense. I'm of the opinion you should figure out a couple places that make you happy, where you have connections, family, friends or something that attracts you, then figure out how to make real estate work in that place. Feel free to message me if I can help you out in the NYC market.

    2Reply
  • Steve Olivier C.
    Investor · NJ · Member since 2015 · 20 posts · 12 votes
    3y

    Hi Dana, 

    Given what you mentioned you are looking for, you may consider checking some feed selection as illustrated in the sample screenshot attached here from reinvestmentfeed.com

    Good luck with your search!

    0Reply
  • Jimmy Bostic
    Investor · Columbus, OH · Member since 2023 · 73 posts · 82 votes
    3y

    @Dana Hagans I think that house hacking is a great entry point for REI. But to house hack by definition is to live in the home, which is a bit confusing since you said you don't want to invest in New York, yet you live there. So perhaps you plan on moving?

    If not, you can use a different strategy for oos investing. If you wanted to invest oos, or even move, the midwest has good markets. Ohio, particularly Columbus, has a good multifamily market. 

    2Reply
  • Dana HagansPro Member
    OP
    New to Real Estate · NY · Member since 2023 · 24 posts · 23 votes
    3y
    Quote from @Jimmy Bostic:

    @Dana Hagans I think that house hacking is a great entry point for REI. But to house hack by definition is to live in the home, which is a bit confusing since you said you don't want to invest in New York, yet you live there. So perhaps you plan on moving?

    If not, you can use a different strategy for oos investing. If you wanted to invest oos, or even move, the midwest has good markets. Ohio, particularly Columbus, has a good multifamily market. 


     Yes I do plan on moving. Pardon me for not mentioning that part. 

    1Reply
  • Dana HagansPro Member
    OP
    New to Real Estate · NY · Member since 2023 · 24 posts · 23 votes
    3y
    Quote from @Caleb Brown:

    The good part about investing where you are is the massive upswings of appreciation. I'd try that first before going to another state. The best way to get in is house hacking a 2-4 unit and utilizing FHA(3.5% down). The prices there are expensive and it is competitive. If you do look OOS you'll have to at least put 20-25% down for MF(unless you move to the state and house hack). There are many markets, Midwest is the popular trend. Happy to chat on KC, it's a great Midwest market

    I would love to chat more about KC. Midwest has been at the top of my list. 
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Dana Hagans:

    Living in Brooklyn, New York has been an amazing experience for me. I enjoy the diverse culture and being able to take advantage of all the city offers. Although I am not looking to invest into real estate in New York, if anyone can share their personal experiences on how they have successfully invested into a triplex or other multi-family properties that would definitely change my mind. Overall living in Brooklyn has been great and although it may seem daunting at times, investing into real estate here when done right could provide huge returns down the line which makes it worth considering despite any initial hesitations one might have about doing so!

    I am particularly interested in house hacking as a way to get started with real estate investing and would love any recommendations on areas that are good for multifamily investments. It is important for me to find an area where there is potential growth so that I can maximize my return on investment but also be able to maintain reasonable rental prices due its location near amenities such as public transportation, restaurants, parks, etc. Would anyone have any recommendations on areas out of state that's good for multifamily?

    Hey Dana, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    1Reply
  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    3y

    @Dana Hagans hello Dana!

    OOS investing is a great option for getting into a low-price-point, landlord-friendly market with less up front capital investment. Mid-west and some Southern markets might be worth looking into i.e. Ohio, The Carolinas, FL, TN to name a few.

    Regarding house-hacking in NYC. There is no place like this city so I totally understand the appeal to househack here despite the fact we aren’t a ‘cashflow’ market. I highly recommend checking out the BP calculators which will help you understand your monthly commitment for any potential NYC househack property you invest in.

    The rental property calculator even gives you a glimpse into the future performance of your potential deal with respect to mortgage principle pay-down, monthly/annual appreciation, estimate property value, monthly cashflow projections after you move out of the property and more!

    Running these analyses will help you decide whether it makes sense to continue renting in NYC & invest OOS or househack locally.

    I am bullish on Central-Eastern Brooklyn - i.e. Flatbush, East Flatbush, Ocean Hill, Crown Heights, Bushwick, Cypress Hills.

    Central and South Queens areas may offer more options below $1.1M than Brooklyn. Many first-time househackers target areas such as Richmond Hill, Ozone Park, Woodhaven, Glendale, Jamaica, and other surrounding neighborhoods.

    All the best to you on your search!

    Abel

    REbuild Team - eXp Realty5234 Reviews
    WebsiteView Page
    2Reply
  • Dana HagansPro Member
    OP
    New to Real Estate · NY · Member since 2023 · 24 posts · 23 votes
    3y

    @Jimmy Lieu I am interested in exploring the market opportunities in Columbus, Ohio. I have heard many positive reviews of this market and would like to take a deeper look into what it has to offer. I believe there are great potentials for growth within this area and would love to weigh out my options before making any decisions or investments.

    1Reply
  • Simon Ashbaugh
    Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    3y
    Quote from @Dana Hagans:

    Living in Brooklyn, New York has been an amazing experience for me. I enjoy the diverse culture and being able to take advantage of all the city offers. Although I am not looking to invest into real estate in New York, if anyone can share their personal experiences on how they have successfully invested into a triplex or other multi-family properties that would definitely change my mind. Overall living in Brooklyn has been great and although it may seem daunting at times, investing into real estate here when done right could provide huge returns down the line which makes it worth considering despite any initial hesitations one might have about doing so!

    I am particularly interested in house hacking as a way to get started with real estate investing and would love any recommendations on areas that are good for multifamily investments. It is important for me to find an area where there is potential growth so that I can maximize my return on investment but also be able to maintain reasonable rental prices due its location near amenities such as public transportation, restaurants, parks, etc. Would anyone have any recommendations on areas out of state that's good for multifamily?


     I would definitely recommend you look into Columbus Ohio! Rents are strong and the amount of job opportunities is growing quickly! We have tones of big corporations investing billions here, and real estate is appreciating quickly! I assume you can work remotely by your willingness to move?

    1Reply
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