A bit of a Dilemma

[Jared Leggett]

Good evening everyone this is going to be a little long so I hope I am not a bother! I've decided to take the first few steps in my real estate journey but have already run into a bit of a dilemma. I have some solutions in mind but also want to see what the pros may have to say!! I'm super interested in purchasing my first house hack before July of 2025. I just recently got hired for DSNY (New York city department of sanitation) my base pay is 43,000 with alot of overtime opportunities so I do not see myself making any less than 60,000 for my first year. I am 22 Y/O with no bills aside from my car note/car insurance and my EZ pass tolls. I most definetely do not have the funds to hop into real estate just yet which is why I set the goal of July. I've been educating myself daily on the forums. Listening to podcasts and reading quite a few books. Now where my dilemma comes in. Working for DSNY we have residency limitations. We can only reside within the five boroughs, Suffolk county,Nassau county, westchester county, Orange County, Putnam county, Rockland county and pretty much any other county that is directly outside the five boroughs within NY. I've done some research on majority of these places and maybe I'm wrong, but the median price points of homes here just seem way to high and unrealistic. I started looking a bit into Rochester which has a way lower price point for multi families and single families but obviously I would be unable to house hack as it is 5 hours away from NYC which I will not be commuting lol. What do you guys think I should do. Am I overlooking more affordable markets that are close by that I CAN house hack in? Should I re evaluate what strategy I should use and maybe look further out in places such as Rochester and BRRR properties out there

[Matthew Paul]

Move out of New York would be my first thought .   NYC is an expensive market .

[Preston Garcia]

Hey, if you ever want to know more about the market over here in Rochester, feel free to reach out!🤙🏽

[Jared Leggett]

Quote from @Matthew Paul:

Move out of New York would be my first thought .   NYC is an expensive market .

 haha easier said than done but I feel you!!

[Jared Leggett]

Quote from @Preston Garcia:

Hey, if you ever want to know more about the market over here in Rochester, feel free to reach out!🤙🏽

 Will do, Thank you!

[Nicholas L.]

@Jared Leggett

i know this isn't the answer you want but here goes - save up enough until you can house hack where you live

[Jared Leggett]

Quote from @Nicholas L.:

@Jared Leggett

i know this isn't the answer you want but here goes - save up enough until you can house hack where you live

 Yeah definitely one of the easier routes I can take :/ Thank you!

[Bruce Woodruff]

If you are limited to those areas for residency, and you choose to keep that job, you are going to have to either a) wait for a couple years and save up a heftier down-payment, b) change your strategy like you said and go for houses further away (do flips, STR or BRRR).

Or, if you are sold on the house-hack concept, at some point you might have to look at a different job that allows you to move where house-hacking will work....

[Julia Lyrberg]

You're off to a great start! With your residency limits, maybe check out more affordable spots in Orange, Rockland, or Westchester counties. Smaller multi-families like duplexes could make house hacking more doable. If that's still a stretch, BRRRR properties in places like Rochester could be a solid backup plan. Keep learning and stay open to different strategies — you're already ahead of the game!

[Jared Leggett]

Quote from @Bruce Woodruff:

If you are limited to those areas for residency, and you choose to keep that job, you are going to have to either a) wait for a couple years and save up a heftier down-payment, b) change your strategy like you said and go for houses further away (do flips, STR or BRRR).

Or, if you are sold on the house-hack concept, at some point you might have to look at a different job that allows you to move where house-hacking will work....

yes 100 percent. Ive already started looking further out to do BRRR/Flips as this is one of those jobs I cannot really afford to lose, having it will help me a lot in the long run. Thank you Bruce!

[Jared Leggett]

Quote from @Julia Lyrberg:

You're off to a great start! With your residency limits, maybe check out more affordable spots in Orange, Rockland, or Westchester counties. Smaller multi-families like duplexes could make house hacking more doable. If that's still a stretch, BRRRR properties in places like Rochester could be a solid backup plan. Keep learning and stay open to different strategies — you're already ahead of the game!

Thank you so much Julia! I will keep my eyes open on those counties to see if I can find anything more affordable. But just like you said I think a BRRRR out in Rochester seems very doable so the bulk of my research will definitely be focused there. Thanks again.

[Corey Conklin]

I know that moving away from home isn't what anyone really wants to do but in your situation it would absolutely change your life, financially (and for the better) if you left.

Again, I don't know your situation but I can tell you that a sanitation worker in a small town in Kansas (town of about 12,000 people) makes more money than you do living in NYC. The cost of living is probably 1/10 that if NYC too. I'm not saying you need to move to small town America but I wanted to give you a comparison.

The only way I can see you staying in NYC and looking to invest in real estate is to find a way to make more money. Learn a valuable skill set that will allow you to make more money, therefore have more financial flexibility. This will cost time and money and can be just as difficult as moving away from home.

If you want to make it you'll need to do some hard things and make some hard decisions. It's up to you to decide what "Hard" you are going to choose.

[Abel Curiel]

Hello @Jared Leggett,

I agree with @Nicholas L.

Westchester and Suffolk Counties have median multifamily (2-4 unit) pricepoints that are about $200K below what you'd find within the boroughs (excluding the Bronx & S.I.).

That said, it is possible to househack in these markets with ~ $50K. The more you have saved, the more options you'll have.

The road won't be easy, but it will be rewarding in the long term. Rents and property values rise pretty steadily in our market at a rate about 2-3X the national average. Cashflow may not be immediate but if you run your #s, you'll be able to see how long it'll take to cashflow and what kind of equity you can expect to build within your first few years of house-hacking.

I began househacking in 2010 while working an NYC job (Health + Hospitals Corp., formerly HHC) earning a base salary and overtime pay that are nearly identical to what you posted here. I jumped in without knowing what I was doing and am glad I did it as soon as I was able to!

Use this time from now until July to really pin point some target areas and property types. Research sold properties to see if the #s would make sense given your projected down payment amount. Lastly, don't wait too long but don't rush! 

All the best!

Abel

[Jared Leggett]

Quote from @Corey Conklin:

I know that moving away from home isn't what anyone really wants to do but in your situation it would absolutely change your life, financially (and for the better) if you left.

Again, I don't know your situation but I can tell you that a sanitation worker in a small town in Kansas (town of about 12,000 people) makes more money than you do living in NYC. The cost of living is probably 1/10 that if NYC too. I'm not saying you need to move to small town America but I wanted to give you a comparison.

The only way I can see you staying in NYC and looking to invest in real estate is to find a way to make more money. Learn a valuable skill set that will allow you to make more money, therefore have more financial flexibility. This will cost time and money and can be just as difficult as moving away from home.

If you want to make it you'll need to do some hard things and make some hard decisions. It's up to you to decide what "Hard" you are going to choose.

 yes I definitely see that I'm going to have to make some difficult decisions, just not sure what I'm willing to sacrifice. There are so many different routes to real estate that I can take but I cannot tell which would be the best for me. Thank you for the insight Corey, definitely gave me some things to think about!

[Jared Leggett]

Good Evening @Abel Curiel, I'll for sure dig a bit deeper into Suffolk and Westchester in my mind I did not want to wait that long to save up $50k, but maybe it is the smarter/safer move to be patient so I can have a strong basis for my portfolio. It is so great to hear from someone with a similar start in one of the five boroughs too! Gives me some hope. Thank you!

[Corey Conklin]

Quote from @Jared Leggett:

Quote from @Corey Conklin:

I know that moving away from home isn't what anyone really wants to do but in your situation it would absolutely change your life, financially (and for the better) if you left.

Again, I don't know your situation but I can tell you that a sanitation worker in a small town in Kansas (town of about 12,000 people) makes more money than you do living in NYC. The cost of living is probably 1/10 that if NYC too. I'm not saying you need to move to small town America but I wanted to give you a comparison.

The only way I can see you staying in NYC and looking to invest in real estate is to find a way to make more money. Learn a valuable skill set that will allow you to make more money, therefore have more financial flexibility. This will cost time and money and can be just as difficult as moving away from home.

If you want to make it you'll need to do some hard things and make some hard decisions. It's up to you to decide what "Hard" you are going to choose.

 yes I definitely see that I'm going to have to make some difficult decisions, just not sure what I'm willing to sacrifice. There are so many different routes to real estate that I can take but I cannot tell which would be the best for me. Thank you for the insight Corey, definitely gave me some things to think about!

 @Jared Leggett Also remember you're still really young. Stay patient, work hard, never stop learning and focus on helping other people. You do that and success will be inevitable. 

I wish you the best of luck on your journey!

[Bruce Woodruff]

Quote from @Jared Leggett:

I'm not sure why you 'cannot really afford to lose' this job. With all due respect, $43,000 is not that high for a salary nowadays. You can find that most places in the country. And you're stuck in NYC.
I would echo those that said move to a more reasoable place to live.

[Jared Leggett]

@Bruce Woodruff Haha yeah I probably should have been a little more clear. Im at base pay since I Just started, top pay at this job is at 5 years and we make 100k base pay, there are guys easily clearing 160k due to OT and other extra money functions. we also have a lot of opportunity to move up in position, Supervisors clear 230k like nothing so right now I'm not making much but long term this is one of the best city jobs to work. It also makes going and getting a loan way easier having this job under my belt.

[Jared Leggett]

@Corey Conklin Thank you so much for the kind words. I will do my best to make the most of this journey! Thank you again.

[Drago Stanimirovic]

Hi Jared,

Congrats on taking the first steps toward real estate investing. Given your residency restrictions and budget, focus on smaller multifamily properties in counties like Orange, Putnam, or parts of Rockland, where prices are more manageable. An FHA loan with 3.5% down could make house hacking feasible, especially if you find a property where rental income offsets much of the mortgage.

For now, prioritize house hacking close to work to keep things simple. Investing in places like Rochester and using strategies like BRRRR can be a great next step once you've built equity and stabilized your income. Saving until 2025 is a smart plan; use the time to build your down payment and research financing options.

If you need help running numbers or exploring financing, let me know. I’d be glad to assist.

Best,
Drago

[Jared Leggett]

@Drago Stanimirovic Thank you! I started looking more into Putnam county and I have definitely been seeing deals that are more realistic for me. I will for sure be reaching out if I have any questions, Thanks again!

[Wale Lawal]

@Jared Leggett

From my experience, house hacking in NYC is doable, but it often means looking into more affordable neighborhoods or smaller properties. Starting with an FHA loan on a property with separate utilities is a great way to begin. You can also leverage stable income for creative financing and explore BRRRR in markets like Rochester to build equity and cash flow. Keep your long-term goals in mind to steadily grow your income and savings through house hacking.

Good luck!

[Mohammed Rahman]

It sounds like you're off to a strong start with your real estate journey. Given your residency limits, the high prices in NYC and surrounding areas are a challenge, but there are still options in neighborhoods further out within your allowed range, like parts of Queens, Brooklyn, and the Bronx. These areas may offer more affordable multifamily properties that fit your house hacking goals.

Rochester and other distant markets could work for a BRRRR strategy, but it's a big commitment given the distance. I'd recommend focusing on affordable areas closer to the city for house hacking to keep things manageable. Let me know if you'd like help narrowing down specific neighborhood.

DM me or text me if you wanna chat!

[Jared Leggett]

@Austyn Shuman This was Awesome... so much great information here. I am for sure shifting my focus back to looking at properties in Rockland,Orange or Putnam as it seems to be the common census. I will 1000% be reaching out to you, sending you the college request right now so we can stay In touch! Thank you so much!

[Jared Leggett]

@Wale Lawal Thanks! I have Been looking more and have been seeing the more affordable side.

[Jared Leggett]

@Mohammed Rahman Queens and Brooklyn would be the absolute best because I work on the upper east side of Manhattan but I haven't seen any properties there that are affordable and in decent neighborhoods! I will most definitely be reaching out, maybe I'm overlooking something. Thank you!