Debating between dream home or house hack in city?

Question

Hi everyone. I am debating between buying a single family property where I really want to live on long island (convenience, close to friends/family, location I like) vs buying a multifamily in an area in a NYC borough (Bronx) for the same price, but an area that I would not want to live (travel to work is worse etc). I always have wanted to buy a rental property and the multi family seems like the best way to break into real estate. But if we were to buy where I want to end up on long island, and save up for another multi family down the road, would that hinder my goal to buy a multi family? My question is, is it better off sacrificing early on and house hacking in a multi family in an area that isn't my first choice, or should I buy the single family home I love, and save up for a multi family as my next purchase.  Nothing against the City/Bronx, but I grew up on the island and want to live here and it is easier to commute for work. But for my price range, the only multi families I can swing would be in the Bronx, maybe some areas of Queens and BK. NYC real estate is tough. Thanks !

Lauren Norman · Answer

House hack first! Once you move out to LI in a SFH you won't want to house hack haha!

Ceasar Rosas · Answer

@Scott Sankhi

I'm in Throggs Neck.

Ceasar Rosas · Answer

@Michael Charles

There are 275 Active Multi family listings in the Bronx right now. 537 if you include contracted listings. Out of the 275 Active only 22 are at $450k and under. Most of them are not in ideal neighborhoods. I don't want to tell you to rule it out, but I'd like to be able to help with giving you the info you need to make up your own mind. To buy a multi in the Bronx, you must really want to buy a multi in the Bronx. The potential is there, even if you have to pay more. And everyone is expecting the Bronx to be the next Brooklyn and it sure will continue to appreciate. May we take a dip? Sure, but it will continue to come back and each time stronger.

Michael Charles · Answer

Thanks Cesar. Would definitely be using a mortgage so should I cross out Bronx? Ideally would love to be under $500k and have the rental income, wouldn't mind something that needs some TLC/repairs as well, as long as it is in a decent neighborhood.

Ceasar Rosas · Answer

@Michael Charles

I Bought my 1st 2 family in the Bronx in 2013. Great location. I am now looking at purchasing a single family by the end of this year in a place that I want to move. I could have probably done it sooner, but I got into flipping in Pa and am looking into more buy and holds out of state. $450k in the Bronx for a multi is actually a tough budget. You would need to be in the $500's nowadays unless you're buying cash. Your family also absolutely must be on board. There are pros and cons to both, but it really will depend on your goals and how fast you want to get there. I've seen people househack and make it work for them and I've also seen people, buy a primary residence, at a good price, maybe something that needs work and force appreciation. Then they use a HELOC and go purchase an investment.

Michael Charles · Answer

My budget is up to 450k. There are nice neighborhoods on Long Island I can afford in that range for a starter home. But I could get a two family in Bronx in that range I have seen some properties for sale online. Would that range get me into an OK part of Bronx? Or is it better off to move to LI and save up more ?