Multi-family investment in NYC

[Lux Bai]

Hi,

My name is Lux and am new to RE. I’d love some advice on our situation. My boyfriend and I are very interested in the idea of investing in a multi-family in Brooklyn or near NYC. We are in our late 20s and are currently renting an apartment in Manhattan. We haven’t owned any property yet but I’m fairly familiar with Brooklyn as I’ve lived in quite a few of those buildings. We have a gross income of 290k combined and about 500k cash and stocks. We’d like to see the possibilities of RE investment this year. 

My idea is to buy a multi-family building in other boroughs (under 1.2million), renovate it, and then have rent cover the mortgage, insurance, management, etc, and bring in a couple thousand dollars every month. 

We’re not sure if it makes sense, how much to invest, how risky it is, if it’s even possible in today’s times. 

Would love to know your opinions!!

[Joshua Kleiman]

Hey Lux - that is amazing to hear! 

I'm also new to REI (based in NYC!) and looking into multi-families in PA. I'm not sure how much research you have done yet but NYC is pretty expensive so assuming you are looking at small 2-4 multi-family units. If that is the case you will have to put 25% down, cover closing costs, and have 6 months of mortgage payments leftover in the bank (unless you live in the unit and "house hack" which may be the best option from what I've read on BP). Again, I'm still learning but this is what I've gathered from conversations and blogs I've read.

I'm happy to chat, compare notes, and share what I've learned so far.

A couple of useful links below that I've used to educate myself: 

Blog on multi-family investing: https://www.biggerpockets.com/renewsblog/2013/04/09/how-to-buy-a-small-multifamily-property/

Post with Ben Leybovich that I found super helpful and his 13 steps (recommend hearing the podcast as well): https://www.biggerpockets.com/renewsblog/2014/03/13/investing-multifamily-ben-leybovich/

13 steps of multi-family investing eBook (free if Prime member): https://read.amazon.com/?asin=B00EP6XMCS

Info on mortgages: https://themortgagereports.com/29052/what-to-look-for-in-a-mortgage-company

GOOD LUCK!