Buy or rent in New York

[Enzo Pazos]

I currently live in NYC where prices are not low. I am lucky enough to be living almost for free. My wife is moving to the city in May and we need to start looking for a place to stay in a few months.

My question is, is it better to rent (at least $1,500 a month) and start our REI journey out of state? Or is it better to buy something in NYC with a FHA loan where the mortgage would be similar to our future monthly rent?

After a few years, if we decide to move out of the city, we can always rent it out. But I’m not sure what the chances are that that property will at least break even.

We REALLY want to start investing this summer but we just feel that paying rent every month in NYC will slow us down. The only reason why we do not move to a different city is because we can make much more money here. Although, we are not planning to stay here forever. It’s temporary.

What are your thoughts? Thank you!!

[Scott Wolf]

@Enzo Pazos I don't know where in NYC you'll be looking, but if it's a co-op(or even some condos), you probably won't be able to use an FHA 3.5% loan. I'd speak with a realtor who specializes in the are you're looking at.

That being said, you can buy a 2-4 family home with a FHA loan.

Good luck!