House Hacking (FHA) in NYC or OOS investing w. turnkey companies

[Alejandro Obando]

New Investor, trying to figure out what strategy I could utilize for my very first investment. My goal is to invest in a property that will generate roughly $300/ month in cash flow within the first year. currently saving capital for when I do make the first purchase, I am about 5K away from hitting the 3.5% down on an FHA property in NYC, Since I live in a very expensive market (NYC) it is challenging finding a property that will generate any cash flow at all.

I've been researching, reading and networking for the past 6 months 

Using sites such as "Redfin, Zillow, Trulia, Craigslist, Etc. to find properties and using the BP calculator to analyze properties, 

(goal is to analyze 100 properties by the end of the first quarter in order to truly understand how to analyze properties and cashflow).

I have no experience with OOS investing but I do see the much lower entry point with investing OOS. still not sure whether OOS investing is the right strategy since I will be relying on other people's actions/ commitment to managing the property.   

Any insight on other markets to look into or other strategies to use will be greatly appreciated. 

Thank You 

Alejandro Obando 

[Abel Curiel]

Originally posted by @Alejandro Obando:

New Investor, trying to figure out what strategy I could utilize for my very first investment. My goal is to invest in a property that will generate roughly $300/ month in cash flow within the first year. currently saving capital for when I do make the first purchase, I am about 5K away from hitting the 3.5% down on an FHA property in NYC, Since I live in a very expensive market (NYC) it is challenging finding a property that will generate any cash flow at all.

I've been researching, reading and networking for the past 6 months 

Using sites such as "Redfin, Zillow, Trulia, Craigslist, Etc. to find properties and using the BP calculator to analyze properties, 

(goal is to analyze 100 properties by the end of the first quarter in order to truly understand how to analyze properties and cashflow).

I have no experience with OOS investing but I do see the much lower entry point with investing OOS. still not sure whether OOS investing is the right strategy since I will be relying on other people's actions/ commitment to managing the property.   

Any insight on other markets to look into or other strategies to use will be greatly appreciated. 

Thank You 

Alejandro Obando 

Hey Alejandro,

Its great to hear that you're getting the ball rolling with deal analysis and goal setting!

I totally agree with what you said about cashflowing in NYC, especially with FHA.

That being said, house-hacking in Queens, Brooklyn, the Bronx, and Long Island has worked out very well for folks with FHA loans. People who currently pay ~$1,700 -2,000/month on rent can get into a multifamily property and pay almost half that amount for mortgage after collecting rental income from their tenants. All with just 3.5-5% down.

On the other hand, investing upstate or OOS can get you in the game at a significantly lower price point and give you a better shot at cash-flowing. A 20% down payment in markets outside of NYC is very close to a 5% down payment in the city. A market to check out is the capital region upstate NY. @Nate Monson is a rockstar up there and can give you more insight on the area.

No matter which route you choose, I'm sure it will align with your goals and get you to where you want to be.

Best of luck to you moving forward!

Abel