Tips on house hacking in NY?

[Raymond Santos]

Anyone has any tips on house hacking in NY? I currently live in the Bronx. Looking to start investing in real estate, any advice from investor in NY?

[Jon C.]

Raymond,

While I have never invested in the Bronx, I did live in the Bronx for part of my childhood and still visit family and friends that live and work there. The Bronx provides unique opportunities if you buy in the right areas. I would advise that you look at what areas are hot for housing right now, and possibly go one subway stop further to get ahead of the curve. Most of the developers I represent in NYC and most of my multifamily investments are targeted at the ripple effect - looking at where the growth is headed over the next 12-24 months and buying there now. Stay away from rent-regulated housing, which is typically over 4 units. If you are buying a 2-3 family market rate property in the right area, you will see a bigger equity growth upside in the next few years. I don't think you need me to tell you how litigious the Bronx is. Make sure you do proper credit checks with your prospective tenants and always treat them as tenants. You're running a business. the tenants are NOT your friends. Go and get your bank pre-qualification now, so you know what your realistic budget is. If it's your primary residence as well, it will be easier to qualify. Lastly, while the "Confident Real Estate" channel on YouTube does not cover house hacking, and tends to stick to more complex, next level investing strategies, you should start getting familiar with what you need to know as you grow your portfolio. Years from now you'll hopefully look back and remember this first purchase as a positive experience and learning lesson.

Good Luck!