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Updated about 4 years ago, 10/21/2020
How can I get started with RE if I'm in NYC?
I currently own a co-op in Brooklyn, NY, which I plan to put on the market, and then use some of the proceeds toward an investment property. (I also have a HELOC on my current apt, so may be able to leverage that.) Currently, my main focus is to learn, learn, learn.
My current main top question: how does one get started with RE Investing if living in NYC?
I read a lot about buying multi-family properties but I think those are outside my budget in the city. Additionally, most apartments here are co-ops and condos, which don't seem to lend themselves to the strategies I've been reading about. Maybe I'm wrong?
Should I not even consider NYC for my first time investment property and be looking elsewhere?
Looking for any tips and advice! Also, if you are in the NYC area, please reach out!
Hey, I am also from NYC. Have you thought about selling the Co-op , using that money to buy buy a multi family with a FHA loan?
Hi Rich - great suggestion, will definitely look into FHA loans. Thanks!
If you’re planning to stay in NYC then I would try to house hack a 2 family. The rental income will help cover some of your housing costs, and you'll get your feet wet as a landlord and be on site. But a lot will depend on your income/budget, etc.
Hi Jason - thanks for the suggestion re. house hacking. One challenge for me, I think, would be the initial cost of a 2-family in NYC, or whether I would be open to going with a property a bit outside of the city to get a lower price.
My current strategy that I'm considering came from listening to BiggerPockets Podcast 408: Full-Time Income on a Part-Time Schedule with Emma Powell in which she talks about how her first REI deal was being a hard-money lender using funds from a house sale, and that it was really powerful because she was effectively being paid to be mentored (by the experience lender)
With that in mind, I am considering focusing mainly on just selling my current property, and maybe doing a house hack if possible, but prioritizing selling, and being able to use the proceeds toward a lending deal.
@Anders R. what bank did you use for the HELOC? and do you know if they do HELOCS on investment properties?
Hi @Bernadeau C. - I used JP Morgan Chase. I am guessing they also do investment properties, but wouldn't know for sure.
@Anders Ramsay
If the high cost of entry in your local market is your barrier, and you have good income, credit, etc., have you considered out of state investing? The returns could be great in terms of cashflow and overall return in other markets. If you're making NYC wages, you could leverage them into other markets where SFH have ARVs of less than 120k and still cashflow anywhere from $100-300. I just flew down to a market this week to meet a new team and get the ball rolling. It seems like a big step, but managed in little bites its not so bad.
Feel free to reach out, I'm happy to share my experience.
Hi @Brady Potts - thanks so much for this advice. Out of state investing looks like it could be a good fit for me. I will definitely be reaching out to learn more about your experience. Thanks again!
@Anders R. I’m a real estate agent in the city and live here too, and invest outside of the city (upstate). Buying a multi fam and living in one unit is a great way to offset your costs, but I can’t imagine you’d be covering your costs. The opportunities are available to invest, just not directly around you! Definitely do some reading on this site on out of state investing as is doable. Feel free to ask me any questions as well.
Hi @Brandon Cohen - thanks for the advice. Yes, looks like out of state investing might be the way to go. For now, going to focus on educating myself about that strategy. Thanks again.
You should read the Long‑Distance Real Estate Investing by David Greene. I'm also from nyc and properties here are just too expensive so I'm looking out in PA to get started. Plus trying to house hack with a FHA loan in the city would be too hard to come by (in my opinion).
@Will Gebbie great suggestions, thank you.
