House hacking near NYC

[Jonathan Lee]

Hello BiggerPockets,

I am a first-time investor looking to house-hack a 4-unit multifamily near NYC. This puts parts of Jersey, Queens, and Brooklyn on the table. My budget is up to $2.2 million, given that is the FHA limit for these HCOL areas for 4-plexes.

I am leaning towards Brooklyn because:

1) I want to live there myself

Because I am going to occupy the unit, I want to make sure that I want to live there. This mainly means that it is close to transportation and no more than 30-40 minutes from Manhattan (I work in the city), and has good parks nearby to run/cycle. For example, areas near Prospect Park in Brooklyn have high appeal for me. In addition, Brooklyn is filled with young professionals and has a lot of fun stuff to do.

2) I want an appreciation play

I understand cash-flow near NYC is tough, so I want the appreciation play to be strong via the forced appreciation and via normal appreciation. This is especially true given the high price I expect to pay for the property, as I think appreciation will give me the best ROI.

I prefer house-hacking to out-of-state because:

1) I want to own the house I live in

This is a pure emotional thing. I'm not a fan of renting, feels too transient.

2) I'd like to gain first-hand experience managing

Before hiring an out-of-state property manager, I'd like to have the experience of managing a property myself to better understand the challenges.

My questions are:

1) Are my motivations reasonable?

2) Brooklyn, Jersey, or Queens?

3) Is FHA a smart move?

Any other related input is appreciated. Thank you!