Investing in a War Zone

[Account Closed]

Good afternoon Bigger Pockets, I found a multi-family house for a house hack which I can buy at a slight discount in the Bronx. The Bronx, NY is a very dangerous place to live in most areas and this house is in one of those areas. The reason that I'm considering this investment is that I can get a deal on the property and the rents are enough for a slight cash flow on a house hack. The house is also appealing to me because there is parking and it is turn key, built in 2007. Thoughts?

[Fabio Salas]

I live in San Diego now, but I lived in NY during the 90s.  Personally, I would not invest in a buy and hold in NY unless it had significant cash flow.  By significant I mean a minimum of $500 dollars per door.  Otherwise I'd suggest you definitely invest in NY, but through alternative means.  Flipping, wholesaling, etc.  Or, if you're adamant about investing in buy and holds look elsewhere in NY.  All of that said, if you're comfortable living in a 'war zone' and more importantly being a landlord in a 'war zone', AND if you plan to househack said property for at least 5 years, then the numbers start to make more sense in my mind.  You'll save a ton of money on rent/mortgage by househacking for 5 years, you'll have a decent amount of equity built up from mortgage payments alone, and if the markets hold (which is not likely to do over the next 5 years; experts believe we're due for a market downturn within the next year or two) you'll see some appreciation.  Good luck with whatever you decide.