Purchasing First Multi-Fam Home In The Big Apple!!

[Marvell Martin]

Hi All! 

NYC is expensive as we all know. I currently rent in queens, and I am in the process of beginning the home buying process. I am looking for a duplex or triplex where I live in one of the units, and rent out the others. 

However, I run an online business, so I do not really have any location constraints. I would like a sub-100k down payment+closing costs.

Goals

1. Reduce out of pocket living expense for this year (Sub $1475 which is my current half of the rent).

2. Live here for a year, and then repeat with a new property. 

I am fine with options in other states. So what do you guys think? Should I focus on NY, or out of state? What is it like being a landlord in NY? Should I avoid it? Do other states have better markets? 

Once again, the main concern is a decreased living expense, but I also want to purchase in an area with long term appreciation potential. Thanks for the guidance!!

[Jack Pasmore]

Hey @Marvell Martin ,

You're thinking along the right lines by house hacking a duplex or triplex! Given your goals of minimizing living expenses and setting yourself up for future investments, here are a few things that I'd consider:

NYC vs. Out of State

• NYC Challenges: High property prices, strict landlord-tenant laws, and heavier taxes. While appreciation is strong in some areas, cash flow is typically lower compared to other markets.
• Out-of-State Benefits: You can find better cash-flowing properties with lower entry costs. Cities in the Midwest and Southeast (like Indianapolis, Cleveland, or parts of Florida) offer lower purchase prices, better rent-to-price ratios, and more landlord-friendly laws.

House Hack in NYC?

If you stay in Queens or look at the Bronx, you might find a duplex/triplex, the key question is whether your rental income offsets enough of your expenses to meet your $1,475 target or not.

Out-of-State Options

You mentioned no location constraints—this opens up many landlord-friendly markets with properties in the $250K-$400K range where a 3.5%-5% down payment keeps you at a low entry cost. These markets also allow you to repeat the strategy more affordably and frequently.

Being a Landlord in NY

On the other hand, NYC has some of the most tenant-friendly laws in the country, making evictions and rent increases harder. If reducing your out-of-pocket cost is your top priority, it may not be the best choice for your first investment.

Final Thoughts

If appreciation is a priority, NYC has historically been strong, but it's not as easy to cash flow. If you want a better balance of cash flow and appreciation, consider landlord-friendly markets out of state. House hacking is a great strategy—just make sure you run the numbers carefully to hit your goals.

Would you be open to looking at specific markets that fit your criteria? I'd love to connect. I'm always happy to help! Feel free to reach out at any time.

Jack