House Hacking in NYC

[Tae Young Lee]

I'm currently in the process of applying for a VA Home Loan, in New York City, and could potentially have up to $625,000.00 to spend on a multifamily home. I've been looking mainly in Brooklyn and the Bronx. The problem I run into is that, because I'm occupying one of the bedrooms I find it hard to just break even when factoring in the income vs. expenses. Does anyone out there with more experience know if it's even possible to come out with a positive Cash on Cash ROI, when you're house hacking in NYC? One thing to note is that I work near Manhattan and I don't want to purchase anything too far on the outskirts of the city.

[Ramon Guzman]

Your best bet is the Bronx if you want to stay in the boroughs and have your tenants pay your mortgage. 625k will not get you a multifamily that is move-in ready and will offset your entire mortgage in Brooklyn. When looking in the Bronx, look in Throgs Neck, Country Club, Morris Park, Indian Village, Pelham Bay and Pelham Gardens. All great neighborhoods. The market is has gotten quite expensive here over the last 2 years, after bouncing back from the recession. I suggest making a move quickly once you find something you like. Your best bet is a 2 family with a walkout apartment that you can live in. Otherwise, you're priced out of the situation you are seeking.