New member in Long Island, NY

[Tom Chen]

Hello everyone... So I didn't read the sticky on how to I intro. Apologies. New member in Long Island and I'm hoping to get started within the next 6 months. I was thinking of SFH in the less affluent neighborhoods since my DP is only going to be around $15k. Obviously I would thoroughly vet the renters to get started. Looking to B&H since I don't have enough capital to flip and have a day job. So even in some of those neighborhoods, homes are still listed at around $150k - $200k...my FICO is a little above 700. Will that DP be enough to try and get started? If it is, the cash flow should still be worth it at the rental rates in the area. I'm basing all my assumptions off Zillow estimates and rental prices. Thanks in advance! Tom

[Christopher Phillips]

Welcome.

If you were to live in the house you could go for a 3.5% FHA loan. You would still have closing costs, which are around 4-5% in NY.

If you're buying a property purely as an investment and plan to live in it, you would need 25-30% down payment plus closing costs.

These would be with traditional lending sources.

Homes in LI Nassau County area in the $150K - $200K are barely livable. You would also have to put money into the house to get it ready to live in. You might be able to find a co-op in that range, but the co-op board will usually have rules against renting it out.