Hello from Queens, NYC

[Michael R.]

Hello Bigger Pockets! Lifelong Queens resident here. I grew up in Richmond Hill, rented in Astoria for a few years and my wife and I bought our first house last year; a multifamily in Jamaica. We have been living in one unit and renting the other, which I recently learned is called house hacking. I am already looking to our next move and interested in hearing what others are doing to build there portfolios in NY real estate; thought the more I read the forums and listen to podcasts I am tempted to venture out of state.

[Basit Siddiqi]

@Michael R.

Welcome to Biggerpockets!

Congrats on the househack!

Househacking is great because as it provides you the opportunity to get into real estate with less cash down(3.5% if you did an FHA).

It also provides you "training wheel's" to becoming a landlord as Brandon Turner would say.

A lot of NY real estate investors are investing in upstate NY, nearby states such as CT, NJ, PA or doing long-distance investing in states across the United States.

Not many NYers are investing in NYC itself because of the higher entry point and a lot of the properties do not provide cash-flow opportunities(however they can provide appreciation...but not many investors like that speculation portion).

Remember from a tax perspective that your househack is part rental property part personal residence.

The personal residence portion of the house is eligible for exclusion of upto $500,000 of gain if you live there for 2 years.
The investment property portion of the house is eligible for like kind exchange upon sale deferring your gain.

Also you are able to deduct direct expenses and indirect expenses related to the investment property on your tax return.