Hello from New York!

[Tony Scarangella]

Hi BP! My name is Tony Scarangella and I currently live in Queens, NY. I’m a newbie investor with exactly zero deals under my belt. A little about me and how I found the community...

For the last 10+ years I’ve worked a modest W-2 job in the field I went to college for. I enjoy it and don’t plan on leaving any time soon. That said, needing to commute to Manhattan daily meant high rent & small apartments, but COVID & WFH may have changed that calculation.

I asked a close friend of mine (who has purchased several houses over the years) about the process of buying a home. Of which, at the time, I knew nothing.

I had the typical "buy the biggest and best property you can afford" mindset. That conversation lead to him telling me about buy-and-hold, house hacking, BRRRR & BiggerPockers. My mind was blown! I didn't fully understand a lot of it, but I was in. By the end of it all, he had ordered Rich Dad Poor Dad, Set For Life, and a few others for me.

That was in October 2020. Since then, I've been buying and reading books at a clip I never imagined, listening to at least 1 REI podcast a day, and reading great posts here by you all (thx, btw)!

Although I like my W-2, I never thought I’d have a realistic option to do something else, until now... and that’s exciting.

I’m hoping to accomplish 1 of 2 goals (if not both) in 2021.

-Find a house hacking opportunity

-Invest in a long distance property

The first goal, since I may need to be tethered to NYC, might be tough and could be put on the back burner.

For the second, the obvious question is, “where!?”

And that’s where I’m at now. I’m in the process of doing research, analyzing deals, and trying to be ready to for the right opportunity. As I read and learn more I go back & forth on strategies, so that’s something I’ll need to nail down too.

I hope this long post was worth reading. Thanks... and hi!

[Alexander Szikla]

Why go long distance? Definitely house hack via FHA in NYC right now. If you can get a 4 unit and share the basement with your roommate, that would be ideal and create major cash flow and equity creation, plus you can share responsibilities.

Personally, I am very bullish on New York and NYC itself. Sure it suffered due to COVID, but you want to buy when there is distress. I think all the folks who moved away are already getting bored and already coming back. Plus, the vaccine is getting rolled out which will curb the spread tremendously. Now is the time to buy.

Cap rates came all the way down to 3% (or below!) during the "boom" times but COVID has loosened everything up and now 5% can be had in Manhattan, 6%-7% in Brooklyn and even 8% in the Bronx. The kicker here is that rates are much lower than the 7% that OP noted. Today nationwide rates hit a low of 2.7% - so there has really never been a better time "spread" wise.

Long term, I think NYC will come back as it always has time and time again. I am also a great believer in investing when there is distress and deploying capital when you can.

If you are looking for yield in the short run, Manhattan may not be for you. However, it is certainly the most attractive it has been in years from a cash flow perspective. If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made. And there is still plenty of cash flow opportunities in the outer boroughs if you buy right!