Understanding the New York Market (Long Island)

[Daniel Lewis]

I am a college senior who is looking to start investing in RE on Long Island, New York after I graduate. I would love to first talk to investors in this area to understand how to navigate around an expensive market while still receiving a good ROI. I am reaching out to see if anyone would like to have a brief conversation to share stories and strategies that you have seen as beneficial in this market. I look forward to hearing from everyone and would greatly appreciate any knowledge that could be shared with me.

[Abel Curiel]

Hey @Daniel Lewis!

I think you've received some great advice on here regarding the house-hacking strategy.

@Alexander Szikla & @Shawn Mcenteer are on point with the MFR suggestion. As @Ashley Czarnecki mentioned, house-hacking in areas with a younger crowd can make room rentals an attractive option. That should yield the highest ROI but will require more management than your other strategy options.

We've seen success with the house-hacking strategy in Long Beach, Patchogue, Massapequa, Valley Stream, Lynbrook, West Babylon, Holtsville and a few other LI towns.

Prices are a bit inflated due to such low inventory and high demand but if you're holding long-term, you should be able to find something that makes sense financially. Most house hackers lower their living expenses $6,000-15,000 in year 1 then take their savings, refinance, and use their equity after year 2 to get into their next house-hack. 

On their next house-hack, they lower their living costs even more, have a cashflowing asset (house-hack deal #1) and decide whether to do it a 3rd time, invest in larger units, or settle in their 'forever home'.

Best of luck to you moving forward!

Abel