House Hacking Long Island - anyone pull it off as a noob?

Question

I live in Suffolk County. I need to live on Long Island for about another 4 years (once my teens are old enough I am more than likely outta here). I currently rent a townhouse type unit. Absurd rent. I have disposable income I'd rather not see squandered or put towards another year of rent. I have a side gig as well as a 6 figure W-2 job. Unfortunately my options are limited on location as well. Trying to house hack in A or B areas is next to impossible for various reasons. Duplexes or triplexes (mulit-family) are rarely if ever available. The numbers do not add up. Even if I didn't want to "live for free" the rent from the other unit(s) would never cover the mortgage even with a traditional 20% down. My goal is to at least have my monthly mortgage covered (I know, who wouldn't?).

Anyone have experience successfully house hacking or getting started in Real Estate on Long Island over the last year or two? Any suggestions? Am I missing a finance option? Are there creative ways to pull it off I am not seeing? How did you succeed? I am new so I am still absorbing info at a rapid rate. Thanks in advance.

Anyone have experience successfully house hacking or getting started in Real Estate on Long Island over the last year or two?  Any suggestions?  Am I missing a finance option?  Are there creative ways to pull it off I am not seeing? How did you succeed? I am new so I am still absorbing info at a rapid rate.  Thanks in advance.

Matthew Cassella · Answer

It's definitely doable. I currently rent out my basement and collect more than half of my mortgage. Key things to looks for if you can't find the perfect match.

1. A basement with a bathroom: This means plumbing is there and you can potentially build a kitchen adjacent to it and use that plumbing for a lower cost.

2. Bilco Door to basement: This means you can convert it to an outside entrance with some work but heavy lifting is mostly done.

3. Mother/Daughter Setup: If the 2 areas are connected it might take a little construction to separate them. Usually both areas have bathrooms and kitchens.

A lot of people rent half their houses on LI. Some do it illegally so if they list their house usually they omit those spaces on the listings.

Hope this helps.

Ray Smith · Answer

@Greg Pasquale

It’s hard to make work, but with some creativity there are deals to be found.

I’m currently house hacking in Stony Brook, in a Mother/Daughter set up. Here are the details: https://www.biggerpockets.com/topics/796584

Nolan Snyder · Answer

Greg,

I hear what you're saying! I actually lived many other places but some how ended up back in Suffolk county Long Island. I also hope to retire somewhere else. I am new to the site and RE investing but I have a W2 and I have been a licensed RE Agent for years (side gig). I can definitely tell you that any property wether it is a single family, multi family or going to be converted to a rental of any sort needs a permit in most places on Long Island. I have gone through the process in Brookhaven and helped in a few other townships. Its not very expensive at the time maybe 1000-2000 dollars. They would come out and inspect and you need to submit paperwork and pretty much just get pemission. This will also raise the taxes a little but the rental income would be far more than the increase. 2 family or more need separate utilities to be "legal" as well. Several years ago I helped a family moving from queens and there all they needed to do was register their house as a rental, they did it online and it cost maybe 100 dollars. Most people on Long Island have "illegal" rentals if they're house hacking in a single family home.  Side note any "illegal" rentals can no longer be advertised by any RE professionals or Brokers as of a couple years ago they started enforcing this. So you won't find on many sites. Maybe craigslist. OK I think I'm rambling now. Ha. Anyway hope this helps!

Greg Pasquale · Answer

@Matthew Cassella

Thanks.  All you listed are things I am considering.  I have a novice question though and I can't seem to find a straight answer, since there probably isn't one.

If I bought a SFR and converted to a 2 family  - permits needed?  Is it always "illegal".  Even my neighbors who rent either won't say (probably illegal on the books) or "don't know" since this is how they bought the house.

And is that even allowed in certain zones.  For instance in certain towns in LI, AAA, AA, A, B zones always say SFR only.  But do they just mean the type of structure?  I can't see not being able to purchase a SFR that is legally a 2 family - if that makes sense.

Also, let's say all the work that needs to be done is inside the home to make it a 2 family and I still wanted to legally make it a 2 family, what is the cost (of the permitting process, not the construction), is it a hassle?

When I search purely residential areas on LI for "multi-family" - there is never if any multifamilies available.  Is that demand or because they are technically "not allowed"?

I know, lots of rookie-ish questions.

House Hacking Long Island - anyone pull it off as a noob?

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