Advice on purchase to lower housing costs in NYC

[Tony Chen]

Hey BiggerPockets,

I am looking for some advice on my first purchase for a primary residence to lower my housing expenses in NYC. While also being within 1 hr commute to manhattan for my W2 job, not living in an unfavorable neighborhood, and being close to the subway, ideally in queens. I have researched/lurked on the forums for house hacking and the common saying in NYC is that the likely outcome is you end up paying cheaper living expenses. So I am trying to decide which purchase and strategy is more worth it to pursue to lower my housing expenses without unfavorable living? Buying a 1 bedroom co-op or doing an NYC house hack with maybe a 2 family duplex? Thanks!

[Mohammed Rahman]

Hey @Tony Chen - I'm an investor & broker in NYC, I'm also a house hacker and work primarily with other house-hackers. 

You're not wrong, and I have a ton of videos online and blog posts about this too: NYC is not a cashflow market, like any other high cost of living city. 

Yes you can find properties that cashflow, but that's if you're looking at properties that are value-add (BRRRR method) or in the more 'developing' areas of the city.

You mentioned Queens - if you looked in South Jamaica, around St. Albans, you'll be able to find properties that cashflow - but you might not like the overall tenant profile there: same thing for areas in the Bronx. 

In terms of deciding between one or the other, I typically recommend figuring out what actually works for you in terms of overall budget/numbers. I don't recommend a co-op, you mean CONDO (co-ops are anti landlord) for an apartment purchase. 

Buying a 2-family will be better in the long term because your rental revenue will increase gradually, and so will your property's price appreciation. 

Feel free to reach out to me directly from the contact info in my signature, I'll send you a DM as well.