Househacking or Long Distance Investing?

[Robert Alexis]

Reaching out looking for advice and would love to hear from those who have also lived in a HCOL area and contemplated which of the two strategies to pursue, especially as a 1st time investor.

Background: I live in Queens, NY making over 100k per year and am looking to purchase my first property in the next 4-6 months. My approaches to each strategy would be:

Househacking: I'd target a two-family in Queens or Nassau County Long Island via an FHA loan. Purchase price range likely $600-725k and I'd live in one unit until I could refinance out of the PMI. At best rental income would likely only cover about 50-60% of the monthly payments. I can cover the rest without issue but this is a hefty expense.

Long distance: I’d target upstate NY (either Albany or Binghamton) where I’d look to purchase a cash flowing turnkey property for student housing (preferably). Purchase price range flexible from 100k to 300k depending on the numbers of the deal. 

Other factors: I have a time consuming day job that often requires late nights and weekend work which will make me reliant on a property manager I can trust if I go the long distance route.

Any advice?