All Forum Posts by: Brittney Lynn

Hi @Scott E.

I know... you are right! It just seems so hard to find something that will let me live rent free in NYC when I factor in the 50% rule. The closest deal I found if I had all the units in a triplex rented out was a negative cash flow of $150. If I moved into the smallest unit I would be paying $1300ish. I have only been looking in places that meet 'MY' standards. I havent looked yet but I bet I could find a cash flowing property if I looked in more of the sketchy neighboorhoods but these places dont have the amenities that 'I' need - they may be perfect for tenants but I think I am a bit biased because I am looking at the property as a home for myself first and an investment second.

Hi @Scott Swink

Hi @Christine Glasner undefined

Great to meet you guys and thank you!

Hi Guys!

I am looking to break into the world of home ownership very soon and have a few questions.

I currently live rent free (woohoo) at my moms house on Long Island. Prior to that I was living in NYC and paying $1700 on a tiny one bedroom.

I know that everyone talks about cash flow here on Bigger Pockets but am I crazy for just wanting to pay as little as possible to live in this great city?

As I am sure you know, it is very hard to find a cash flowing property in New York City that is not in a sketch area. I have been looking in decent areas but cannot find anything that will cash flow at the BP golden ratio of $100/door.

I am also not yet ready to leave this city so my plan is this:

Find a duplex, live in one side and rent out the other. The numbers I am about to quote are just generally what I am finding but as an example:

House is $500,000

Principal & Interest is $2200

Each unit rents for $1500 so that would be $3000 per month. Applying the good ol' 50% rule I can expect to collect $1500/month. Now because I am living in one of the units lets halve that to $750 in collected rents per month.

If I now subtract the rental income from my principal and interest payment

$2200-750, I am left with a payment out of pocket of $1450. To all the investors out there this is bad because it is essentially negative cash flow.

The way that I look at it is when I was renting, I was paying $1700 a month to rent. If I buy a duplex, I am essentially only paying $1450 in 'rent' and at the same time building equity and hoping the property appreciates, raise rents etc.

Further down the line, I would eventually leave this property or sell it, or continue to live in it to pay 'cheap rent' in NYC and buy something out of state that does in fact cash flow but for my first property I think my goal is to simply pay less than I would pay if I was renting.

This would be my first property and at the same time I am VERY anxious to get out of my moms house!

Am I nuts for looking at it like this?

Thank you!!!

My name is Brittney from New York. I am very very new to real estate and hoping to get my feet wet in the next few months.

I have been a long time lurker but now a first time poster of Bigger Pockets! I am currently living at my Moms house on Long Island and dream of one day owning my own place. I have been saving saving saving for the past few years and think I am ready to step into the world of Real Estate!

My plan is to purchase a two or maybe a three family, live in one part and rent out the others to help me pay the mortgage! This plan seems to be pretty popular on here.

I'm going to head over to the 'Getting Started' forum and post some juicy details of my plan. Hope to meet some of you soon!