All Forum Posts by: Dan Ashley

Thanks all for the great replies,
To try to sum up what everybody has said so far:

• Seems like the majority here recommend looking outside my general area since the prices are so high and I could get a better deal. My mind is blown that some of you, such as @Jason G. are able to purchase investment properties out-of-state that you've never seen in person. Very impressive. Is that common?

• Others are recommending finding a partner, potentially somebody to help purchase a bigger multi-unit building. I still don't fully understand how this process works if it's not somebody you personally know well (friend, family, significant other). Anybody want to chime in?

• Some are saying a condo isn't a bad purchase as well - it would require more patience but through appreciation I could net some profit or at the very least gain equity instead of paying rent. Still in my mind it seems like less of an investment and more of a lateral move.

• Then there's a few mentioning loan assistance programs such as FHA, NACA, etc. I assumed because of my salary / savings I wouldn't be eligible but haven't dug into what qualifications are. I'll have to do my dd on this one, but getting assistance sounds great if there's no catch.

Thanks everybody

@Jason G. Great points, and appreciate the local perspective – thank you. Amassing a lot of debt and being only able to make lateral moves if I sell is certainly a huge concern of mine. 

Breaking even definitely isn't a good investment strategy, if you could even consider it one.

What this post really comes down to, is I want to purchase a home in NY but also want to have enough money to grow my investments for my future. Was curious if having a multi-family I could live in and house-hack as a starting point is actually a smart idea or just one that's going to set me back financially? Out of state seems harder to break into simply because I'm not there - maybe Hoboken /Jersey city or further like @Eric Hajdu mentioned are better places to start.

Thanks everybody,

@Ian Plocky great advice. Having a larger building does seem like a better investment option if paired with partners. 
@Jason G. what would you consider a viable investment strategy? 

I feel like NY has the appreciation factor locked down. Though I know it's possible for rent and prices to go down, I'm willing to bet this city is here to stay. I'd be happy breaking even just to get the equity on a building, especially since I'm currently renting - aka giving my landlord wads of cash every month to buy new sports cars. Please chime in if you think there's another way to look at it.

Thanks!

Thank you both for replying, definitely easing my worries!

When you both say find a partner, what exactly does that mean? I'd imagine having a roommate who also gains equity would turn into a legal nightmare when either of us decide to move. Not sure I fully understand the cash investor situation you mentioned, Eric.

@Bryan Balducki a short term rental isn't a bad idea, tho I believe there's many laws in my area that prevent me from listing anything for less than 30 days unless I'm in the unit & available. Maybe there's a workaround I'm unaware of?

@Eric Hajdu yes those neighborhoods are definitely on my mind, but I'm particularly interested in the Williamsburg, Greenpoint, Bedstuy, Ft Greene, and Clinton Hill areas. Some of the further out areas seem like a good investment and appreciation play but I personally don't want to live out there yet. 

Thanks again :)

Hey all,

First time home buyer and my dream is to purchase a multi-family, reno and house hack in North Brooklyn. I want to live in one unit and rent out the other unit to help pay off the mortgage, then buy another spot when I have enough saved up as a vacation home.

I'm pretty set on where I live, been here 12 years and tired of paying rent.. but purchasing even a condo is 600k+ and multi-family in north brooklyn is easily 1mil. I have great credit, killer salary, and a bunch saved up but still can't afford a 20% down payment on anything over 600k. Buying a condo seems like a huge waste, whereas multi-family gives some cash flow to neutralize my monthly payments. Mostly worried that even if I find a place and the money, that I'll be making a big financial mistake and have little left to cover unexpected costs. Don't want to burn my money on the first go. 

Anybody have any advice? Am I totally priced out?

Thanks,
Dan