Hi Nik Parks,
I currently live in Astoria, NY too. I know this market very very well. This is one of the priciest place in the 5 boroughs. It took me a full 4 years from the time I started looking to actually find and buy a duplex. I am currently NOT renting out the other unit but am using it myself. I might in the very near future.
The reason why it took me so long was because I wanted to do it the conventional way. If I had been more adventurous in seeking hard money or investors it would have worked earlier.
It is doable in Astoria, but you need to know your market.
1. You can find properties lower than what you quote. Prices has gone up in Astoria but you can still find a good sized duplex for 750k. Looking at websites like Realtor, zillow, Trulia, Redfin, etc are great but by the time the houses end up in the MLS listing, the listing broker has already tried to sell the house him/herself for at least a week or two. You need to walk the streets to keep an eye out for the signs in Astoria. If you have a good broker, he will call you too. It takes time to build that relationship but so worth it.
2. Rental in Astoria has always been high. It is mainly due to the proximity to Manhattan as well as the fact the landlords know that demand is high and supply is low. Thanks to the Manhattan market forcing mid-income (75k is mid income in Manhattan!) pple out of Manhattan rental market. I receive phone calls from realtors asking if i want to rent out my property regularly. So I know from an ability to rentout perspective, this place is golden. If you are paying 1400 for a one bedroom, YOU ARE LUCKY! hold on to it. As of today, with 1400 you can mostly get only a studio. So if you do find a duplex, you can live in one and rent out the other. So if you have a 2 bedroom apartment as part of a 2 over 1 duplex to rent, you can easily get 2.2k. That is a conservative estimate.
3. Please be aware of closing cost. when I first set out to look for a place, I did not take all that into consideration. Usually, in addition to closing cost, you shd have cash ready for small things that may come up.
4. If you want to invest in Astoria and be able to do it in a affordable way, your best bet is to find a fixer upper and take a reno loan. the conventional one is called 203k. That is what i did. Do know this though, most of the houses in Astoria are old houses. which means that when you fix it up you will have to be prepared for lots of things that won't come up in the initial contractor quote... I had to pay almost 10% out of pocket cos the loan contingency fund was not able enough to cover the unexpected.
5. Please also be aware that the Mortgage interests advertised usually do NOT apply to duplex or bigger houses.
6. As your wife loves NYC, you may consider other areas in the boroughs. There are still many places in Brooklyn and Bronx that are coming up. I know of some but not enough to give advise so I will refrain from commenting on that. If you do choose to invest in Astoria, you can build equity at the very least. You are only 25. It is great that you are already thinking of your future!
Personally,I love Astoria.I have lived here for 8 years now. I don't have the time to invest out of town. I am on the hunt for my second investment. This time i hope to be do it faster. Don't be disheartened. The traditional rule of the thumb investment strategy may not work for high cost areas like NYC but it can be done.
I wish you all the best wherever you choose to invest in. If you need any advise specific to Astoria NY do drop me a line.
