A house hack via FHA can get a 4 unit and a basement, which would be ideal and create major cash flow and equity creation, plus you can not worry about a property manager and boost your yield.Personally, I am very bullish on New York and NYC itself.

You have to add in your monthly mortgage payments and obviously that dramatically lowers your profits.

At the end of the day, I am a buy and hold investor so I am all for accumulating as much properties as possible as long as they are profitable otherwise you will be supporting that property out of your own pocket every month, which limits your growth dramatically. 

@Jason Thomas, there is a good chance your maintenance and Capex are dramatically low.  

The cashflow looks nice, of course, and the 10 year option gives lots of time to really improve the property and boost rents, etc.

This new world will allow the REI to:1 - Pay more than the asking price2 - ...and at the same time, pay less for the property, and...3 - Make a much higher return (cash flow or profit),...much faster than using the simple strategies most REI use today.Bonus:  Since this knowledge is used by a minority of REI, the competition for properties (deals) is dramatically reduced.Bonus, Bonus:  ...and, the economy, and trends in the market, market direction, property value directions, etc...matter not.

Plenty of people do those kinds of numbers as well (and the absolute most crucial part is to make the bid based on market value and also based on knowing your walk away price) - but once you've figured out market value, tweaking the number so that you bump upward from a 5 or 0-ending number, as long as that's still OK with what makes sense financially, might help boost you past a few others. 

I will generally say for a property like the one you're describing- you will probably find the assessed value to be dramatically lower than the purchase price for a few years, maybe longer.

Spending a few grand shortened the learning curve dramatically and he's now a resource for any questions I may have on land (or any aspect of RE). 

Scarce inventory has been problematic for the past few years, an issue that has only worsened in the past month due to the dramatic surge in lumber prices and the dearth of lumber resulting from our California wildfires.