--Question--To reduce my housing costs to $0 or cashflow positive I have come up with two potential scenarios....Scenario 1:Move into a two bedroom apartment in Manhattan and rent the extra bedroom to break even on my monthly living costs. 

The city just took the number #1 position from Seattle.

@August HansenI am in a similar position as you are but I have multi family land.

PenFed's HELOC stuff is liberal, their 30YF first position mortgage stuff is more conservative.

If the house is priced correctly the one unit can generate enough revenue to cover the overhead and still have positive cash flow.

As most things in life, I think it's combination of luck, your skill with navigating the system, and your ability to build positive relationships.  

I wouldn't buy for appreciation at this moment in time because who knows when the next correction will come...many think it will be sooner rather than later.....if you are able to buy for cashflow right now in Philly that can definitely be your hedge against the coming correction.Full disclosure...I am NOT an expert....I have 2 units in the SF Bay Area that I have for cashflow and am hoping for appreciation...but if they don't appreciate I still have positive cashflow on one unit and I'm barely below cashflow on the other......In Cleveland I have 6 units and all are strictly for cashflow and they are all between the 2% to 3% rule.

Another thing you hear on the Podcast is investors coming in and having a positive impact on the neighborhood and working with the police and the community to reduce crime and make it safer.

But the other 2 units are student housing which helps gets me cash positive.  

My reasoning is I want to be 1st position, and probably performing at this point.