Neighborhood suggestions near public transport for house hacking

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Neighborhood suggestions near public transport for house hacking

Julie Chen
Member since 2021 · 7 posts · 2 votes

I am interested in buying another primary residence to take advantage of Fannie Mae's 5% down for multi family homes so I can house hack. I am a single female and cannot drive since I grew up in NYC, so I'd like to get suggestions for safe neighborhoods near public transportation. (I tried taking the road test multiple times and it is a work in progress...)

I'd really appreciate it if you have any suggestions for neighborhoods in:

- New Jersey, Connecticut, Philadelphia, even upstate NY

- Seattle area 

- Washington DC, Virginia, Maryland area 

- Boston area 

My budget would probably be under 1.5 million depending on how much rental income I can get. 

For example: 

1 million, 3 bedroom home

P&I is $5,695 (5% downpayment, 6% interest) 

$3K rental income (assume I can rent out each of the 2 bedrooms left for 1.5K each)

which leaves me with paying 2,695 which I am comfortable with. 

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Michael HaasBusiness Member
Real Estate Agent · Sammamish, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 725 posts · 3k+ votes
2y

For Seattle, anywhere in North Seattle, West Seattle, or near lightrail in South Seattle could be a really good fit. North Seattle & West Seattle tend to have a better reputation than South Seattle, but there are great pockets in every part of town!

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  • Jack Seiden
    Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 656 votes
    2y
    Quote from @Julie Chen:

    I am interested in buying another primary residence to take advantage of Fannie Mae's 5% down for multi family homes so I can house hack. I am a single female and cannot drive since I grew up in NYC, so I'd like to get suggestions for safe neighborhoods near public transportation. (I tried taking the road test multiple times and it is a work in progress...)

    I'd really appreciate it if you have any suggestions for neighborhoods in:

    - New Jersey, Connecticut, Philadelphia, even upstate NY

    - Seattle area 

    - Washington DC, Virginia, Maryland area 

    - Boston area 

    My budget would probably be under 1.5 million depending on how much rental income I can get. 

    For example: 

    1 million, 3 bedroom home

    P&I is $5,695 (5% downpayment, 6% interest) 

    $3K rental income (assume I can rent out each of the 2 bedrooms left for 1.5K each)

    which leaves me with paying 2,695 which I am comfortable with. 


     So multi family at least in our area, the d.c. area tend's to be in rougher areas, even the stuff in good areas, tends to be poor cash flow, for instance i was just look at a multi family for another clenit 4 unit good area, with 5% the payment would be 10k a month, fully rented at market rent's would proably about 6500. So my advice at least in our area would be to look in the 700-800k range put 10-15% down rent the basement. You at that price point are proably looking at a townhouse in silver spring, arlington or alexandria, if you want a single family home you could look area's like wheaton or rockville but while i'm sure you could do most of your stuff walking or on transit, those areas would be tough to not have a car for at least certain things, though i'm sure you could get away with it if you really wanted to.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    2y
    Quote from @Julie Chen:

    I am interested in buying another primary residence to take advantage of Fannie Mae's 5% down for multi family homes so I can house hack. I am a single female and cannot drive since I grew up in NYC, so I'd like to get suggestions for safe neighborhoods near public transportation. (I tried taking the road test multiple times and it is a work in progress...)

    I'd really appreciate it if you have any suggestions for neighborhoods in:

    - New Jersey, Connecticut, Philadelphia, even upstate NY

    - Seattle area 

    - Washington DC, Virginia, Maryland area 

    - Boston area 

    My budget would probably be under 1.5 million depending on how much rental income I can get. 

    For example: 

    1 million, 3 bedroom home

    P&I is $5,695 (5% downpayment, 6% interest) 

    $3K rental income (assume I can rent out each of the 2 bedrooms left for 1.5K each)

    which leaves me with paying 2,695 which I am comfortable with. 


     Im DC Id look at Capitol Hill, Noma, and Columbia Heights with your budget.

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  • Chris Pelc
    Investor · Philadelphia · Member since 2023 · 104 posts · 46 votes
    2y
    Quote from @Julie Chen:

    I am interested in buying another primary residence to take advantage of Fannie Mae's 5% down for multi family homes so I can house hack. I am a single female and cannot drive since I grew up in NYC, so I'd like to get suggestions for safe neighborhoods near public transportation. (I tried taking the road test multiple times and it is a work in progress...)

    I'd really appreciate it if you have any suggestions for neighborhoods in:

    - New Jersey, Connecticut, Philadelphia, even upstate NY

    - Seattle area 

    - Washington DC, Virginia, Maryland area 

    - Boston area 

    My budget would probably be under 1.5 million depending on how much rental income I can get. 

    For example: 

    1 million, 3 bedroom home

    P&I is $5,695 (5% downpayment, 6% interest) 

    $3K rental income (assume I can rent out each of the 2 bedrooms left for 1.5K each)

    which leaves me with paying 2,695 which I am comfortable with. 

    With a budget of $1.5M you aren't really limited to neighborhoods, in Philadelphia. With that being said, some of the neighborhoods that are near public transportation would be anywhere in University City, Rittenhouse, Center City West, Washington Sq. West, Fitler Sq, and a few more. 

    If you are familiar with 30th St. Station, which is located in University City, it is one of the biggest hubs for Septa, Amtrack, and other major rail systems. Anywhere in close proximity to city hall in center city, you will have pretty easy access to the subway systems. 

    Generally speaking, all of these mentioned areas are really A- and above. So the purchase price of a property in theses areas will be reflected on that. To assure you will have a good CAP rate, with decent cash flow, you just need to make sure you do as much due diligence on the front end as you can. Multi-unit properties 3+ units might be your best bet. 

    If you're interested in understanding off market inventory in these areas, i would be glad to connect. 

     
    1Reply
  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Agreed with @Chris Pelc here. With that budget you have a lot of room to play with and can be in some of the best neighborhoods in Philly. You can even afford a newer build and something that is 100% turnkey. 

    I am an agent and investor in the area and would be happy to connect and share my thoughts. Reach out anytime!

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  • John McDonald
    Member since 2023 · 158 posts · 96 votes
    2y

    Your strategy to utilize Fannie Mae's 5% down for a multifamily home to house hack is a smart move, especially in high-demand urban areas. Given your requirements for safe neighborhoods near public transportation, and considering your budget and rental income goals, here are some specific suggestions:

    1. New Jersey: Look into areas like Hoboken or Jersey City. These areas offer excellent public transportation options to NYC and have a vibrant community. They are popular among young professionals and could provide good rental income.
    2. Connecticut: Stamford and Norwalk are great options. They offer safety, a good quality of life, and access to public transportation, particularly the Metro-North Railroad, which provides an easy commute to NYC.
    3. Philadelphia: Consider neighborhoods like Rittenhouse Square or Old City. These areas are not only safe and pedestrian-friendly but also offer excellent rental potential due to their proximity to major employment centers and cultural attractions.
    4. Upstate NY: Look at cities like White Plains or New Rochelle, which are well-connected via Metro-North to NYC, offer urban conveniences, and have a range of multi-family homes.
    5. Seattle Area: Neighborhoods like Capitol Hill or Ballard in Seattle are excellent choices. They are safe, have a strong rental market due to their proximity to major tech employers, and offer good public transit options.
    6. Washington DC, Virginia, Maryland Area: In DC, consider areas like Capitol Hill or Dupont Circle. In Virginia, Arlington and Alexandria are great options with easy Metro access. In Maryland, Bethesda and Silver Spring are both safe and well-connected.
    7. Boston Area: Neighborhoods like Cambridge, Somerville, or Brookline could be ideal. They are safe, have excellent public transport links, and are in high demand for rentals due to their proximity to universities and tech hubs.

    With a budget of up to $1.5 million, you should be able to find suitable properties in these areas. However, prices and rental incomes can vary, so it's crucial to do thorough market research. Consulting with a local real estate agent who understands the dynamics of house hacking and rental markets in these areas would be highly beneficial. They can provide insights into specific neighborhoods, potential rental incomes, and property values.

    Remember, when calculating your costs and potential income, factor in property taxes, insurance, maintenance, and potential vacancies. This will give you a more accurate picture of your financial commitment and cash flow.

    2Reply
  • Sunny A.
    Real Estate Agent · South Jersey and Philadelphia, PA · Member since 2016 · 52 posts · 13 votes
    2y

    You did not mention your current residence city and state.

    If you are looking to commute frequently or occasionally to NYC, Philly is definitely good option.

    30th street station is Amtrak stop. you want to be close to that( university city area, south of art museum and rittenhouse). I used to live in that area and I know lot of corporate people did weekly commute from NY and Connecticut to Philly via Amtrak.

    Other good option would be Jersey city because of the proximity to NYC.

    I personally prefer to be in close proximity of my investments but to each their own.

    0Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    Responding to Boston specifically, you can get a duplex in Boston that's in renovated condition in Southie, Dorchester, Jamaica Plain, Eastie, some parts of Cambridge, for that price range and rental requirement. Likely you'd like 2 units with one 3 bed and another 2 bed which would allow you live independently and within less a mile walk to the T. Both the cities have great tax rates (around 1% of purchase price, with owner occupied exemptions to add) and also enables you to Airbnb your unit should you choose. 

    Best of luck!

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  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    2y

    Come to Texas....you can get 2 4plexs for that investment.  They'll probably be newer (built in the last 10 years) and looks like rents will be better.  I would probably expect rent at about $1500-1700/Unit on $400-$450K investment now.

    0Reply
  • Daniel McDonald
    Real Estate Agent · Beverly, MA · Member since 2019 · 358 posts · 308 votes
    2y

    I’ve been house hacking 30 mins north of Boston for the past few years but in an area that requires a car. If you want o be closer to the city/public transportation I love Somerville/Malden area. You buy anything there you’re going to do just fine! 

    Always happy to chat through different neighborhoods if you ever need help.

    0Reply
  • Bogdan Constantin Stefanide
    Realtor · Norwalk, CT · Member since 2016 · 203 posts · 69 votes
    2y
    Quote from @John McDonald:

    Your strategy to utilize Fannie Mae's 5% down for a multifamily home to house hack is a smart move, especially in high-demand urban areas. Given your requirements for safe neighborhoods near public transportation, and considering your budget and rental income goals, here are some specific suggestions:

    1. New Jersey: Look into areas like Hoboken or Jersey City. These areas offer excellent public transportation options to NYC and have a vibrant community. They are popular among young professionals and could provide good rental income.
    2. Connecticut: Stamford and Norwalk are great options. They offer safety, a good quality of life, and access to public transportation, particularly the Metro-North Railroad, which provides an easy commute to NYC.
    3. Philadelphia: Consider neighborhoods like Rittenhouse Square or Old City. These areas are not only safe and pedestrian-friendly but also offer excellent rental potential due to their proximity to major employment centers and cultural attractions.
    4. Upstate NY: Look at cities like White Plains or New Rochelle, which are well-connected via Metro-North to NYC, offer urban conveniences, and have a range of multi-family homes.
    5. Seattle Area: Neighborhoods like Capitol Hill or Ballard in Seattle are excellent choices. They are safe, have a strong rental market due to their proximity to major tech employers, and offer good public transit options.
    6. Washington DC, Virginia, Maryland Area: In DC, consider areas like Capitol Hill or Dupont Circle. In Virginia, Arlington and Alexandria are great options with easy Metro access. In Maryland, Bethesda and Silver Spring are both safe and well-connected.
    7. Boston Area: Neighborhoods like Cambridge, Somerville, or Brookline could be ideal. They are safe, have excellent public transport links, and are in high demand for rentals due to their proximity to universities and tech hubs.

    With a budget of up to $1.5 million, you should be able to find suitable properties in these areas. However, prices and rental incomes can vary, so it's crucial to do thorough market research. Consulting with a local real estate agent who understands the dynamics of house hacking and rental markets in these areas would be highly beneficial. They can provide insights into specific neighborhoods, potential rental incomes, and property values.

    Remember, when calculating your costs and potential income, factor in property taxes, insurance, maintenance, and potential vacancies. This will give you a more accurate picture of your financial commitment and cash flow.

    @John McDonald it right about CT, I would also Fairfield CT to the list

    1Reply
  • Jared Boundy
    Real Estate Broker · Seattle, WA · Member since 2017 · 139 posts · 82 votes
    2y

    Hi Julie, I agree this is a great way to start. In Seattle, there's a decent bus system and expanding light rail. I'd encourage looking along the I-5 corridor, close to the light rail. Don't get too close to Aurora to avoid the seedier parts. North Seattle, Shoreline, Mountlake Terrace, & Lynnwood on the North. Or you could even look at Kirkland or Bellevue you East. It's tough to find good multi family properties, but SFRs should provide some opportunity, including in many areas to build additional units in the coming years (new regulations will kick in mid 2025 in most of the urban area to allow multiple homes or a home with 2 ADUs on SFR lots).

    0Reply
  • Savannah Yingling
    Realtor · Chevy Chase, MD · Member since 2023 · 74 posts · 51 votes
    2y

    Hi Julie! Washington DC, Virginia & Maryland are all great areas for multi family. In DC there is Dupont/Logan Circle, Capitol Hill or areas near Georgetown/Adams Morgan. In Maryland, you have areas such as Silver Spring, Bethesda, Rockville, and Takoma Park. In Virginia, there is Arlington, Alexandria and Fairfax. As someone else mentioned, the prices in these areas will vary but all of these cities constantly have people moving in and out.

    2Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Sammamish, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 725 posts · 3k+ votes
    2y

    For Seattle, anywhere in North Seattle, West Seattle, or near lightrail in South Seattle could be a really good fit. North Seattle & West Seattle tend to have a better reputation than South Seattle, but there are great pockets in every part of town!

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    HouseHack Seattle | Michael Haas & Team572 Reviews
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  • Dennis Nguyen
    Real Estate Agent · Seattle, WA · Member since 2017 · 150 posts · 80 votes
    2y

    Hey Julie! I'm a house hacker myself in Seattle and think anywhere close to the lightrail would be good if you don't want to drive. If you want lower price points, you can look in Seatac, Burien, or Tukwila! I have properties in those areas and some of my tenants just take the public transportation to get to work. Happy to help if you have additional questions, feel free to DM. 

    0Reply
  • Cassidy BurnsBusiness Member
    Investor · Alexandria, VA · Member since 2016 · 861 posts · 460 votes
    2y

    Duplex in NE DC. Purchase Price of around $1.1million.  There is one available in Shaw DC that I would suggest available too 

    [email protected]540-960-1507
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  • Mario B.
    Investor · CT · Member since 2017 · 165 posts · 75 votes
    2y
    Quote from @Julie Chen:

    I am interested in buying another primary residence to take advantage of Fannie Mae's 5% down for multi family homes so I can house hack. I am a single female and cannot drive since I grew up in NYC, so I'd like to get suggestions for safe neighborhoods near public transportation. (I tried taking the road test multiple times and it is a work in progress...)

    I'd really appreciate it if you have any suggestions for neighborhoods in:

    - New Jersey, Connecticut, Philadelphia, even upstate NY

    - Seattle area 

    - Washington DC, Virginia, Maryland area 

    - Boston area 

    My budget would probably be under 1.5 million depending on how much rental income I can get. 

    For example: 

    1 million, 3 bedroom home

    P&I is $5,695 (5% downpayment, 6% interest) 

    $3K rental income (assume I can rent out each of the 2 bedrooms left for 1.5K each)

    which leaves me with paying 2,695 which I am comfortable with. 


    Another option is to buy a single family with an in-law suite, it would be less money, better interest rate, and easier to sell in the future.  I live in Stamford and have had really great success.  The Stamford train station was just completely overhauled as well as Norwalk.  If you would like to talk more offline, I would be happy to assist as your resource for CT.   

    0Reply
  • Julie Chen
    OP
    Member since 2021 · 7 posts · 2 votes
    2y
    Quote from @Mario B.:
    Quote from @Julie Chen:

    I am interested in buying another primary residence to take advantage of Fannie Mae's 5% down for multi family homes so I can house hack. I am a single female and cannot drive since I grew up in NYC, so I'd like to get suggestions for safe neighborhoods near public transportation. (I tried taking the road test multiple times and it is a work in progress...)

    I'd really appreciate it if you have any suggestions for neighborhoods in:

    - New Jersey, Connecticut, Philadelphia, even upstate NY

    - Seattle area 

    - Washington DC, Virginia, Maryland area 

    - Boston area 

    My budget would probably be under 1.5 million depending on how much rental income I can get. 

    For example: 

    1 million, 3 bedroom home

    P&I is $5,695 (5% downpayment, 6% interest) 

    $3K rental income (assume I can rent out each of the 2 bedrooms left for 1.5K each)

    which leaves me with paying 2,695 which I am comfortable with. 


    Another option is to buy a single family with an in-law suite, it would be less money, better interest rate, and easier to sell in the future.  I live in Stamford and have had really great success.  The Stamford train station was just completely overhauled as well as Norwalk.  If you would like to talk more offline, I would be happy to assist as your resource for CT.   


     Thanks! I sent you a message to learn more.

    0Reply
  • Julie Chen
    OP
    Member since 2021 · 7 posts · 2 votes
    2y
    Quote from @Bruce Lynn:

    Come to Texas....you can get 2 4plexs for that investment.  They'll probably be newer (built in the last 10 years) and looks like rents will be better.  I would probably expect rent at about $1500-1700/Unit on $400-$450K investment now.


     Which specific areas in TX? 

    0Reply
  • Julie Chen
    OP
    Member since 2021 · 7 posts · 2 votes
    2y
    Quote from @John McDonald:

    Your strategy to utilize Fannie Mae's 5% down for a multifamily home to house hack is a smart move, especially in high-demand urban areas. Given your requirements for safe neighborhoods near public transportation, and considering your budget and rental income goals, here are some specific suggestions:

    1. New Jersey: Look into areas like Hoboken or Jersey City. These areas offer excellent public transportation options to NYC and have a vibrant community. They are popular among young professionals and could provide good rental income.
    2. Connecticut: Stamford and Norwalk are great options. They offer safety, a good quality of life, and access to public transportation, particularly the Metro-North Railroad, which provides an easy commute to NYC.
    3. Philadelphia: Consider neighborhoods like Rittenhouse Square or Old City. These areas are not only safe and pedestrian-friendly but also offer excellent rental potential due to their proximity to major employment centers and cultural attractions.
    4. Upstate NY: Look at cities like White Plains or New Rochelle, which are well-connected via Metro-North to NYC, offer urban conveniences, and have a range of multi-family homes.
    5. Seattle Area: Neighborhoods like Capitol Hill or Ballard in Seattle are excellent choices. They are safe, have a strong rental market due to their proximity to major tech employers, and offer good public transit options.
    6. Washington DC, Virginia, Maryland Area: In DC, consider areas like Capitol Hill or Dupont Circle. In Virginia, Arlington and Alexandria are great options with easy Metro access. In Maryland, Bethesda and Silver Spring are both safe and well-connected.
    7. Boston Area: Neighborhoods like Cambridge, Somerville, or Brookline could be ideal. They are safe, have excellent public transport links, and are in high demand for rentals due to their proximity to universities and tech hubs.

    With a budget of up to $1.5 million, you should be able to find suitable properties in these areas. However, prices and rental incomes can vary, so it's crucial to do thorough market research. Consulting with a local real estate agent who understands the dynamics of house hacking and rental markets in these areas would be highly beneficial. They can provide insights into specific neighborhoods, potential rental incomes, and property values.

    Remember, when calculating your costs and potential income, factor in property taxes, insurance, maintenance, and potential vacancies. This will give you a more accurate picture of your financial commitment and cash flow.


     Thank you so much for this specific and thorough list! Going to research more closely into each one. 

    Yes, that's a good reminder on the other costs associated with purchasing a home!

    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    2y
    Quote from @Julie Chen:

    North Texas....DFW area all the way to Sherman.
    Austin is pretty expensive and rents have not kept up with jump in sales prices.

    North Houston is probably good too, but I don't know a lot about Houston.  

    Lubbock might be worth a look.  Nice prices on homes there, but not sure about rents and quality of renters.

    0Reply
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