How Can this be done?

Question

Hello BiggerPockets community! I am a Yonkers resident looking to begin real estate investing. My dream is to offer quality housing for people in my community while building lasting relationships. My community is a very expensive place to live and I don't make a lot of money. Instead of saying I can't, I am asking how can this be done. Any advice would be helpful in starting out!

Nicholas L. · Answer

@Josh Balmer

start with a house hack

Allie McAlister · Answer

Hey @Josh Balmer

Have you considered out of state investing?I've helped lots of clients that are located in NY the are facing the same issues you are to find better opportunities in the Memphis, TN investment market. We have much lower entry points that make cash flow a very strong drawing point to our market. We also have landlord friendly laws and I can get you connected with our boots on the ground team of contractors, lenders, and property management to get you started.

Ken M. · Answer

Inherit the money. Why the focus on material things? If you are broke, you clearly are not "material". Move to where houses are affordable and do your quest there. The Constitution guarantees us the right to move about the country, but it doesn't guarantee we can own houses anywhere we want. That is dictated by your fellow countrymen competing for those resources. Get competitive or move to where it is more mellow.

Grow flowers, it's more satisfying. Rich people get sued.

"No good deed goes unpunished"

Joseph Tadres · Answer

Hey Josh! I love your goal of providing quality housing. In Yonkers, consider house hacking: live in one unit of a multi-family property and rent out the others. You can also look for fixer-uppers to add value and boost cash flow. Creative financing, like owner financing, can make a deal more accessible. Start small, network with local investors, and build as you go.

Tony Bacon · Answer

Find a cheaper neighborhood that you can do it in.

Josh Balmer · Answer

Thank you everyone for your kind and thorough replies. At my stage in the game, my goals are to learn, network, save $. I hope the first two will bear fruit of success later down the road.

Drago Stanimirovic · Answer

Josh, your mindset is spot on. In a high-cost market like Yonkers, start small and think creatively. House hacking with an FHA loan lets you live in one unit and rent the others to cover costs. If cash is tight, consider nearby affordable markets or partner with someone who has capital while you provide local knowledge and management. Build credit, save, and network with local agents and investors so opportunities find you. Each step compounds toward your long-term goal.

Aaron Zimmerman · Answer

I would say house hacking is the best way to get into property and it allows For a low down payment option. Assuming it cash Flows post move, then I would pull the trigger on a multifamily. To boost cash flow, you can rent by the room

Mike Klarman · Answer

So, capital is definitely part of the vision.  Not the only part though.  Right now, you can't check the capital box.  You put that aside.  There's still lots to do and rightly so the capital should be last.  I have been a part of a few start-ups and have run two businesses of my own.  When capital comes first, that's when mistakes happen.  When you can move right away on any idea or project that comes in your head, that can be a bad thing.

Here's a few relationships I would work on:

1) Local politicians - get to know them.  Have a prospectus or business plan put together.  Work on your pitch.  Ask them how you can help them in their re-election.  This costs only time.

2) I'm not sure what your REI education is, but throw yourself into the industry.  Learn how it works.  What makes a good deal.  What are the economics of a REI deal?  BP is a great place to do this research.  REI deals have moving parts.  Each moving part has their own process and timelines.  Become an expert on the process so that you can be the guide for any financing needs.

3) Learn your home market house by house.  Where are the run down/abandon homes.  Or unkept homes?  What is the yearly appreciation rates?  What are the rent rates?  What is the bottom entry point?  The top?  How many houses being sold each month, how many listed?

4) Get the people you are trying to help on your side.  let them know what you want to do for them and why.  get them to sign something committing their support.  When people unite, there's no greater force.

If you get 1,2,3, and 4 in order and you cant find the money, I'd be shocked.

How Can this be done?

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