Should I invest where I live in Ny or outside of state?

Question

I’m new to investing and i’m stuck between a rock and a hard place. I make on average $9k a month and my biggest expense is my rent which is $1650 in a studio apartment that’s a section of the house I live in on Long Island. I have access to my VA loan as i’m in the Air Force and also have a 60% disability rating. I originally was thinking about getting into a house hack here but i’m not sure if it would make more sense to buy outside of state. I am a little scared because i’ve never invested in real estate yet. I also don’t have the best credit score either. i’ve made stupid mistakes in the past and now i’m paying for it. My score is a 670. By next month i’ll have around $47k saved. What should I do? I’m in the process of getting my credit repaired but that’ll time a few months too. any thoughts?

Anthony Abruzzo · Answer

Hi Greg, fellow vet here that grew up on the island! I'd say before all else, if you're considering investing in the near future, would be to start with speaking to a lender. From there you may be able to get a better picture of what path you want to go down with doing a house hack, investing out of state, or continuing to rent. You may even want to consider investing in-state but away from the city and LI where the home prices are less intimidating.

If you were planning to use a VA loan, somethings you may want to consider is that it will need to be your primary residence for at least one year I believe; so you cant use it on an out of state investment unless you anticipate that you'll be living in it. The VA loan also doesn't have a minimum credit score requirement. As someone who has used a VA loan in the past, it worked very well for us.

NYS also has many first-time homebuyer programs that you may want to look into as well.

If you want, I can get you in touch with a lender I used here in NY that may be able to help you in determining your next move.

Alan Asriants · Answer

House hacking is definitely a great place to start and talking to a lender or someone else mentioned on this thread is the number one thing to do because that's gonna determine what you can afford and if you can afford in your local market. Once you know what your preapproval amount is, then you can determine if it makes sense for you to buy in your area if it is not and that makes sense because New York is very high priced. I would try to consider a location that is as local as possible, but my offer easier barrier to entry regarding the price, but that doesn't mean that you should sacrifice on the location of the property. Maybe some thing further into Long Island costs a little bit less than closer to the city. I wouldn't be so quick to jump into a completely different state that you are not familiar with it real estate investing is new to you going out of state in a market that you know nothing about is the riskiest thing that you can do in my opinion. The only way that I would invest out of state is if I have spent a lot of time in that location and know the area just as well as my homebase. Good luck!

Remington Lyman · Answer

I think doing a house hack is the best way to get started with real estate investing. That is what I did in 2017

Elealeh Fulmaran · Answer

You’re in a strong spot—steady income, VA loan access, solid savings, and you’re thinking ahead. Two moves: get prequalified with a VA‑savvy lender to see what a 2–4 unit house hack looks like with your score and disability benefits, and tighten a local vs. out‑of‑state buy box so you can compare cash flow, commute, and PM needs side by side.

Are you leaning toward living in a small multifamily on Long Island, or would you rather use the VA loan in a cheaper market and let a PM run it while you stay put?

Shuff Mauldin · Answer

@Greg Phillips the mistakes should make you better going forward. As @Anthony Abruzzo said, get with a lender you like and trust, learn everything you can, and then never stop.

Staying in tune with what lenders want to see—and which asset classes they’re leaning into—will help you set your long-term direction while making better short-term decisions along the way.

Frankie Vozzi · Answer

Great question, Greg  and congrats on being ready to take your first step into investing. Since you’re debating NY vs. out-of-state, it really comes down to what fits your budget, risk tolerance, and how hands-on you want to be. With around $47K saved and a 670 credit score, you actually have options.You can absolutely start in NY or look out of state  what matters most is finding a market with stable rents, good demand, and numbers that make sense for you. I sent you a Dm happy to help!

Kerlous Tadres · Answer

@Greg Phillips, I’d recommend using your VA loan to house-hack locally first, even if it’s just reducing your rent and building equity; it’s the safest confidence-building move. Your credit score won’t stop you. Once you learn from that first property, you’ll be in a much better position to expand out of state.

Caleb Brown · Answer

As others mentioned using your VA for a house hack would be a good idea. Speak to a lender. See where you are at. Whether that's you can go now or saving more/building your credit up. With VA it's 100% financed so the cushion you have can be an emergency fund. I would try and stay local before venturing out of state. If you can house hack that'll get you in the door, reduce your living expenses and then when you move out you can cashflow. Not sure numbers wise how expensive things are there so take that into account too. I would also attend local meet ups, soak up all the knowledge you can.

Min Zhang · Answer

Thanks for sharing, Greg! You’re in a much better spot than you think. Saving $47k, earning $9k a month, and having access to a VA loan already gives you multiple good paths.

A house hack near you could work if you want to keep things simple and stay local. Buying out of state can make the numbers a lot easier, especially in more affordable midwest markets. Both options are valid; it just depends on whether you prefer staying close or prioritizing cash flow.

Your credit score won’t hold you back too much, and it sounds like you’re already improving it. The fear is normal for a first investment since everyone starts there. Happy to keep the conversation going!

Should I invest where I live in Ny or outside of state?

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