How to get a loan for expensive NYC Apartment to "House Hack" ?

5 Replies

I'm curious about this. As someone pointed out, the req. here is often that you make 80x more than the monthly payments would be. I only make 50k before taxes and I'm single.  I would like to "house hack," and rent rooms in a decently popular area, while living in the space myself. I would need a massive loan. How to get this? 

Also what kind of strategy is best for this scenario? I was thinking I should aim to have a few months to a year in mortgage payments saved up to account for time finding tenants and then time to sell the property if it doesnt work out. 

This would be a few years from now, as I need to save more, but I'm very interested.

You're going to need to find a way to increase your income or partner with someone. I have no idea of the price point you're looking at... but know you're going to need about 4% down, somewhere around 2% for closing, and probably few months cash for reserves of whatever it is your looking for.

Hi Angelica. I’m i. NYC too and looking to partner with someone on investment deals. Can we connect?

Hi Angelica, I'm a realtor in NYC. For renting you typically need to make 40-50x the monthly rent. For owning most lenders will let you use 40-45% of your gross income on housing payments (mortgage, tax, common charges/maintenance) though I wouldn't recommend going that high. If you're looking at co-ops then most will want your housing payments to be below 28-30% of your gross income, and your total debt (housing, credit cards, loans, etc) under around 33-35%. Keep in mind co-ops will usually want you to have more post close liquidity too so while they tend to be priced lower than condos, they aren't necessarily more affordable. They're also usually much more strict when it comes to sublets so if you're planning to "hack" you have to take that into consideration. Since in the co-op you are technically under a proprietary lease you can, by law, have a roommate. Let me know if you have any other questions.

@Angelica Rose you also have the option to purchase an HDFC apartment. There are income limits on these apartments. Rarely are you allowed to sublet but you can house hack. The challenge from there is finding a 2BR apartment that makes sense as an investment. Cap rates and ROI are hard to come by in NYC. I haven't seen any deals thus far that would make sense for me to invest in.

One thing to consider is....Can I reduce your housing costs vs Can I make money investing in New York. You may not achieve ROI but you can reduce your housing costs relative to renting or living on your own. NYC apartments hold their value really well. Especially if you get in at the HDFC price point. If you have questions let me know.

Remember to factor in monthly maintenance fees. 

Originallyy posted by @Michael Baker :

@Angelica Rose you also have the option to purchase an HDFC apartment. There are income limits on these apartments. Rarely are you allowed to sublet but you can house hack. The challenge from there is finding a 2BR apartment that makes sense as an investment. Cap rates and ROI are hard to come by in NYC. I haven't seen any deals thus far that would make sense for me to invest in.

One thing to consider is....Can I reduce your housing costs vs Can I make money investing in New York. You may not achieve ROI but you can reduce your housing costs relative to renting or living on your own. NYC apartments hold their value really well. Especially if you get in at the HDFC price point. If you have questions let me know.

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