Updated over 7 years ago on . Most recent reply
Location for First HouseHack
I am formulating a five year plan that involves my first purchase being a househack. However, I live in Brooklyn, NY and need to stay nearby for work. I am hesitant to invest near NYC because of the ROI and eviction laws. Of course finding the right deal makes everything great, but it seems to be a long shot here. Would anyone like to weigh in on if I should alter my plan?
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Let me give you a background about how I acquired my SFR to give you some perspective. When I finally decided to get a rental property in my hometown of Allentown, I was dead set on getting a multifamily because of the basic logic of if one tenant does not pay on time at least the other one will. However, I came to a sharp realization of how competitive the multifamily market is here. I was getting outbid left and right.
Finally, feeling discouraged, my wife suggested I look for a SFH which I can turn into a rental. I was apprehensive at first because that just mean one tenant and if they don't pay, I am SOL. I looked anyway and found a great 4/1 house with parking and laundry being sold by the original owner. Closed within a month. We thought we would have to wait nearly another month before finding a tenant. That was not the case. The minute my wife placed the property on Facebook Marketplace and Craigslist, our phone couldn't stop ringing. My fears about vacancies with SFH quickly dissipated.
What I had analyzed from my experience is that 1) People, especially those with family would prefer to rent a whole house where they don't have to deal with other tenants above or below them 2) Families, especially those with kids don't like to move every other year, so they are more likely to behave when it comes to rent payments 3) If you provide amenities that are not easily available in other properties in that neighborhood like washer/dryer, parking or more than 3 bedrooms, you can stand to charge an above average rent because you are supplying convenience.
So to answer your question, demand for housing is just as high as New York or even greater. Due to that demand you have an easier pick of the litter.