Should I house hack in or out of state for my first deal

Question

Can I be honest and say: I am stuck not knowing where to begin/ feeling overwhelmed/analysis paralysis, and not feeling "ready" enough to invest or if I am prepared for the headache of landlording

Defined my goal though: I aim to start by investing in a multifamily house hack in NJ (West NY area) for the close proximity to NY, within the year. I will have that as a home base, trying to aim for young professionals like myself who want to be close to NY for work.

Here's my dilemma: I am torn bc I work remotely and technically can invest anywhere but I would have to stay there over a year to set it up as per the loan reqs. I know if I go out of state and leave friends and fam behind I can do STR, build up equity quicker and pull out to reinvest in my next home, and then buy in NY/NJ region. Not sure what order to do it and if I should make the sacrifice.

My logic is : At least if I start in the more expensive market I can get higher rents, even though STR is illegal in my desired purchase area, even if hosted. Am I right? I feel like Im going crazy lol

Either way I'm looking for preferably off-market, multi-family slight fixer-uppers in West NY and will pull the trigger soon. All leads welcome!!! Let me know how I can support you too! Cheers

William Sing · Answer

Hey @Quiana Berry, For a lot of first-time investors I highly recommend doing something in a place you feel comfortable with and also doing owner-occupied. You can utilize better loan programs (owner occ) and is a lot more forgiving. Areas that appreciate a lot more will also lower your overall risk as long as you can hold on to it in a 5-10 year time frame. It is a good way to use "training wheels" and will give you a better idea of what is needed when you invest out of state. Just my two cents!

Quiana Berry · Answer

Thank you for the advice I never thought of this strategy and I will look into it!

Frank Avallone II · Answer

Hey @Quiana Berry, I was in the same boat when I started out. I would advise starting to look in the areas around you that you are comfortable with. Sounds like friends and family is definitely a strong factor for you which totally makes sense. Have you began talking to anyone in the field in your area? Any realtors you are talking to or other investors? This would be a great way to get more of a understanding about the area you are in from an investment standpoint.

Ecaterina Katerina Morosan · Answer

Given that you're not ready to pick up a job of a landlord, have you ever thought of lending your money to experienced investors for %?

Sebastian Hernandez · Answer

@Quiana Berry Congrats on knowing that you want to get started and doing the analysis and research, definitely have grace with yourself and be proud. Now, in terms of making moves, house hacking is an amazing way to get started because you get to live in your own home and get first hand investing experience by renting out the other unit or units. As you know, you couyld drastically reduce your living expenses/or even cash-flow.

Sounds like the idea of purchasing a property in West New York, NJ would help you get the best of both worlds of house hacking and still being close to the city. @Darcy Reynolds recently helped her client purchase a multi-family home there in west new york nj. Perhaps she would be a good contact for you.

In any event, best of luck!

Should I house hack in or out of state for my first deal

Should I house hack in or out of state for my first deal

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