Purchasing First Multi-Fam Home In The Big Apple!!

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Purchasing First Multi-Fam Home In The Big Apple!!

Marvell Martin
Member since 2025 · 5 posts · 2 votes

Hi All! 

NYC is expensive as we all know. I currently rent in queens, and I am in the process of beginning the home buying process. I am looking for a duplex or triplex where I live in one of the units, and rent out the others. 

However, I run an online business, so I do not really have any location constraints. I would like a sub-100k down payment+closing costs.

Goals

1. Reduce out of pocket living expense for this year (Sub $1475 which is my current half of the rent).

2. Live here for a year, and then repeat with a new property. 

I am fine with options in other states. So what do you guys think? Should I focus on NY, or out of state? What is it like being a landlord in NY? Should I avoid it? Do other states have better markets? 

Once again, the main concern is a decreased living expense, but I also want to purchase in an area with long term appreciation potential. Thanks for the guidance!!

1Reply
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Jack Pasmore
Specialist · Member since 2025 · 41 posts · 18 votes
1y

Hey @Marvell Martin ,

You're thinking along the right lines by house hacking a duplex or triplex! Given your goals of minimizing living expenses and setting yourself up for future investments, here are a few things that I'd consider:

NYC vs. Out of State

  • NYC Challenges: High property prices, strict landlord-tenant laws, and heavier taxes. While appreciation is strong in some areas, cash flow is typically lower compared to other markets.
  • Out-of-State Benefits: You can find better cash-flowing properties with lower entry costs. Cities in the Midwest and Southeast (like Indianapolis, Cleveland, or parts of Florida) offer lower purchase prices, better rent-to-price ratios, and more landlord-friendly laws.

House Hack in NYC?

If you stay in Queens or look at the Bronx, you might find a duplex/triplex, the key question is whether your rental income offsets enough of your expenses to meet your $1,475 target or not.

Out-of-State Options

You mentioned no location constraints—this opens up many landlord-friendly markets with properties in the $250K-$400K range where a 3.5%-5% down payment keeps you at a low entry cost. These markets also allow you to repeat the strategy more affordably and frequently.

Being a Landlord in NY

On the other hand, NYC has some of the most tenant-friendly laws in the country, making evictions and rent increases harder. If reducing your out-of-pocket cost is your top priority, it may not be the best choice for your first investment.

Final Thoughts

If appreciation is a priority, NYC has historically been strong, but it's not as easy to cash flow. If you want a better balance of cash flow and appreciation, consider landlord-friendly markets out of state. House hacking is a great strategy—just make sure you run the numbers carefully to hit your goals.

Would you be open to looking at specific markets that fit your criteria? I'd love to connect. I'm always happy to help! Feel free to reach out at any time.

Jack

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  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    1y

    Welcome to the BP forum, @Marvell Martin!

    Its good to know that you have the flexibility to move elsewhere. NY is definitely expensive. We are also based in Queens (Astoria), and in this area, the average sale price for 2-4 unit properties is nearly $400K more than the rest of Queens.

    If you did decide to target the local market, I would aim for properties at or below $1,200,000 which is the median pricepoint for Queens and Brooklyn. 

    The best opportunities for cash flow, lowering your current living expenses, AND staying below the median/average price points will be in the Bronx and Westchester. There are options in BK, Queens, and Long Island, but fewer options are available compared to BX and Westchester. If you're looking to lower living expenses, try to prioritize properties with ADUs or other potential income sources.

    Whether or not you decide to focus on NY vs. OOS will depend on your short- and long-term goals. You will find more positive monthly cashflow properties in other states (or Upstate NY), BUT the annual appreciation here in NY is much stronger.

    Landlording in NY is not for the faint of heart. Evictions here can take longer than in neighboring states (i.e. NJ and CT). 
    That said, successful NY landlords usually do the following:
    - Implement a process for pre-screening and thorough screening of tenants
    - Use tenant applications and collect as much vital information as possible i.e. credit reports, past landlord references, professional/personal references, financial documents, etc.
    - Set expectations and share unit rules prior to the application process to weed out disinterested tenants
    - Deliver notices (notice to comply, late payment, 30-90 day notices, etc.) expeditiously. In other words: Don't give anyone time to give you a sob story, instead, get your attorney or property management company involved in delivering notices immediately.

    All the best!

    Abel

    REbuild Team - eXp Realty5234 Reviews
    WebsiteView Page
    1Reply
    • Marvell Martin
      OP
      Member since 2025 · 5 posts · 2 votes
      1y
      Quote from @Abel Curiel:

      Welcome to the BP forum, @Marvell Martin!

      Its good to know that you have the flexibility to move elsewhere. NY is definitely expensive. We are also based in Queens (Astoria), and in this area, the average sale price for 2-4 unit properties is nearly $400K more than the rest of Queens.

      If you did decide to target the local market, I would aim for properties at or below $1,200,000 which is the median pricepoint for Queens and Brooklyn. 

      The best opportunities for cash flow, lowering your current living expenses, AND staying below the median/average price points will be in the Bronx and Westchester. There are options in BK, Queens, and Long Island, but fewer options are available compared to BX and Westchester. If you're looking to lower living expenses, try to prioritize properties with ADUs or other potential income sources.

      Whether or not you decide to focus on NY vs. OOS will depend on your short- and long-term goals. You will find more positive monthly cashflow properties in other states (or Upstate NY), BUT the annual appreciation here in NY is much stronger.

      Landlording in NY is not for the faint of heart. Evictions here can take longer than in neighboring states (i.e. NJ and CT). 
      That said, successful NY landlords usually do the following:
      - Implement a process for pre-screening and thorough screening of tenants
      - Use tenant applications and collect as much vital information as possible i.e. credit reports, past landlord references, professional/personal references, financial documents, etc.
      - Set expectations and share unit rules prior to the application process to weed out disinterested tenants
      - Deliver notices (notice to comply, late payment, 30-90 day notices, etc.) expeditiously. In other words: Don't give anyone time to give you a sob story, instead, get your attorney or property management company involved in delivering notices immediately.

      All the best!

      Abel


       Hi Abel. I agree, screening would be extremely important. Would you say NY is the most tenant friendly state?

      0Reply
  • Jack Pasmore
    Specialist · Member since 2025 · 41 posts · 18 votes
    1y

    Hey @Marvell Martin ,

    You're thinking along the right lines by house hacking a duplex or triplex! Given your goals of minimizing living expenses and setting yourself up for future investments, here are a few things that I'd consider:

    NYC vs. Out of State

    • NYC Challenges: High property prices, strict landlord-tenant laws, and heavier taxes. While appreciation is strong in some areas, cash flow is typically lower compared to other markets.
    • Out-of-State Benefits: You can find better cash-flowing properties with lower entry costs. Cities in the Midwest and Southeast (like Indianapolis, Cleveland, or parts of Florida) offer lower purchase prices, better rent-to-price ratios, and more landlord-friendly laws.

    House Hack in NYC?

    If you stay in Queens or look at the Bronx, you might find a duplex/triplex, the key question is whether your rental income offsets enough of your expenses to meet your $1,475 target or not.

    Out-of-State Options

    You mentioned no location constraints—this opens up many landlord-friendly markets with properties in the $250K-$400K range where a 3.5%-5% down payment keeps you at a low entry cost. These markets also allow you to repeat the strategy more affordably and frequently.

    Being a Landlord in NY

    On the other hand, NYC has some of the most tenant-friendly laws in the country, making evictions and rent increases harder. If reducing your out-of-pocket cost is your top priority, it may not be the best choice for your first investment.

    Final Thoughts

    If appreciation is a priority, NYC has historically been strong, but it's not as easy to cash flow. If you want a better balance of cash flow and appreciation, consider landlord-friendly markets out of state. House hacking is a great strategy—just make sure you run the numbers carefully to hit your goals.

    Would you be open to looking at specific markets that fit your criteria? I'd love to connect. I'm always happy to help! Feel free to reach out at any time.

    Jack

    2Reply
    • Marvell Martin
      OP
      Member since 2025 · 5 posts · 2 votes
      1y
      Quote from @Jack Pasmore:

      Hey @Marvell Martin ,

      You're thinking along the right lines by house hacking a duplex or triplex! Given your goals of minimizing living expenses and setting yourself up for future investments, here are a few things that I'd consider:

      NYC vs. Out of State

      • NYC Challenges: High property prices, strict landlord-tenant laws, and heavier taxes. While appreciation is strong in some areas, cash flow is typically lower compared to other markets.
      • Out-of-State Benefits: You can find better cash-flowing properties with lower entry costs. Cities in the Midwest and Southeast (like Indianapolis, Cleveland, or parts of Florida) offer lower purchase prices, better rent-to-price ratios, and more landlord-friendly laws.

      House Hack in NYC?

      If you stay in Queens or look at the Bronx, you might find a duplex/triplex, the key question is whether your rental income offsets enough of your expenses to meet your $1,475 target or not.

      Out-of-State Options

      You mentioned no location constraints—this opens up many landlord-friendly markets with properties in the $250K-$400K range where a 3.5%-5% down payment keeps you at a low entry cost. These markets also allow you to repeat the strategy more affordably and frequently.

      Being a Landlord in NY

      On the other hand, NYC has some of the most tenant-friendly laws in the country, making evictions and rent increases harder. If reducing your out-of-pocket cost is your top priority, it may not be the best choice for your first investment.

      Final Thoughts

      If appreciation is a priority, NYC has historically been strong, but it's not as easy to cash flow. If you want a better balance of cash flow and appreciation, consider landlord-friendly markets out of state. House hacking is a great strategy—just make sure you run the numbers carefully to hit your goals.

      Would you be open to looking at specific markets that fit your criteria? I'd love to connect. I'm always happy to help! Feel free to reach out at any time.

      Jack


      Hi Jack. Yes, NY definitely is very tenant friendly. Perhaps OOS is a good route for me considering my circumstances.

      Another thing I have noticed Is that many of these duplexes have a basement with a separate entrance. Is it legal for the landlord to occupy these spaces? If so, that is a big help.

      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Marvell Martin have you been pre-approved by a lender yet?

    If you are self-employed, this may be a challenge.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    1Reply
    • Marvell Martin
      OP
      Member since 2025 · 5 posts · 2 votes
      1y
      Quote from @Drew Sygit:

      @Marvell Martin have you been pre-approved by a lender yet?

      If you are self-employed, this may be a challenge.


      Hi Drew. No, I have not been pre-approved yet. I am waiting for my this billing cycle to end for my bank statements to be released because I recently switched banks.

      I have spoken to mortgage brokers though, and with my records/cosigner, hopefully I should not have any issues.

      I should be sitting down with the brokers in about a weak. Have you had any similar experiences?

      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Marvell Martin if you're getting a cosigner and putting less than 10%-20% down, you'll need to go FHA.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    1Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    1y

    Hi @Marvell Martin house hacking is great way to go, under $100K down payment tends to be fairly easy. I have clients buying $million MFR for under $100k down payment. I would recommend New Jersey. Very close access to NYC and extremely favorable owner occupied rental laws. My wife and I have been house hacking for over a decade and have yet to miss a single payment of rent across our properties, NJ gets a bad rep as being not landlord friendly but believe it or not it is a town by town thing. Knowing the right towns, with more favorable laws allows for huge rent increases and very desirable tenants with very little government intervention. House Hacking NJ got us to Fi in about 5 years, best part is if you are open minded to different strategies, ones that are very easy for house hackers to implement, finding deals that hit the 1% Rules and higher are possible even in todays market. I have multiple clients that hit over 1% this past year.

    973-975-3895
    House Hacking New Jersey563 Reviews
    WebsiteView Page
    1Reply
    • Marvell Martin
      OP
      Member since 2025 · 5 posts · 2 votes
      1y
      Quote from @Shawn Mcenteer:

      Hi @Marvell Martin house hacking is great way to go, under $100K down payment tends to be fairly easy. I have clients buying $million MFR for under $100k down payment. I would recommend New Jersey. Very close access to NYC and extremely favorable owner occupied rental laws. My wife and I have been house hacking for over a decade and have yet to miss a single payment of rent across our properties, NJ gets a bad rep as being not landlord friendly but believe it or not it is a town by town thing. Knowing the right towns, with more favorable laws allows for huge rent increases and very desirable tenants with very little government intervention. House Hacking NJ got us to Fi in about 5 years, best part is if you are open minded to different strategies, ones that are very easy for house hackers to implement, finding deals that hit the 1% Rules and higher are possible even in todays market. I have multiple clients that hit over 1% this past year.

      Wow that is amazing brother. I am going to check out your YouTube channel!
      1Reply
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