Liverpool, NY · Member since 2016 · 4 posts · 0 votes
Hello BP Community,
I am currently getting my real estate license, and I want to move down to Westchester County, NY. Preferably anywhere between the White Plains and Peekskill area. I want to work as a real estate agent after moving from the Syracuse NY area, but I'm worried that I won't be able to afford a place to live down there off of a commission based job in my first year. I am willing to work hard to become a successful full time real estate agent, but I feel as if it will take time.
I also have $180,000 to start with for my first investment property. Is it possible to buy a duplex down in Westchester, and house hack it so that I can live comfortably enough to work on my real estate career for a while. My goal is only having to spend around $500 in mortgage/utilities (considering I have a tenant paying rent in the other half of the house). Is this possible? Or is renting in a cheaper market like in Syracuse a better option?
Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
10y
Of course it's possible! You also have a spectacular amount of money to start off with. I recommend studying the market in that area and hunting for a deal with numbers that suits your needs. $180k Is more than enough for a down payment.
It all depends on the price of the property compared to the rents.
Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
10y
Of course it's possible! You also have a spectacular amount of money to start off with. I recommend studying the market in that area and hunting for a deal with numbers that suits your needs. $180k Is more than enough for a down payment.
It all depends on the price of the property compared to the rents.
Investor · Peekskill, NY · Member since 2015 · 22 posts · 23 votes
10y
I think you will see that trying to house hack in Westchester county and only spending $500 a month is going to be tough, unless you are willing to spend most of your nest egg. Peekskill is one of the cheaper areas in Westchester, but a descent property in a good neighborhood will cost about $250-300k and the taxes will cost you at least $6-7k per year on a multifamily. I live in Peekskill and my taxes are about $8500. The further south you go, the more expensive it gets. Wherever you choose to buy in Westchester I would plan on doubling your monthly out of pocket to about $1k per month.
Liverpool, NY · Member since 2016 · 4 posts · 0 votes
10y
Hey Jeff,
What about Putnam County? I've been looking into areas around there too and they are priced way less than Westchester County. Any experience in that area?
Liverpool, NY · Member since 2016 · 4 posts · 0 votes
10y
Also I am having issues with a mortgage because I have only ever held a part time job (I'm 23) and will be switching to a commission based job. I know that you have to have 2 years of commission income or one year of rental income in order to take out a mortgage. However, I am pre-qualified for a $220,000 mortgage as of right now.
Finding a property for 180k in Westchester will be super tough. You can possibly try to find places that need a tremendous amount of work and are less desirable, but 180k might be the purchase price and 100k might be the amount of work needed. You are right about needing 2 years 1099.
Is that 220k including the 180k or is it in addition to for 400k. That would make a huge difference.
Thinking creatively, how about finding a partner that may not have the money and can be the credit/W2 person, buy a 3 family, and you live in 1 unit and pay rent as it is rented. (Smallest unit if you're single) Or pay someone 1 year upfront of rent since you don't have a steady income as of yet and continue to build until you study the area.
Rental Property Investor · Riverdale, NY · Member since 2014 · 216 posts · 62 votes
10y
Hey @ @
I am actually looking into Duplex-Triplex options in Mt. Vernon, New Rochelle or something close Any ideas? I was planning on having it owner-occupies and get 203K for it. Can you give me an idea what's reasonable for B class neighborhood? Thanks a lot!
That 220k is including an 80k down payment. I wanted to keep the rest as back up reserve money for potential repairs and maintenance on the investment property later down the road.
But paying one year up front of rent is actually a good idea. Because that will give me enough time to learn the market and become an established agent in the area.
I always advise people to get preapproved first. 203k is a great option to try to get a reasonable deal, but once you know where your budget is then you know where you can shop. While New Rochelle and Mount Vernon are great options, property taxes make it tough for peoples budgets. Average prices for Multifamilies in Mount Vernon are about 375k and New Rochelle are about 550k. Feel free to shoot me any questions you may have. Good luck!