New to House Hacking: Seeking Tips for Building a Custom Duplex in Long Island, NY!

Long Island, New York
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New to House Hacking: Seeking Tips for Building a Custom Duplex in Long Island, NY!

Sean Mills
Member since 2024 · 5 posts · 2 votes

Hello BiggerPockets Community!

I'm new here and excited to dive into the world of house hacking. My partner and I live in Long Island, both in our mid and late 20s, and we work in tech. Our household income is currently $320k pre-tax, but I might be getting a new job soon, which could bump our income to around $380-400k pre-tax.

Initially, we planned to buy a property and convert it into a duplex, but with houses in our area starting at $650k, we've started considering a different approach. After researching, we found that converting a single-family home into a duplex could cost around $200-300k. Because of this, we're now thinking about buying land and building a duplex from the ground up. This way, we can customize it to our needs and preferences.

Our goal is to live in one half and rent out the other for about 7-10 years, then move on to building our "dream home."

I'm here to learn from all of you and get insights into house hacking, especially with new construction projects. Any advice or tips would be greatly appreciated!

Looking forward to connecting with everyone

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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
2y

Welcome. Thoughts of building are often much better in theory than practice. Unless either of you are in construction, why are you thinking conversion or build instead of renovating an existing multifamily to get the increased equity that way.

Very few areas are pro going from one to two units and zoning is the major issue. Building in Long Island means finding affordable land, which should be very slim.

If you want to do value add for house hacking, your first try should be on an existing two-family that is not in great shape that you can learn to renovate. Your income is very solid, but you don't want to add dead weight to your earnings by going too big, too soon.

[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y

    Welcome. Thoughts of building are often much better in theory than practice. Unless either of you are in construction, why are you thinking conversion or build instead of renovating an existing multifamily to get the increased equity that way.

    Very few areas are pro going from one to two units and zoning is the major issue. Building in Long Island means finding affordable land, which should be very slim.

    If you want to do value add for house hacking, your first try should be on an existing two-family that is not in great shape that you can learn to renovate. Your income is very solid, but you don't want to add dead weight to your earnings by going too big, too soon.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    1Reply
  • Sean Mills
    OP
    Member since 2024 · 5 posts · 2 votes
    2y
    Quote from @Jonathan Greene:

    Welcome. Thoughts of building are often much better in theory than practice. Unless either of you are in construction, why are you thinking conversion or build instead of renovating an existing multifamily to get the increased equity that way.

    Very few areas are pro going from one to two units and zoning is the major issue. Building in Long Island means finding affordable land, which should be very slim.

    If you want to do value add for house hacking, your first try should be on an existing two-family that is not in great shape that you can learn to renovate. Your income is very solid, but you don't want to add dead weight to your earnings by going too big, too soon.


     Completely understand. My initial reason for wanting to do a new consutrcution was because duplex/multifamilies in my area or close to it are around 800k. I guess I am unsure on which would make the most sense to do on paper cost wise. 

    - Buy an already existing duplex and do a rehab
    - Buy a lot/foreclosure and do a new construction

    The real end goal of the duplex is not necessairly profit, but to give my side of the duplex to my mother when I move out so if I did do a rehab, I do see myself putting more money into it to make sure it is near the best it could be. If that makes sense

    Thanks again for the advice/info, I appreciate it 

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y

    Definitely buy an existing to start. Your income definitely shows you could do a new build, but if you are a first-time builder, finding land, construction costs, and managing a new build will be way out of your zone of genius, especially if you both work busy jobs.

    To get value add, you can look for a multi that has really good space/bones, but needs upgrading so you can live in a really nice place and create a second nice space for rent/family.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    1Reply
  • Roberto Rohann
    Member since 2022 · 20 posts · 9 votes
    2y

    Hey I’m assuming you want a GC to run the whole build. Not necessarily to organize the building of the home yourself ? Maybe you can reach out to realtors who recently sold new construction in your target area and see if they can connect you with builders. 

    I also understand the frustration because a lot of existing duplexes are being sold for top dollar while essentially needing full renovations. The end cost seems to come close to what a new build would cost anyhow 

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