New to Real Estate - NYC & Philadelphia

[Raquel Reed]

Hi Everyone!

I've been listening to Bigger Pockets for about a year now and excited to join the community. I live in the Bronx, NY but my goal is to own an investment property in Philadelphia by the end of this year. I've been looking into going with the route of section 8 (or housing choice voucher). Looking to make connections with property owners in NY and Philly for meet ups as well! Excited to learn more about home ownership with you all.

[Abel Curiel]

Hello @Raquel Reed,

Welcome to the BP Community!

With your first investment, you want to try and minimize risk as much as possible. I agree with many of @Alan Asriants' points, especially when considering OOS Sec. 8 investing.

A lower price point or smaller investment doesn't always mean low risk.

House-hacking locally could be a better transition depending on your goals and situation.
Many investors in NY like the idea of house hacking because:

- They can invest with a low down payment (similar to what a 20% down payment would be OOS)
- They gain hands-on acquisition, project management, and property management experience. This experience can help you scale your portfolio over the next few years
- Local properties appreciate faster, which allows investors to reinvest their equity into more local multifamily units OR other markets where the cost per unit is lower (i.e., Philly, Upstate NY, etc.)

The Bronx is arguably the best borough to consider the househack strategy. Manhattan, Brooklyn, and Queens all have an average sale price of over $1M for 2-4 unit properties. 

Bronx 2-4 family properties sell for an average of $876,000 (~$45K down payment) and values are up 6.1% from '23 to '24. 

If you're willing to move to Philly, I'm sure you can find similar success with even less $ out-of-pocket.

All the best to you on your journey!

Abel