Updated 5 months ago on . Most recent reply
NYC Rookie Investor looking for advise
Good day BP community. I'm here to network and grow my portfolio. Im house hacking in NYC and planning to get a HELOC to invest in the next 2-3 unit property. Currently I'm renting to friends so the stress and risk of non payment is minimal.... wondering if any NYC investors could share their strategies to mitigate these risks. I've heard some horror stories.
Most Popular Reply
Morning Marisa! My advice as a loan officer is once you stabilize that next property with tenants, you might want to look into a DSCR (Debt Service Coverage Ratio) loan for the refinance or long-term financing piece. Instead of qualifying based on your personal income or DTI, the lender looks at whether the rent covers the new mortgage payment. It's a great way to keep acquiring properties without running into income limits, especially in higher-cost markets like NYC.
As for tenant risk, solid screening and clear leases go a long way — even when renting to friends. And if you ever move out and rent all the units, the DSCR route makes it easier to keep financing future deals based on property performance instead of your paystub.
Keep up the good work!