Newbie from NYC trying to figure it out and find guidance

19 Replies

Hey Guys! I just wanted to start off by saying that the amount of information that I've received just off this site alone is golden. I'm so grateful to have had the opportunity to find Biggerpockets and i'm looking forward to connecting with you guys. I always had an interest in real estate (buy and hold). It's not until recent while shopping for a house I could say I finally made the decision to move forward  and follow my dreams. I'm taking online classes at NYREI and the plan is to get my license by the end of the summer. 

Unfortunately I have applied to several banks for pre-approvals and my max is $400,000. What multi family house can I get in Queens or Long Island for $400,000?! I'm 25 years old making decent money at $70,000 but they're saying that isn't enough. Is there better banks out there that would give me a higher quote? My short term plan is to house hack while my long term goals are to buy out of state properties in the Midwest and create passive income. I'll definitely be documenting my progress along the way. Looking forward to growing and being apart of this community :)

Hey Daniel,

I feel your pain as a fellow NYC resident. If you absolutely must own your home right away as a young person probably you will have to look in the boonies or way out in the suburbs which may or may not be feasible with your current job. 

So what are your dreams? Getting a real estate license has nothing to do with being a real estate investor, but they can compliment one another well if you plan it out right. I hope you're also talking to a CPA. If you're also looking at residential mortgages on top of that my word of caution is just don't get bogged down in shiny object syndrome. Invest in your education first before you rush out and spend a lot of money on courses and and all of that because this city has a lot of needless distraction if you don't have focus. 

Good luck! 

Hey Daniel,

Its good to see another New Yorker getting value from Bigger Pockets. Great site, incredibly helpful people and content like no other place out there!

Sounds like you have a solid strategy! 400K for a MFR is very difficult to find anywhere in the boroughs or LI unless you're paying cash and/or can deal with additional issues on the property- i.e. non-cooperative tenants, poor property condition, liens, violations, open permits, etc.

Another option could be finding a partner to co-sign on the loan with you. Preferably someone with a similar vision. This will get you to a realistic price-point and you'll also be able to split expenses with your partner. Of course, you'd own half the deal (depending on your agreement) but 50% of 1 deal is better than 100% of no deal!

Keep doing your thing!

Abel

Hi @Daniel D. , congrats on joining and learning!  $400k may not be much in the 5 boros, but there are definitely properties in those price ranges.  Is there a reason you're focused on Queens & LI? Is that where your work is?

You should also look into Yonkers, New Rochelle, and some of the Jersey river side towns.

Best of luck in your search!

If several banks have told you a budget of 400k then it's not likely you'll find one that will go significantly higher. You're limited by your income and what you have in cash for downpayment and post close. The banks don't want you spending more than a certain percentage of your income on housing. Having said that, if you're looking in western parts of Queens and into Long Island then you should be able to find 2 family homes in your price range (and most of them need hacking). As Scott Wolf mentioned, depending on where you need to commute to, Jersey City, Bayonne, and other Hudson county cities might work out better for you. 

@Daniel D. Hi Dan! I am actually in a similar boat. I work in Jersey City and will start to look for a house-hack myself soon. I just bought an out of state property thIs past spring and I am a licensed realtor in NJ. DM me if you want to link up!

 @Josane Cumandala

Hey Josane, Yea tell me about it, the COL is so high it makes it difficult to find homes in ideal locations especially if you're doing it alone. My dream is to buy and hold multiple properties to generate passive income. I hear the success stories about people retiring at 40 traveling the world sipping margaritas enjoying life. I want that, the vacations the margaritas everything lol. I'm young so that's an advantage on my part. I definitely agree with the concept of investing in my education. I've been reading tons of books and watched most of the podcasts. But they're still a whole bunch of stuff i don't know. Honestly the reason why i'm taking the course is because of my girlfriend. We share the same interests, the only difference is unlike me she wants to become a real estate agent. So i figured whats the harm i'll take the class and i'll benefit by gaining direct access to the MLS. Having my real estate license would be a personal accomplishment for me because i'll know that i had a goal and i got something out of it. And i guess it would push me to continue to strive for more and further solidify that i'm on my way to my dream a step at a time.

@Abel Curiel

Hey Abel, Likewise its good seeing people from around the way all with the same aspirations that you can connect with and build. That's a good idea! That's something I've thought about especially with me and my girlfriend but i don't know if were ready for that just yet. I figured maybe i could house hack a single family by living in the basement and renting the top floor. 

Originally posted by @Daniel D. :

 @Josane Cumandala

Hey Josane, Yea tell me about it, the COL is so high it makes it difficult to find homes in ideal locations especially if you're doing it alone. My dream is to buy and hold multiple properties to generate passive income. I hear the success stories about people retiring at 40 traveling the world sipping margaritas enjoying life. I want that, the vacations the margaritas everything lol. I'm young so that's an advantage on my part. I definitely agree with the concept of investing in my education. I've been reading tons of books and watched most of the podcasts. But they're still a whole bunch of stuff i don't know. Honestly the reason why i'm taking the course is because of my girlfriend. We share the same interests, the only difference is unlike me she wants to become a real estate agent. So i figured whats the harm i'll take the class and i'll benefit by gaining direct access to the MLS. Having my real estate license would be a personal accomplishment for me because i'll know that i had a goal and i got something out of it. And i guess it would push me to continue to strive for more and further solidify that i'm on my way to my dream a step at a time.

I see. Well I'm glad that you have a partner who supports your endeavors and shares your goals of financial freedom! I will say this though as a former real estate salesperson...It's a full time job. Are you looking for an investment or a job? There is no MLS for NYC, Streeteasy is the name of the game and it's public-facing and free for users (not free for agents). For CT and NJ yeah it might help. But just know there are more liabilities for you if you engage with public as a real estate licensee. If you're good at it though and you can make it as an agent and investor the real estate professional designation is sweet for taxes. :)

@Scott Wolf  

@Jason Lee

Thanks for the best wishes! I'm very excited to start this new journey. I live in Brooklyn but Queens and Long Island are my top choices because they're closer to home and more affordable. I work in the city so Bergen County and Yonkers  makes sense commute wise. I'll definitely look into them more.

@Daniel D.

Thanks! I invested in Binghamton NY but was also considering Syracuse and some areas in PA. I had been researching and studying for a few years before finally pulling the trigger but definitely a good decision. 

Awesome!

Originally posted by @Daniel D. :

@Abel Curiel

Hey Abel, Likewise its good seeing people from around the way all with the same aspirations that you can connect with and build. That's a good idea! That's something I've thought about especially with me and my girlfriend but i don't know if were ready for that just yet. I figured maybe i could house hack a single family by living in the basement and renting the top floor. 

Another solid strategy and idea. However, I'd connect with a CPA about this since purchasing a SFR w/ FHA will not be considered an investment property and therefore won't have the tax benefits of a MFR.

Also, your pre-approval amount will drop if you consider purchasing a SFR. If you were pre-approved for 400K for a MFR, that means the lender likely factored in 75% of the rental income and tacked that onto your income.

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