NYC House Hack or Upstate Buy & Hold Stack?

[Christopher Cole Carcich]

Greetings BP Fam!

I am a newbie looking for advice (and local connections) for my long awaited entrance into REI.

Some backstory:

I am a NYC native, my fiancé & I are both employed with good pay in the film & tv business. We often work long hours (60hr weeks) but also have the opportunity to sometimes work a flexible schedule. Our current apartment is very cozy/convenient, but with our additional storage, totals almost $3000/month. Despite the big city rents, the proximity to our work & family is fundamental to our quality of life-meaning we cannot stray far..

These current mortgage rates are putting serious pressure on me to finally get some skin in the game, but I’m paralyzed with the following conundrum:

-do I House Hack a Queens deal with a HUD/203k or Homestyle fixer upper putting 5-10% down

(I’m in no rush to move & can wait for the right deal to make it work)

-or do Buy & Hold/BRRRR somewhere up the river, where I may be able to put 20% down on a multifamily in a sustainable market?

Things to consider:

-NYC appreciation history, forced equity with 203k/Homestyle fix, Replacing my high rent with a mortgage (that tenants help), fixer upper experience with the rehab, proximity to work & family, MIP until refinance, ability to HELOC down the line

vs

-avoiding/limiting exposure to MIP & generating potentially more cash flow, possible need for PM, still paying my rent but maintaining my quality of life, still getting landlord/rehab experience but in a dependable market upstate.

Any and all insight, suggestions, tips, referrals & recommendations would be greatly appreciated!

Whatever happens, it’s happening!

Thanks in advance. I look forward to hearing from, networking with, and maybe even doing business with you! Cheers, CHRISTOPHER

[Abel Curiel]

Originally posted by @Christopher Cole Carcich:

Greetings BP Fam!

I am a newbie looking for advice (and local connections) for my long awaited entrance into REI.

Some backstory:

I am a NYC native, my fiancé & I are both employed with good pay in the film & tv business. We often work long hours (60hr weeks) but also have the opportunity to sometimes work a flexible schedule. Our current apartment is very cozy/convenient, but with our additional storage, totals almost $3000/month. Despite the big city rents, the proximity to our work & family is fundamental to our quality of life-meaning we cannot stray far..

These current mortgage rates are putting serious pressure on me to finally get some skin in the game, but I’m paralyzed with the following conundrum:

-do I House Hack a Queens deal with a HUD/203k or Homestyle fixer upper putting 5-10% down

(I’m in no rush to move & can wait for the right deal to make it work)

-or do Buy & Hold/BRRRR somewhere up the river, where I may be able to put 20% down on a multifamily in a sustainable market?

Things to consider:

-NYC appreciation history, forced equity with 203k/Homestyle fix, Replacing my high rent with a mortgage (that tenants help), fixer upper experience with the rehab, proximity to work & family, MIP until refinance, ability to HELOC down the line

vs

-avoiding/limiting exposure to MIP & generating potentially more cash flow, possible need for PM, still paying my rent but maintaining my quality of life, still getting landlord/rehab experience but in a dependable market upstate.

Any and all insight, suggestions, tips, referrals & recommendations would be greatly appreciated!

Whatever happens, it’s happening!

Thanks in advance. I look forward to hearing from, networking with, and maybe even doing business with you! Cheers, CHRISTOPHER

Hello Christopher!

Sounds like there is a personal decision to be made (lifestyle preference) as well as a business decision (where do the #s make most sense).

I always like to look at things with the end in mind - which option makes most sense when taking into account your 20 or 30 year REI goal?

That being said, I think the NYC (including Long Island & Westchester Suburbs) house-hacking route is a great option to entertain. As you've mentioned; low down payment, projected appreciation and ability to significantly lower your current living expenses justify this strategy.

Here are two more reasons why folks use the house-hack strategy when building/growing their NYC portfolio:

- They gain acquisition, project management AND property management experience - all which will help tremendously when its time to scale and grow their portfolio.

-When they move out (to the next house hack OR forever home), the income of their currently occupied unit will oftentimes allow them to cash flow.

Best of luck to you on your journey!

Abel