Best locations in NY to House Hack.
Hello,
My name is Derek. I am looking into house hacking for my first property, but am have trouble identifying where I want to go. Rochester, Buffalo, and Syracuse are nearby. I live in Ithaca, but want to leave the location. I would prefer to move downstate, but these markets I am seeing have high prices for entry level. I am looking for an area I can generate a decent cash on cash investment without a huge price tag. Does anybody know the best spots to invest in NY? Also, I am a new real estate agent, so I would also like an area that I can generate decent income in that aspect as well.
Thank you
Quote from @Derek Southard:
Hello,
My name is Derek. I am looking into house hacking for my first property, but am have trouble identifying where I want to go. Rochester, Buffalo, and Syracuse are nearby. I live in Ithaca, but want to leave the location. I would prefer to move downstate, but these markets I am seeing have high prices for entry level. I am looking for an area I can generate a decent cash on cash investment without a huge price tag. Does anybody know the best spots to invest in NY? Also, I am a new real estate agent, so I would also like an area that I can generate decent income in that aspect as well.
Thank you
They are all somewhat similar cities. Buffalo is the biggest. If you are going to house hack you need a job or cash. Do you work remotely or are you going to get a job after you pick a city? If you are a new RE agent and you are living off 1099 income with no W-2 income you are going to struggle to get a lender on board.
Lockport NY is outside of Buffalo and has entry level pricing, decent cash on cash returns, and has some quality assets. That may be one place to look.
Quote from @Matthew Irish-Jones:
Quote from @Derek Southard:
Hello,
My name is Derek. I am looking into house hacking for my first property, but am have trouble identifying where I want to go. Rochester, Buffalo, and Syracuse are nearby. I live in Ithaca, but want to leave the location. I would prefer to move downstate, but these markets I am seeing have high prices for entry level. I am looking for an area I can generate a decent cash on cash investment without a huge price tag. Does anybody know the best spots to invest in NY? Also, I am a new real estate agent, so I would also like an area that I can generate decent income in that aspect as well.
Thank you
They are all somewhat similar cities. Buffalo is the biggest. If you are going to house hack you need a job or cash. Do you work remotely or are you going to get a job after you pick a city? If you are a new RE agent and you are living off 1099 income with no W-2 income you are going to struggle to get a lender on board.
Lockport NY is outside of Buffalo and has entry level pricing, decent cash on cash returns, and has some quality assets. That may be one place to look.
Thanks so much for your input! To give more info, I am working 2 jobs other than real estate right now, and saving towards investments. I want to use an fha for the first for low money down. Therefore, I can pick up something else rather quickly. I have been considering buffalo as well. I am willing to work a dead end there until I can get myself running. What are some neighbors that you would recommend? Also Lockport vs buffalo?
@Derek Southard west side is a good up and coming market. I also like parts of South Buffalo for a new investor working with an FHA loan.
- Real Estate Agent
- Syracuse Binghamton and Ithaca, NY
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Quote from @Derek Southard:
Hello,
My name is Derek. I am looking into house hacking for my first property, but am have trouble identifying where I want to go. Rochester, Buffalo, and Syracuse are nearby. I live in Ithaca, but want to leave the location. I would prefer to move downstate, but these markets I am seeing have high prices for entry level. I am looking for an area I can generate a decent cash on cash investment without a huge price tag. Does anybody know the best spots to invest in NY? Also, I am a new real estate agent, so I would also like an area that I can generate decent income in that aspect as well.
Thank you
I’m in Ithaca too, and I flip here. The prices are outrageous. If you want to be closer to downstate, have you considered Binghamton? The University is growing by leaps and bounds, and housing prices have remained pretty low, compared to up here! Are you thinking an owner-occupied multifamily?
Have you checked out the Hudson valley? Great little niche area. Kingston is up and coming with a lot of millennials moving to that side of town. Might be worth checking out. Also, nearby trains will take you into the city.
Quote from @Caroline Moore:
Have you checked out the Hudson valley? Great little niche area. Kingston is up and coming with a lot of millennials moving to that side of town. Might be worth checking out. Also, nearby trains will take you into the city.
Caroline is completely right! The mass exodus from the city during covid pushed everyone upstate, but a majority of people stayed along the Hudson River. Kingston, Newburgh, Poughkeepsie, etc are all flooded with new people - most of which who rent! There is also a great market for summer and winter rentals in the Hudson Valley as well... people come to see the "country" as if Orange County isn't one of the highest populated counties in NY!
There are no bad areas to house hack... that's what's great about house hacking. It never doesn't make sense.
- Real Estate Agent
- Syracuse Binghamton and Ithaca, NY
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Quote from @Jake Handler:
There are no bad areas to house hack... that's what's great about house hacking. It never doesn't make sense.
This is a great point. A large part of the value comes from the fact that (ideally) it eliminates housing cost for you, and remains a leverage-able asset after you're done living there. If it's a place you can improve a bit in an area you like, it's probably a good house hack.
@Jake Handler you ever been to Niagara Falls LOL?
Florida
Oh you said NY lol
I invest full time in the Rochester/Monroe County markets --feel free to reach out with any specific questions
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Developer
- Suplex Properties, LLC
It totally depends on your budget. You can make great returns on a house hack, maybe even pairing your residence with a cool STR if you find a single family with accessory in the Catskills or Hudson Valley. Or go straight up LTR and keep it simple. You want cheap? Oneonta. Want stuff to do? Albany/Troy? Best bang for your buck? Mid Hudson if you can find a deal, but don't expect to cash flow while residing in one side at these interest rates. You can probably live rent free and build equity though.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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- Austin, TX
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Go where it works, most markets don't allow for house hacking (breaking even on your mortgage with other rents).
Quote from @Matthew Irish-Jones:Niagara falls NY side is so rundown. It is sad, because the falls are so amazing. I was thinking a great return for STR, but so risky with the old homes, and the depression on the area.
@Jake Handler you ever been to Niagara Falls LOL?
Hey @Derek Southard 👋🏼
I know nothing about NY but I have helped investors from Brooklyn invest in Chicago & Northwest Indiana where prices are considerably cheaper on the $200-250k range. Just saying! 🤷🏽♀️
@Derek Southard
Not sure your situation and if you want to deal with it but you could potentially benefit off of some of the SUNY schools to get tenants in a house hack scenario. Or SU but prices might be high to get into something that works there.
I’m currently looking in upstate as well for multi and it’s very unappealing and a very tenant friendly state. Best of luck!
Hi Derek!
I would recommend Binghamton! I also am a licensed Realtor who did house hacking! I started with a Duplex using a 3% down, no closing costs deal. I then bought a second property using an FHA loan to get a triplex while keeping my first duplex! Our house prices are at a lower point than that of many other areas. You can get a duplex in relatively good condition around $100,000-$120,000.
