House Hacking In New York City?

Question

Hi everyone,

My name is Josh and I am currently a college senior that just received a job offer in New York City. I would like to house hack a property in the city or perhaps just outside the city instead of paying thousands of dollars paying rent with nothing to show for at the end of the year.

That being said, is house hacking possible in New York City, and if so, do you have any advice on how to go about the process? Thank you for any reply.

Best,

Josh

Damon Bodine · Answer

hey @Joshua Morency. its doable but you may not be able to 100% zero out your monthly expenses.

I think the other made some good points here. If its at all helpful for you I host NYC house hacking happy hour every month on zoom. You're always welcomed to join.

Account Closed · Answer

Hi Josh! House Hacking is difficult but possible in NYC. However, since the prices of real estate are extremely high, I would try to look just outside the city. One possible way is to qualify for a loan, get a house with multiple bedrooms, and rent it out to multiple people. That way, you could break even, or perhaps generate cash flow. However, you should always do some market research, talk to an attorney, and be knowledgeable about the law in NYC. This is because the laws in New York are very pro-tenant, so if not cautious, an investment can go downhill. Eviction is very difficult to achieve.

When investing in New York, be strict and strategic about your approach. Having bad tenants is not something you would like to have, thus make sure the tenant has sufficient income, credit, and who they are. You can also rent to college students.

What you can also do is attend local or long-distance meetings and meet with people who are landlords in NYC. You can interact with them and learn more abu

That said, indeed it is difficult to house hack and scale up in NYC. If you share a house with multiple roommates, you could significantly reduce cash flow.

Good luck on your real estate journey, and keep us updated!

Alexander Szikla · Answer

Hey Josh - FHA is the way to go in NYC. Especially if you can find a four unit with a basement you can live in. This would be ideal in terms of cash flow (after a few years) and equity appreciation since you'd be achieving tremendous returns on limited equity in the form of appreciation, principal paydown and tax benefits aside from only cash flow.

Andrew Berardi · Answer

Hey Josh,

Any luck house-hacking in NYC?

I'm looking into buying a multifamily and doing the same thing.

Andrew Jennings Freerks · Answer

@Joshua Morency I started out by househacking a 3 bedroom rental allowing me to basically live rent free for a few years while I saved up enough money to buy a condo.  Just make sure you try to househack in a desirable area where people will pay a high amount per bedroom.  Brooklyn, Manhattan and Western Queens are good areas for this and townhouses/ small landlords will probably give you the most opportunity.  After a few years you can springboard into a small multi-family or multi-room condo/ coop.

Spenser McCoy · Answer

Hello @Joshua Morency - did you manage to find a place that worked for you? I am in a similar position and would like to learn how to get started. Do you have any advice or have you had any success?

Thanks!

-SM

Peter Mastrorocco · Answer

Interested to hear if anyone has had any luck?

House Hacking In New York City?

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