House Hacking in NYC

House Hacking
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House Hacking in NYC

Demiss Shippley
Member since 2022 · 1 post · 1 vote

Hey everyone, I live in Brooklyn, NY and I am looking to house hack. I was wondering if anyone can give me some information/guidance if getting into house hack in NYC (expensive market) is doable or what kind of asset class is better for this area. I was also looking into condos since prices are lower but wont be able to house hack. Thank you in advance 

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Abel CurielBusiness Member
Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
2y
Quote from @Demiss Shippley:

Hey everyone, I live in Brooklyn, NY and I am looking to house hack. I was wondering if anyone can give me some information/guidance if getting into house hack in NYC (expensive market) is doable or what kind of asset class is better for this area. I was also looking into condos since prices are lower but wont be able to house hack. Thank you in advance 

 Hello Demiss,

I agree with @Benjamin Sulka's points here. 

What you want to focus on here is something that could match or lower your current living expenses. Whether or not you'll be able to lower your current living expenses by househacking will depend on:
- the type of property
- property taxes - which are relatively low in BK compared to other counties
- down payment
- projected income

That said, househacking in NYC is totally doable and most first-time househackers find success in located small multifamily properties (2-4 units) preferably with some sort of additional income potential (i.e. ADU, parking, storage, laundry). Alternatives to NYC househacking include searching in the surrounding suburbs - Long Island and Westchester County.

All the best to you on your journey!

Abel

REbuild Team - eXp Realty5234 Reviews
WebsiteView Page
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  • Benjamin Sulka
    Cleveland, OH · Member since 2022 · 826 posts · 578 votes
    2y

    Demiss, 

    I'm not from your area so I can't offer any precise insight there but I do have a few pieces of advice that I've learned on the house hacking forums. 

    1. Your property will not cash flow. If you try to find a deal that cash flows while you're living in one of the rentable units, you'll likely never find a property. The goal is to reduce living expenses while paying down some of your mortgage liability and learning how to be a landlord. 

    2. Network, network, network and tell people in your personal network what you're looking to do. You never know who might know somebody who is looking to sell a property. Also, attend local real estate meetups in your area and talk to local investors doing deals in that market. 

    3. Time in the market is better than timing the market. 

    Hope someone can give you a more granular response regarding Brooklyn, NY in particular. 

    Happy House Hacking! 

    1Reply
  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    2y
    Quote from @Demiss Shippley:

    Hey everyone, I live in Brooklyn, NY and I am looking to house hack. I was wondering if anyone can give me some information/guidance if getting into house hack in NYC (expensive market) is doable or what kind of asset class is better for this area. I was also looking into condos since prices are lower but wont be able to house hack. Thank you in advance 

     Hello Demiss,

    I agree with @Benjamin Sulka's points here. 

    What you want to focus on here is something that could match or lower your current living expenses. Whether or not you'll be able to lower your current living expenses by househacking will depend on:
    - the type of property
    - property taxes - which are relatively low in BK compared to other counties
    - down payment
    - projected income

    That said, househacking in NYC is totally doable and most first-time househackers find success in located small multifamily properties (2-4 units) preferably with some sort of additional income potential (i.e. ADU, parking, storage, laundry). Alternatives to NYC househacking include searching in the surrounding suburbs - Long Island and Westchester County.

    All the best to you on your journey!

    Abel

    REbuild Team - eXp Realty5234 Reviews
    WebsiteView Page
    3Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    2y

    My opinion for those that live in a high cost of living market is to continue living / renting in that market and invest in a different market that is affordable and provides both cash-flow and appreciation potential.

    The reason to stay in the HCOL market is because you will be paid(hopefully) a nice large salary.
    You can take this salary to then 'easily' invest in other markets.

    NYC is tenant friendly which can be a con for investors.
    Furthermore, NYC has appreciated historically. However, that was because the jobs were here.
    However, with the push of jobs to other states, may make appreciation less likely.

    Best of luck in whatever you decide.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
    View Page
    2Reply
  • Joe Jor
    Westchester, NY · Member since 2018 · 115 posts · 52 votes
    2y

    Conceptually think of house hacking in the NYC metro as a reduction in rent.

    It all boils down to the numbers, but if the direct property costs (mortgage + insurance + tax + capex/repairs + vacancy) - the income (rental income) is less than your rent, you are effectively saving yourself money, aka "rent saving"

    I did this in 2014 in Westchester county (different location, different time, different market), but effectively cut my rent in half.

    Regarding Basit's suggestion, I would follow this ONLY if your cashflow from the other market is greater than the "rent saving" in NYC on a per dollar invested basis.

    Joe

    1Reply
  • Ursula Lovings
    Member since 2023 · 11 posts · 13 votes
    2y

    Hi Demiss

    I'm in Brooklyn as well and I'm currently considering house hacking.  I don't have any advice, but let me know if you want to connect and talk Bk real estate possibilities.

    2Reply
  • Donnie Santana
    Member since 2024 · 6 posts · 1 vote
    2y

    Hi, Im interested in partner up with people they want to reach out. Make meet for coffe or something

    1Reply
  • Anthony Swain
    Real Estate Agent · Charlotte, NC · Member since 2021 · 147 posts · 150 votes
    2y

    @Demiss Shippley

    House hacking in expensive markets is doable, but you may need to be more flexible or more creative.

    I agree with @Benjamin Sulka, likely in this environment plus being in a high COL, you'll likely not be able to cashflow unless you have a SFH with many rooms that you rent out individually. I am not sure of the laws for NYC, but that may not even be a legal option depending on their restrictions.

    As Ben mentioned, if you can reduce your living expenses while paying down mortgage and getting appreciation, then you are probably greatly impacting your net-worth.  

    My best advice is to keep analyzing properties and different scenarios to gauge what might be the best strategy. Once you have your ideal strategy in mind, then you can really focus your efforts there. Connect with other real estate professionals in the area, because they can be HUGE resources on your journey. GREAT agents, lenders, contractors, wholesalers, etc. are worth their weight in gold. Fortunately, you are in the right place to connect with some investor friendly RE pros!

    Keep at it Demiss! We are here to help. Feel free to reach out.

    -Ant

    1Reply
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