Updated 2 days ago on . Most recent reply
39yrs old Starting with a House Hack...but where? idk
HELP!. I'm looking to move out of NYC into a multi-family(3-4 units) house hack to start my investing journey. Looking for a cashflow play where i can force appreciation with a light to medium reno w/ homestyle or 203k. Good credit(720+) No debt. no spouse. I was advised that the first person I need on my team is a good investor friendly lender. My Lease is up in October, so I have a little time. But I HAVE NO IDEA WHERE TO MOVE TO.... to get off to the most lucrative start. Any suggestions you give will be researched ad nauseum. TY
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#2 Starting Out Contributor
- Realtor
- Hanover Twp, PA
@D.J Burnette, a few thoughts:
1. Whoever advised you that the first thing you need is a good investor friendly lender is completely off base!
You are buying a PRIMARY RESIDENCE in your own personal name. You want a good residential loan like an FHA, VA, or conventional loan.
2. FHA 203k loans are mentioned a lot, but you don't actually see them used very often. Its logistically difficult to get all the scope of work defined so early on with all the quotes needed. You can't do any of the work yourself and you can't hire anyone associated with you like Uncle Vinny the plumber.
So, when you talk to lenders, don't just ask if they offer 203k loans, ask how many they have closed and when the last one they had was. Many offer them but have never closed one or not recently. You want someone who has gone through the process to guide you.
3. The "most lucrative start" is not your biggest concern when starting out. Real estate is a long term, get rich kind of slow play. More like a snowball rolling down hill. It gains size slowly at first but then suddenly it starts growing faster and faster and eventually appears to be an unstoppable force.
4. You want to be in a market you understand! That isn't as easy as it sounds. Laws differ from place to place. Housing stock differs in age, construction, style, etc. What your customers (renters/buyers) want or expect differs. It takes a good amount of effort to really understand a given market.
5. If you plan to self manage, you very well may want to choose a market close enough to where you plan to live long term. Every time you need to handle an issue like an eviction, you don't want to be flying out to Idaho to handle it.
6. If your long term plan is to stay centered on NYC, you could certainly check out my market Wilkes-Barre/Scranton, PA. Only a couple hours away, more fair landlord/tenant laws than NY, and a cash-flowing market that has been attracting investors from your area for some time.