39yrs old Starting with a House Hack...but where? idk
D.J BurnettePro Member
Investor · NYC · Member since 2026 · 3 posts · 2 votes39yrs old Starting with a House Hack...but where? idk
Most Popular Reply
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
3mo@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.
14 Replies
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes3mo
@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.
- Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes2mo
Quote from @Kevin Sobilo:
@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.
I disagree, as long as the contractor is licensed and approved, I've never heard of a lender saying it can't be a relative. I've had a client use the FHA 203(k) loan and her uncle was the contractor on record.
The challenge with 3-4 unit properties and FHA is the self sufficiency test. This is where after you move out, 75% of the rents need to cover the payments, interest, taxes, and insurance. In many cases, that doesn't exist with putting so little down.
I've personally done the 203(k) loan. It's a pain to work with but it is still a great option.
In terms of markets, if you are focusing on cash flow and not appreciation, then you look at lower priced areas like Birmingham, Cleveland, etc. Typically what looks good on paper with cash flow, does come with some risks like higher crime, etc.
I would focus on lifestyle since you will be living there. If you enjoy living there, then similar demographics will too when it comes to future tenants. I would focus on high populated areas with numerous job opportunities. Personally I would stay away from markets where there is a booming apartment construction happening. That means more competition where you will only be able to compete on price.
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes2mo
Quote from @Rick Albert:
Quote from @Kevin Sobilo:
@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.
I disagree, as long as the contractor is licensed and approved, I've never heard of a lender saying it can't be a relative. I've had a client use the FHA 203(k) loan and her uncle was the contractor on record.
The challenge with 3-4 unit properties and FHA is the self sufficiency test. This is where after you move out, 75% of the rents need to cover the payments, interest, taxes, and insurance. In many cases, that doesn't exist with putting so little down.
I've personally done the 203(k) loan. It's a pain to work with but it is still a great option.
In terms of markets, if you are focusing on cash flow and not appreciation, then you look at lower priced areas like Birmingham, Cleveland, etc. Typically what looks good on paper with cash flow, does come with some risks like higher crime, etc.
I would focus on lifestyle since you will be living there. If you enjoy living there, then similar demographics will too when it comes to future tenants. I would focus on high populated areas with numerous job opportunities. Personally I would stay away from markets where there is a booming apartment construction happening. That means more competition where you will only be able to compete on price.
I'm sorry, but you are incorrect. It is very common knowledge that the relative cannot be the contractor. I'm assuming the underwriter simply didn't catch it in your example. Here is an article that discusses it a little, but I'm sure if you take a moment and do a little research you will find that my statement was well founded and common knowledge:
FHA 203(k) Loan Requirements: Renovation Financing Explained
- 3moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @D.J Burnette:
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
Great advice from @Kevin Sobilo
Adding some steps you can take in logical order:
1) Get pre-approved for a mortgage to buy a 2-4 unit, owner-occupied property
2) Since many 2-4 unit properties will NOT have a vacant unit for you to occupy at closing, ask lender to clarify how timeline for your required occupancy. This will impact properties you can offer on.
3) If you want to pursue a FHA 203(k) you will need to cultivate a relationship with a General Contractor as you will need a fast turn around on a rehab estimate to close within 45 days.
4) You'll want to find an real estate agent that understand rentals to assist you in find a property to buy.
5) Available 2-4 unit properties on the market may influence where you move to.
6) Start researching how to be a landlord, so you don't buy a property where you inherit existing tenants, yet have no landlord knowledge!
- In case you buy a property with more than one vacancy, you'll also want to research/learn how to advertise, have an application prospects can fill out, how to screen applicants and what lease you plan to have them sign.
Logical Property Management4.9450 Reviews - Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes3mo
Hey D.J.,
I’m a real estate broker in NYC and Long Island, and I work with a lot of first-time house hackers who are trying to make that exact same jump you’re talking about.
Honestly, you’re on the right track, but the very first step really should be getting clear on your financing with a lender before you get too deep into picking a market. I’ve seen a lot of people in your position spend weeks (sometimes months) looking at areas and properties that don’t actually line up with what they can qualify for, especially when there’s a deadline like your lease ending.
Talking with an investor-friendly lender will help you get a real picture of your budget, what programs you qualify for (FHA, 203k, conventional, etc.), and what your true monthly payment range looks like once you factor in taxes, insurance, and reserves. That alone usually narrows things down a lot more than people expect.
I actually work with a few investor-friendly lenders here in the NYC area and would be happy to connect you with them if that helps.
As for where you should move, I’d really treat that as step two. Once you know your real numbers and buying power, the “right” markets usually become a lot clearer, and you avoid wasting time chasing areas that don’t pencil from the start.
My DMs are open if you want to talk through your situation a bit more or if you want introductions to lenders or even just help narrowing down markets that actually fit your budget.
- Real Estate Agent · Albany, NY · Member since 2017 · 309 posts · 149 votes3mo
I’m a little biased because I’m an agent in Albany, but based on what you’re describing I do think the Capital Region is worth looking into.
It’s still close enough to NYC that you can get back and forth without it being a massive production, but the numbers can make a lot more sense than what you’re probably seeing downstate.
For a first house hack, I’d be looking for a 2–4 unit where the property is livable but has some obvious room to improve. Nothing crazy for a first project, but something where you can clean up a unit, improve rents over time, and give yourself a little more flexibility.
Albany/Troy/Watervliet/Schenectady all have different pockets and different tenant profiles, so I wouldn’t just pick a city blindly. I’d start by figuring out what kind of tenant base you want and how hands-on you’re willing to be.
Also agree with the advice you got about the lender. For a house hack using FHA/203k/HomeStyle, having a lender who actually understands investor-style owner-occupied deals is huge.
Happy to answer questions if you end up looking into this area. I work mostly in small multifamily up here.
- 3moAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
Come to Chicago! 25% of the housing stock is 2-4 units and many are old that need some work!
Brick House CPAs53 Reviews - 3moMark UpdegraffBusiness MemberReal Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 683 votes
Quote from @D.J Burnette:
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
I’d add Western NY / Upstate NY to your research list, especially if you’re leaving NYC and looking for an owner-occupied 3–4 unit with some value-add potential. Rochester is one of the markets I’d study closely under that umbrella.
For your first house hack, I’d focus less on chasing the “hottest” city and more on finding the right mix of entry price, rent demand, renovation scope, financing fit, and long-term exit strategy. Some of the better opportunities are in markets where block-by-block knowledge matters and where older housing stock creates room for forced appreciation.
Your lender advice is solid, especially if you're considering FHA 203k or HomeStyle renovation financing. I'd also make sure your agent understands investor underwriting, not just retail home sales. A 3–4 unit house hack needs someone who can look at rents, deferred maintenance, resale value, tenant profile, financing constraints, and real operating costs.
I’ve been active in the Rochester market as both a broker and investor for nearly two decades, and I sent you a friend request. Happy to chat more if you want to dig into what to research, what to avoid, and how to think through a first house hack from NYC.
- 3moWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
It’s a great question to ask; however, instead of trying to find the perfect city, consider finding one where you will be comfortable living, managing the asset, and implementing your strategy. Areas in cities such as Pennsylvania, Ohio, and upstate New York may present better opportunities for multi-family than NYC does, but the ultimate win will come from purchasing a property that generates good cash flow, has value add, and some margin for error in your first deal.
Good luck!
NETWORTH BUILDERS5236 Reviews - Realtor · Hudson Valley, NY · Member since 2025 · 7 posts · 15 votes3mo
Hello !
I think it's a great idea to house hack to play safe and maximize the situation! While a lender is important, you are definitely on the right track to picking the RIGHT market-- while also meeting your needs since you would be living there.
Just know that a 203k limited--which I'm assuming is the one you're going for-- has a cap of around 75k, so make sure you know your price range. I invested out-of-state last year in Indianapolis (not knowing ANYTHING about the area) so I felt like everything was risky. These forums on BiggerPockets saved my butt for sure and the best advice I can give is to run the numbers. That's basically what I did over and over again with different properties, then called property management companies in the areas to get a more local sense of what the area would feel like. Now I can relax knowing the lease covers the mortgage/turnover rates/renovations!
I am a realtor in the Hudson Valley region (about 1.5-2 hours from the city) and it's a well-worn exit path from NYC for quite some years now. You can lookup Middletown NY (quite a few multi-families, development, decent price range) or Newburgh, NY ( many multi-families, city incentivizing rehab projects)
- Middletown — more affordable, multi-family inventory, decent rents to support cashflow. walkable downtown that's been slowly revitalizing. Many city folks moving out here.
- Newburgh — historic Hudson River city, strong 3-4 unit inventory and renovation tax abatement programs. Varies block by block.
If you are interested in these cities/nearby areas, I would be more than happy to help! Feel free to ask any questions (:Diana
- 3moSam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
Quote from @D.J Burnette:
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
Do research into markets. I would recommend going where there isn't a ton of news about, because everyone else is investing there too. Smaller market if possible as well. NKY is a smaller market but has Cincinnati to rely on, why is why I love it
Sam McCormack Realtor - Investor · NYC · Member since 2026 · 3 posts · 2 votes2mo
Does anyone have a good realtor who can write offers for me in Cleveland and send me comps even at 9-10pm est
- 2moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 904 votes
Quote from @D.J Burnette:
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
You're in a great position with your credit, timeline, and flexibility. I'd also consider looking outside of New York, markets in the Midwest can offer much better cash flow and lower entry prices for a house hack. A lot of out-of-state investors get started there because the numbers simply make more sense. If you decide to explore that route, I'd be happy to point you toward some solid markets and connect you with investor-friendly lenders, contractors, and property managers to help make the transition easier.
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