All Forum Posts by: Alex Horelick

Hi Musuammath,

House hacking is an excellent strategy in NYC/Westchester and a great way to get started! Many investors scoff at our cash flows up here but the housing market is consistently strong and you can find great quality tenants! I work with many buyers looking to house hack here and I have a house hack in Westchester myself. Let me know if you have any questions!

@Jack Camilliere what areas are you interested in? There is a Yonkers meetup every so often..

Hi Dillon,

It can be tough to find deals here in Westchester but you CAN find diamonds in the rough... even on the MLS!! You have to be persistent and ready to rule out 90%+ of the multifamily deals on the market. Being willing to do a renovation loan will also increase your possibilities dramatically as you will be in on properties that have less interest and competition. My advice would be to take advantage of loan down payment loans as it is an incredible opportunity to leverage your investment purchase with 96.5% bank funds! It will be the best cash-on-cash return you may ever see as an investor! Feel free to reach out if you have questions

@Thomas Hartman - I sent you a private message

Hey @Thomas Hartman,

You can find these types of deals in Westchester and the cashflow numbers will be better than in NYC. I work on a lot of these deals with clients and folks from BiggerPockets looking to house hack. I also live in a house hack myself - couldn't recommend it more! You can do a little better with the school districts than Yonkers, etc. There are good areas here with a bit better schools that also are a quick drive or metro north ride into NYC! If you are willing to do a rehab loan (FHA 203k) then you will expand these options even further!

Hey Thomas,

FHA is a great way to get started as it is easily the most powerful way to leverage your money at 3.5% down - you're essentially taking ownership of an asset using 96.5% other people's (the bank's) money! In Westchester there are areas where multifamily properties cashflow, the school districts are good (better than Yonkers, Mount Vernon, etc) and the housing market is strong and full of good potential tenants - like yourself!

Worst case if you hate it or want to move back to Brooklyn you can move out after living there for a year and rent out the unit you were living in as long as it’s a positive cash flow property. Your tenants will be laying down that big mortgage and generating monthly profit and equity for you.

It's a great way to go and considering you can purchase a $650,000 asset for $22,750 down + closing costs you will be making an excellent cash on cash ROI because of the very low initial cost of entry. If you want to learn more about the area or ask me any questions feel free to reach out!

Hey David,

If you’re interested in house hacking opportunities in Westchester let me know I am happy to help!

@Edly Destine

That is definitely doable in this market. Check your inbox I sent you a DM

@Edly Destine

Yes here in NY the tenant protections are among the strongest around. NY, CT and other states of similar political views are going to be that way. This area does have its advantages though - one of them being that because home prices are so high here you can find very high quality tenants looking to rent! In many areas of NYC/Westchester many city working professionals still can’t afford to buy homes unless they make $200k+ a year! I would suggest staying away from class C and D properties in this area if you are concerned about squatters, non-payment, etc. However In this area a class B tenant may be paying $2000+ a month in rent and have a high-paying job with more steady life circumstances than a class B tenant in most areas. It’s going to come down to risk/reward just like any other investment.. the safer bet neighborhoods, houses and tenants will usually deliver lower cash flow numbers but can provide you with strong, reliable tenants who might take better care of your property and have steadier and more

reliable jobs and life situations. I have clients that are searching for property on either end of this spectrum (lower Westchester vs inner Newburgh) so it comes down to your personal choices, needs, goals and comfort level as an investor.

Hi Edly,

The FHA 3.5% deal for a multi family is one of the most powerful tools to use to start a rental portfolio. To maximize your results in terms of forced appreciation and ROI I would strongly recommend doing a 203k renovation loan in conjunction with it. Also in New York State we have a program called SONYMA which allows you to do a 3% down payment on a multi unit if you are a first time homebuyer. My recommendation for newbies is to do a SONYMA loan, then an FHA a year later so you can have 2 properties in 2 years! I sent you a request reach out if you have any questions