All Forum Posts by: Halil C.
Halil C. has started 6 posts and replied 22 times.
Post: House Hack in NYC or Florida?
- Investor
- Ft Lauderdale
- Posts 22
- Votes 13
Quote from @Zachary Gilbert:
Do both. I would start in NJ - something on a train line to NYC.
Think of it this way, there are two ways to make money: working in luxury or the cheapest of the cheap.
NJ is a luxury market. It has all the Pharma companies, tons of commuters to NYC and a plethora of schools. There are a lot of higher income jobs and stable economics in NJ. Which means you can charge high rent and get a quality tenant. Also there are a good amount of towns that don’t have rent increase limits.
Once you have the cash, buy in Florida.
Let me know if you want to connect.
Thank you Zach, yes I am thinking about doing both but not sure to go with NJ vs NYC
Post: House Hack in NYC or Florida?
- Investor
- Ft Lauderdale
- Posts 22
- Votes 13
Hi everyone, my first post here.
I currently live in NYC (on a rent, one more year on the contract) and I am planning to get my first property this year. My ultimate goal is to make 5k/month as passive income (from rental properties) to retire early. However, I am going in between two options:
Option 1: Start with a house hack in NYC, live here one more year, and move to Florida to get my other house hack or rental properties.
Option 2: Don't house hack in NYC, move to Florida and house hack there and keep investing in rental properties in FL.
There are ups and downs to both options:
Ups of option 1:
- I can check the properties in person since I already live here in NYC, I know the neighborhoods good enough
- Utilize FHA loan in a high cost market like NYC. If I don't use it in NYC for my first property, I don't think I can afford NYC in the future by using a conventional loan, due to high down payment. So this could be my only chance to get a property in NYC.
Downs of option 1:
- continue to pay high NY income taxes one more year while my job is remote and I could live in a low tax state.
- worried about bad renters so I don't want to lease the other unit in my house hack property to a long term tenant but also STR (Airbnb) may not be an option neither due to NYC restrictions on Airbnb
Ups of option 2:
- Low income tax if I live in FL. Sooner the better for tax purposes, I believe.
- Might be able to get more than one property in FL without waiting 1 year since a) cost of properties are lower in FL b) can check the properties in person if I am already in FL
Downs of option 2:
- I don't know much about neighborhoods in FL (primarily looking at Ft Lauderdale area) so not sure about the actual value
- I currently don't live in Florida so not sure how I can remotely check the property given the distance. I have one more year on my NYC lease so I need to figure out subleasing or breaking the contract etc to move to FL and check the properties in person.
I am sure the list can be much longer but I just highlighted the most important info.
My questions as follows: 1) Any critical info you can think of which I have missed above? In other words, what else would you consider while making a decision between options? 2) Based on the info above as well as your experience, what would you pick?
Appreciate any pointers, suggestions, guidance from the community. Thank you!