All Forum Posts by: Marvell Martin

Hi @Marvell Martin house hacking is great way to go, under $100K down payment tends to be fairly easy. I have clients buying $million MFR for under $100k down payment. I would recommend New Jersey. Very close access to NYC and extremely favorable owner occupied rental laws. My wife and I have been house hacking for over a decade and have yet to miss a single payment of rent across our properties, NJ gets a bad rep as being not landlord friendly but believe it or not it is a town by town thing. Knowing the right towns, with more favorable laws allows for huge rent increases and very desirable tenants with very little government intervention. House Hacking NJ got us to Fi in about 5 years, best part is if you are open minded to different strategies, ones that are very easy for house hackers to implement, finding deals that hit the 1% Rules and higher are possible even in todays market. I have multiple clients that hit over 1% this past year.

@Marvell Martin have you been pre-approved by a lender yet?

If you are self-employed, this may be a challenge.

Welcome to the BP forum, @Marvell Martin!

Its good to know that you have the flexibility to move elsewhere. NY is definitely expensive. We are also based in Queens (Astoria), and in this area, the average sale price for 2-4 unit properties is nearly $400K more than the rest of Queens.

If you did decide to target the local market, I would aim for properties at or below $1,200,000 which is the median pricepoint for Queens and Brooklyn. 

The best opportunities for cash flow, lowering your current living expenses, AND staying below the median/average price points will be in the Bronx and Westchester. There are options in BK, Queens, and Long Island, but fewer options are available compared to BX and Westchester. If you're looking to lower living expenses, try to prioritize properties with ADUs or other potential income sources.

Whether or not you decide to focus on NY vs. OOS will depend on your short- and long-term goals. You will find more positive monthly cashflow properties in other states (or Upstate NY), BUT the annual appreciation here in NY is much stronger.

Landlording in NY is not for the faint of heart. Evictions here can take longer than in neighboring states (i.e. NJ and CT). 
That said, successful NY landlords usually do the following:
- Implement a process for pre-screening and thorough screening of tenants
- Use tenant applications and collect as much vital information as possible i.e. credit reports, past landlord references, professional/personal references, financial documents, etc.
- Set expectations and share unit rules prior to the application process to weed out disinterested tenants
- Deliver notices (notice to comply, late payment, 30-90 day notices, etc.) expeditiously. In other words: Don't give anyone time to give you a sob story, instead, get your attorney or property management company involved in delivering notices immediately.

All the best!

Abel

Hey @Marvell Martin ,

You're thinking along the right lines by house hacking a duplex or triplex! Given your goals of minimizing living expenses and setting yourself up for future investments, here are a few things that I'd consider:

NYC vs. Out of State

• NYC Challenges: High property prices, strict landlord-tenant laws, and heavier taxes. While appreciation is strong in some areas, cash flow is typically lower compared to other markets.
• Out-of-State Benefits: You can find better cash-flowing properties with lower entry costs. Cities in the Midwest and Southeast (like Indianapolis, Cleveland, or parts of Florida) offer lower purchase prices, better rent-to-price ratios, and more landlord-friendly laws.

House Hack in NYC?

If you stay in Queens or look at the Bronx, you might find a duplex/triplex, the key question is whether your rental income offsets enough of your expenses to meet your $1,475 target or not.

Out-of-State Options

You mentioned no location constraints—this opens up many landlord-friendly markets with properties in the $250K-$400K range where a 3.5%-5% down payment keeps you at a low entry cost. These markets also allow you to repeat the strategy more affordably and frequently.

Being a Landlord in NY

On the other hand, NYC has some of the most tenant-friendly laws in the country, making evictions and rent increases harder. If reducing your out-of-pocket cost is your top priority, it may not be the best choice for your first investment.

Final Thoughts

If appreciation is a priority, NYC has historically been strong, but it's not as easy to cash flow. If you want a better balance of cash flow and appreciation, consider landlord-friendly markets out of state. House hacking is a great strategy—just make sure you run the numbers carefully to hit your goals.

Would you be open to looking at specific markets that fit your criteria? I'd love to connect. I'm always happy to help! Feel free to reach out at any time.

Jack