House Hacking in NYC while working in Investment Banking

I am 28 years old and currently a senior associate at a BB IB working 60-65 hours a week on average. With this work from home situation and our current return plans (anticipate to be able to come to the office whenever but not required, ideally going to go Mon - Wed), I was thinking about investing in property in Brooklyn. I have seen cases of people generating cashflow on 3/4 unit multifamily properties and was wondering if anyone has done it while also working as many hours as most of the people on this forum do. Just want to see if it is feasible/good idea or does being a landlord detract from career progression.

Any and all thoughts welcome.

Comments (19)

 
Funniest
Feb 24, 2021 - 2:59am

Not sure if a senior associate will have time to evict a literal washed up delinquent Jamaican reggae band member for not paying rent in a Brooklyn apartment which has been trashed and now reeks of weed and piss and cats and people staying there illegally.. definitely not based on a true story from a family friend 

Choose your tenants wisely, literally just buy and hold Bitcoin for a better return

 

 
Mar 4, 2021 - 7:58pm

Could get a property manager for this very reason to deal with it, but goodbye to your NOI margins.

Quant (ˈkwänt) n: An expert, someone who knows more and more about less and less until they know everything about nothing.

 
Most Helpful
Feb 24, 2021 - 10:29am

Tough thing to pull off in NYC.

When a boiler breaks at 3pm on a Thursday, are you prepared to field 3 or 4 calls from angry tenants in the middle of your workday?  Will you have the flexibility to spend time getting folks to come out and fix that leak?  "Being a landlord" shouldn't impact your career at all, but doing all the things you need to do to keep a NYC property up to code and functioning smoothly is a full time job - which is why tens of thousands of people in NYC have entire careers dedicated to it.  And if you want to pay someone else to do it for you, you can wave goodbye to most of your cash flow.

 
Feb 25, 2021 - 9:29am

HIV Neutral

I don't see this as being a huge deterrent

In what sense?  If you mean you have the work flexibility and reasonable hours to deal with it, great.  If you think these are ancillary issues, I would suggest staying out of the owner/operator real estate space.

 
Feb 24, 2021 - 12:20pm

It's cashflow for sure but don't be under the illusion you aren't working for it. I've heard some absolutely horrendous stories about tenants and having to deal with just all the random shit that can come up when renting out a house/apartment. I'd shoot for something more passive especially if you're working in IB where you already have a boiler breaking once a week. The only way to do it imo is to own enough properties to have them managed by a rental management company but idk how much a cut they take and if it's even worth it after that.

To live is to suffer, to survive is to find some meaning in the suffering.

 
Feb 25, 2021 - 3:48am

I think as an associate in banking you're in a rough spot - you really don't have enough time to do rental management yourself but probably don't have enough capital to buy enough property where hiring a rental management company would make sense. So because the property management company would eat signfiicantly into your return, I say pick out some different assets that will generate cash flow, don't do real estate yet.

If you have a friend/brother/cousin/uncle who has free time and is cut out for property management, see if you can get them to do it for a fair price. I've seen this before - one guy is a rainmaker and buys property, his uncle has been less successful but is the perfect guy to manage property and earn additional income. Win-win scenario if you can keep it in the family imo. 

 
Mar 4, 2021 - 8:01pm

This is definitely the way to go and tbh probably how a lot of family real estate firms start.

Quant (ˈkwänt) n: An expert, someone who knows more and more about less and less until they know everything about nothing.

 
Mar 4, 2021 - 8:00pm

Goya Beans

managed by a rental management company but idk how much a cut they take

where I live it's around 10% of gross rent, but probably could work out a better deal with you had multiple units, but that's a mo' money, mo' problems kind of thing

Quant (ˈkwänt) n: An expert, someone who knows more and more about less and less until they know everything about nothing.

 
  • Associate 1 in IB - DCM
Feb 25, 2021 - 10:02am

You could look into a website called Roofstock, which allows you to invest in real estate across the country if you want exposure to real estate.

 
Mar 4, 2021 - 8:05pm

Quant (ˈkwänt) n: An expert, someone who knows more and more about less and less until they know everything about nothing.

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