Priced Out of Manhattan, Investor Finds Opportunity Three Hours From NYC

Written by:

Rudi Davis

Date:

23 Sep 2025

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Katie Cline, host of hospitality podcast Suite Success, says high urban housing costs are driving a new investment strategy she calls “buying your second home first,” and it’s working better than traditional approaches for many city dwellers.

The Numbers Game

“The median sold price of a home in Manhattan was $1.3 million,” Cline says, describing the market conditions that pushed her to look elsewhere. “At the exact same time, the median sold price in Warren County, which is where we bought our property, was in the three hundreds.”

This dramatic price differential led Cline to question traditional wisdom about homeownership. Instead of stretching to buy in the city, she continued renting while investing in vacation properties – a strategy that quickly proved profitable.

The Tourism Factor

According to Cline, location selection is crucial for this approach. “I really believe in the tourism. I think that’s important for people when they’re thinking about where to invest in short term rentals. Is there built-in tourism, or does your property have to be the draw?”

She highlights several key factors that shape a short-term rental’s success: Established tourist destinations reduce the need for heavy marketing; seasonal travel patterns directly influence revenue potential; strong local amenities support higher nightly rates; and natural attractions create consistent, built-in demand.

From Theory to Success

Cline’s first property validated the concept quickly. “Not only did the house cover its entire costs for the year, but it also profited as well,” she says. This success led to acquiring two more properties, each selected using the same tourism-focused criteria.

The Financial Logic

For urban residents, Cline argues this approach makes particular sense: “If I wanted to buy something comparable to my rental, I would be paying probably two to $4,000 a month more in a monthly mortgage payment, not to mention having to pull together a down payment on a million dollar plus home.”

Cline advises potential investors to prioritize strong tourist markets within driving distance, target locations with proven demand, account for seasonal travel patterns and peak periods, and begin with properties that can reliably cover their costs through rental income.

Looking Forward

While this strategy challenges conventional wisdom, Cline believes it represents a practical solution for many urban residents. “For a lot of us, it might make sense to rent your primary home and buy your second home first,” she says, noting that the approach allows investors to build equity while maintaining lifestyle flexibility.