Is investing in NYC a bad idea

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Is investing in NYC a bad idea

Jessenia Hartage
Member since 2024 · 18 posts · 14 votes

Am totally new to investing, but every training session i read or listen to, says to start in your back yard.  Am in queens, NY is not landlord friendly.  Since this is new to me should I still consider NY like bklyn and queens or should I just stay away?  If yes to invest in NY, what would be the recommendation criteria that I can implement to protect me to some degree.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
2y

The areas of the country that are the most anti-landlord are also where you make the most money, because they have the highest demand. NYC, Boston, DC, LA, San Fran, Seattle. It takes just owning a few properties in these areas to turn you into a multimillionaire in a pretty quick time. 

Some strategies to consider implementing;

1) Buy B class properties and higher

2) Don't be afraid of vacancy

3) Know the laws like the back of your hand

4) Hire good property management 

5) Treat your tenants well

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Jessenia Hartage

    for sure you should house hack there if you can.

    investing there is more complicated since prices are high.  can't answer that one for you.  

    0Reply
  • Bernard Joseph S.
    Investor · NJ · Member since 2022 · 155 posts · 224 votes
    2y
    Quote from @Jessenia Hartage:

    Am totally new to investing, but every training session i read or listen to, says to start in your back yard.  Am in queens, NY is not landlord friendly.  Since this is new to me should I still consider NY like bklyn and queens or should I just stay away?  If yes to invest in NY, what would be the recommendation criteria that I can implement to protect me to some degree.

    "Start in your backyard" is a common theme but doesn't work in every location. NYC is notoriously tenant friendly, and I would not recommend for a new investor. We had a property in Brooklyn for many years and it became a headache. The best decision we ever made was to sell and 1031 into several properties in Florida. Landlord friendly, legislatively friendly and where the U Hauls are going, not leaving like NYC. But you don't have to follow my lead, there are many states to look into that fit the bill. With proper property management, it's not an issue being out of state.

    You can work with a turnkey company or directly with builders that offer the same services for your first property. We did that to streamline the process and gain experience. If you have questions, you can contact me directly. 

    For us, once we invested out of NY we never looked back.

    2Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    @Nader Shariff is in NYC and his family has been investing in the city there for years, but I know he invests primarily out of state.

    I'm sure he'd have some great insights. 

    0Reply
  • Nader Shariff
    Detroit, MI · Member since 2020 · 150 posts · 68 votes
    2y
    Quote from @Travis Biziorek:

    @Nader Shariff is in NYC and his family has been investing in the city there for years, but I know he invests primarily out of state.

    I'm sure he'd have some great insights. 

     Thanks Travis. @Jessenia Hartage, happy to chat anytime. 

    0Reply
  • Jessenia Hartage
    OP
    Member since 2024 · 18 posts · 14 votes
    2y
    Quote from @Nicholas L.:

    @Jessenia Hartage

    for sure you should house hack there if you can.

    investing there is more complicated since prices are high.  can't answer that one for you.  


     I owned a home in queens, so house hacking is not an option for me.  It would have been a great idea before i purchased my house.  lol!

    0Reply
  • Jessenia Hartage
    OP
    Member since 2024 · 18 posts · 14 votes
    2y
    Quote from @Bernard Joseph S.:
    Quote from @Jessenia Hartage:

    Am totally new to investing, but every training session i read or listen to, says to start in your back yard.  Am in queens, NY is not landlord friendly.  Since this is new to me should I still consider NY like bklyn and queens or should I just stay away?  If yes to invest in NY, what would be the recommendation criteria that I can implement to protect me to some degree.

    "Start in your backyard" is a common theme but doesn't work in every location. NYC is notoriously tenant friendly, and I would not recommend for a new investor. We had a property in Brooklyn for many years and it became a headache. The best decision we ever made was to sell and 1031 into several properties in Florida. Landlord friendly, legislatively friendly and where the U Hauls are going, not leaving like NYC. But you don't have to follow my lead, there are many states to look into that fit the bill. With proper property management, it's not an issue being out of state.

    You can work with a turnkey company or directly with builders that offer the same services for your first property. We did that to streamline the process and gain experience. If you have questions, you can contact me directly. 

    For us, once we invested out of NY we never looked back.


     Thanks for sharing.  For my first deal, I guess am just afraid to invest outside my area.

    1Reply
  • Jessenia Hartage
    OP
    Member since 2024 · 18 posts · 14 votes
    2y
    Quote from @Travis Biziorek:

    @Nader Shariff is in NYC and his family has been investing in the city there for years, but I know he invests primarily out of state.

    I'm sure he'd have some great insights. 


     Thanks, I will reach out

    0Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2y

    I was born and raised in Queens and I would not recommend owning a home in NY. We are currently going through 2 eviction in NY, one in Queens and one in Upstate NY. Queens is at 8 months and upstate is 1 year. Neither has paid any rent during this time frame and the owner has had to paid all expenses. 

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2y

    @Jessenia Hartage Detroit's a great market as US Census Bureau finally recognized that the city is growing!

    Nader & Travis will tell you the same thing as they're partners here in Detroit.

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    2Reply
  • Jessenia Hartage
    OP
    Member since 2024 · 18 posts · 14 votes
    2y
    Quote from @Adam Bartomeo:

    I was born and raised in Queens and I would not recommend owning a home in NY. We are currently going through 2 eviction in NY, one in Queens and one in Upstate NY. Queens is at 8 months and upstate is 1 year. Neither has paid any rent during this time frame and the owner has had to paid all expenses.

    I do understand this can happen anywhere, but having the law work against you does not help.  Yes, I dont want to deal with that, 8 and 1 year of non payment is crazy.  Sorry that you are having to deal with this.  Tenant not paying is thief in my book any day.  Thank you.

    1Reply
  • Jessenia Hartage
    OP
    Member since 2024 · 18 posts · 14 votes
    2y
    Quote from @Drew Sygit:

    @Jessenia Hartage Detroit's a great market as US Census Bureau finally recognized that the city is growing!

    Nader & Travis will tell you the same thing as they're partners here in Detroit.

    Thanks for the recommendation.
    0Reply
  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    I know many investors from NY who are choosing to invest in the Midwest because of the low barrier to entry and yearly cash returns making more sense in these lower priced markets. Ohio markets show up 3 times in Zillow’s 2024 hottest markets, with Columbus and Cincinnati taking the top 2 and 3 spots. I moved from Florida to start investing in Columbus because of the same reason.

    https://www.zillow.com/learn/hottest-housing-markets-2024/

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  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    2y
    Quote from @Jessenia Hartage:

    Am totally new to investing, but every training session i read or listen to, says to start in your back yard.  Am in queens, NY is not landlord friendly.  Since this is new to me should I still consider NY like bklyn and queens or should I just stay away?  If yes to invest in NY, what would be the recommendation criteria that I can implement to protect me to some degree.


     Househacking, yes. But I personally wouldn't any other way

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  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    2y

    Hi Jessenia,

    The risk of investing out of state is real especially if you are investing far away. There is a lot of value in being able to invest in your backyard - the ability to check on the property any time, saving costs for not hiring property managers and knowing the area better. On the flip side, you have to be cautious of the fact that NY is tenant friendly. Either way you have to take a risk, so it sounds like it's a matter of preference. Another factor is appreciation. I'm not familiar with Brooklyn or Queens - is the benefit of appreciation worth the risk?

    310-848-9776
    0Reply
  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    2y
    Quote from @Jessenia Hartage:

    Am totally new to investing, but every training session i read or listen to, says to start in your back yard.  Am in queens, NY is not landlord friendly.  Since this is new to me should I still consider NY like bklyn and queens or should I just stay away?  If yes to invest in NY, what would be the recommendation criteria that I can implement to protect me to some degree.


     If you're looking to invest locally, I'd recommend focusing on the South and Southeast sections of Queens i.e. Jamaica, Ozone Park, St. Albans, Woodhaven, Rosedale, Laurelton, Richmond Hill. 

    In these areas, you'll find a better price-to-rent ration than you'd find in higher-priced Queens neighborhoods i.e. LIC, Astoria, Jackson Heights, Woodside, Middle Village, etc.

    All the best to you on your search!

    Abel

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    0Reply
  • Nader Shariff
    Detroit, MI · Member since 2020 · 150 posts · 68 votes
    2y
    Quote from @Adam Bartomeo:

    I was born and raised in Queens and I would not recommend owning a home in NY. We are currently going through 2 eviction in NY, one in Queens and one in Upstate NY. Queens is at 8 months and upstate is 1 year. Neither has paid any rent during this time frame and the owner has had to paid all expenses. 

    Our longest took over a year in the boroughs. Was a nightmare 

    0Reply
  • Nader Shariff
    Detroit, MI · Member since 2020 · 150 posts · 68 votes
    2y
    Quote from @Drew Sygit:

    @Jessenia Hartage Detroit's a great market as US Census Bureau finally recognized that the city is growing!

    Nader & Travis will tell you the same thing as they're partners here in Detroit.

    Agreed
    0Reply
  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    The best way to protect yourself investing in NYC is to buy higher quality assets and require exceptional credit credentials from your applicants to obtain approval to rent. Minimum credit score 720. Unfortunately you cannot check New York eviction records and they are the best predictor of future problems. Are you ready to upgrade your primary and turn your current home into a rental?

    If you're looking for cheap stuff with high cashflow you need not travel further than the areas around Camden, NJ, Newark, NJ etc. Bridgeport and Hartford CT are also worth looking into. 

    1Reply
  • Jessenia Hartage
    OP
    Member since 2024 · 18 posts · 14 votes
    2y

    Thanks Abel, Thats actually the area that I live in.  Since you are a queens agent, honestly speaking what challenges are you finding investors facing when renting their property in those area and what system can they put in place to reduce those challenges?

    1Reply
  • Jessenia Hartage
    OP
    Member since 2024 · 18 posts · 14 votes
    2y
    Quote from @Nader Shariff:
    Quote from @Adam Bartomeo:

    I was born and raised in Queens and I would not recommend owning a home in NY. We are currently going through 2 eviction in NY, one in Queens and one in Upstate NY. Queens is at 8 months and upstate is 1 year. Neither has paid any rent during this time frame and the owner has had to paid all expenses. 

    Our longest took over a year in the boroughs. Was a nightmare 


     Do you still invest in New York or you now invest else where

    0Reply
  • Jessenia Hartage
    OP
    Member since 2024 · 18 posts · 14 votes
    2y
    Quote from @Melanie P.:

    The best way to protect yourself investing in NYC is to buy higher quality assets and require exceptional credit credentials from your applicants to obtain approval to rent. Minimum credit score 720. Unfortunately you cannot check New York eviction records and they are the best predictor of future problems. Are you ready to upgrade your primary and turn your current home into a rental?

    If you're looking for cheap stuff with high cashflow you need not travel further than the areas around Camden, NJ, Newark, NJ etc. Bridgeport and Hartford CT are also worth looking into. 


     I was actually considering NJ and CT as an alternative to NY.  So thank you for that, I might just focus there instead.  Thanks,

    1Reply
  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    @Nader Shariff If you divide your total appreciation from the time you bought the property to the time you sold it how much money did you make in appreciation during the year you weren't receiving rent?

    1Reply
  • Alexander Szikla
    Real Estate Agent · New York City · Member since 2020 · 819 posts · 641 votes
    2y

    New York City is an excellent market to invest in - but you need to manage your risks accordingly and have a long-term focus. 

    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    2y
    Quote from @Adam Bartomeo:

    I was born and raised in Queens and I would not recommend owning a home in NY. We are currently going through 2 eviction in NY, one in Queens and one in Upstate NY. Queens is at 8 months and upstate is 1 year. Neither has paid any rent during this time frame and the owner has had to paid all expenses. 


     Seem you may need to hire a property manager in New York. Lol.  If you need an attorney rec., let me know.

    As for the OP's question, I wouldn't recommend purchasing in NYC unless you can purchase the property for cash.  Evictions outside of NYC take about six weeks.  Evictions in NYC can take up to a year.  Legal fees in NYC can be as high as 3k-4k.  Outside of NYC, 1k-2k; depending on location. Upstate NY, around 800.00-1k.  Evictions in Rockland, Westchester, Long Island, etc. closer to 2k.

    1Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    2y
    Quote from @Alexander Szikla:

    New York City is an excellent market to invest in - but you need to manage your risks accordingly and have a long-term focus. 


     NYC is not for the faint of heart or the new investor. It is for professional investors who have years under their belts and can weather the storm from the political or legal climate. NYC is as bad, if not worse than DC, Washington State, or California. All crap shoots in terms of landlord abuse.

    0Reply
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