Contractor · Brooklyn, NY · Member since 2016 · 12 posts · 0 votes
So i was doing some research and i thought about this question for a while. I was looking to buy a home for for myself like every ordinary person would but after reading this forum i thought even if i am a regular
home buyer i can treat it as an investment,
Now property in brooklyn queeens is expensive.
But is cheaper in long island, westchester and surrounding counties(not exactly cheap but compared to square foot in nyc)
Although property is expensive in NYC, taxes are way cheaper compared to all surrounding areas even including counties in nj.
Using staten island as an example
Because in bk or queens you wont get as big of a home for that price.
So if i had a 750k investment i would be paying around 7k a year in taxes and theres a slight chance of appreciation as well over there.
Compared to say in nassau county a 750k home would be about 14-15k tax a year.
What do you veterans think? Is there something im not analyzing into this.
Have you considered looking at the Bronx as well? A lot of investors are moving from the Brooklyn, Manhattan, and Queens markets and moving into the Bronx. The Bronx still has heavy competition, but if you're looking for a multifamily investment where you can live in 1 unit and rent out the others, you can easily find a 3 family at 750k, but possibly a 4.
Real Estate Agent · New York, NY · Member since 2015 · 31 posts · 13 votes
9y
The majority of Staten island has experience fierce competition as well. I went to an open house one day and the agent told me there was 38 groups came by that day. No showings after 3rd day due to flooded with over asking offers. The cap rate has drastically reduced due to the inflated price. I would suggest go explore areas that hasn't been up yet. For example, some of my investor friends already started looking at Newark and Jersey City in NJ.....
Rental Property Investor · Scotch Plains, NJ · Member since 2016 · 38 posts · 11 votes
9y
@AhsanKhan
Hi Ahsan,
I also live in Brooklyn, NY and i see the same picture you are seeing. NYC is just way too hot to find a cash flow positive property. For my 1st investment i bought a condo in NJ about 40 mins drive from Brooklyn. I got a pretty good deal with purchase price of $125,000 and a solid 12% cash on cash return. If you buy 3-4 such properties that income will cover your personal housing expenses and give you more flexibility on where you choose to live. The only thing to consider is multiple closings = more fees. But it might be worth it for a higher return. good luck!
Contractor · Brooklyn, NY · Member since 2016 · 12 posts · 0 votes
9y
Scott McMillan
True definately need to consider it,if i ever plan on getting a corporate job.
Ceasar Rosas
I never really explored the bronx but definately going to give it a look.
Eric Li
Dmitriy Yeshin
Im looking into nj as my first investment since i have a starters budget and nyc is on fire.
So if i find a condo in nj that i want to rent out, to get a loan do i need to do the 20 percent down payment from a bank for a commercial loan since its a property for business.
Second i dont have w-2 tax returns since my business is mostly cash,
Would i have a hard time getting say an 80k loan even if i have a 25% down payment.
Rental Property Investor · Scotch Plains, NJ · Member since 2016 · 38 posts · 11 votes
9y
@ Ahsan Khan
Hi Ahsan, You are probably better off posting this question as a separate thread. I am sure there are a lot more qualified people here on BP that would be able to give you accurate information. As far as my experience, I already held a ''residential'' mortgage under my name so this one had to be an 'investment' loan. I did put 20% down but as far as I know that could be lower if other factors are OK with underwritter (income, credit score etc.) . You will face higher payments though because of Principal Insurance and because investment loans have higher interest than residential. Banks got really tough and want to see a loooot of paperwork before they issue a loan so be prepared before you even apply. Make sure you have your bank statements, tax returns, business income statement all ready to go or your application process will take forever.