Rental property NYC is it worth it?

[Simon Luo]

Hello! Everyone!

I live in NYC and you can imagine how hard it is to find a house that can be worth the value. I did found a 2 family house and I crunch the numbers; and I actually have about $15 - $20 cash flow a month after the expense. The few issue that concerns me is:

1. Behind the backyard is a cemetery, I’m not really religious. But I’m scared this limits my renter groups!

2. Hard to seller in the future!

3. It will be delivered with tenant that is month to month basis. How should I go about that if I do buy it as my first property investment!

4. It’s been on the market for about 8-9 months and haven’t been sold yet. It does raise a question in my mind.

Any tips or concern or similar experience would be appreciate!

Breakdown:

Rental income:

second floor $1650

first floor $1500

Basement I was planning to live there but it can also be legally rented for about $900-$1000

Asking price: $579,000

Cash needed : $133,700

Gross income: $3150 ( not including the basement)

Operating income: $2835

Operating expense: $741

Net operating: $2094

Loan payment: $2080

Result : $14 cash flow per month

[Remington Lyman]

Originally posted by @Simon Luo:

Hello! Everyone!

I live in NYC and you can imagine how hard it is to find a house that can be worth the value. I did found a 2 family house and I crunch the numbers; and I actually have about $15 - $20 cash flow a month after the expense. The few issue that concerns me is:

1. Behind the backyard is a cemetery, I’m not really religious. But I’m scared this limits my renter groups!

2. Hard to seller in the future!

3. It will be delivered with tenant that is month to month basis. How should I go about that if I do buy it as my first property investment!

4. It’s been on the market for about 8-9 months and haven’t been sold yet. It does raise a question in my mind.

Any tips or concern or similar experience would be appreciate!

Breakdown:

Rental income:

second floor $1650

first floor $1500

Basement I was planning to live there but it can also be legally rented for about $900-$1000

Asking price: $579,000

Cash needed : $133,700

Gross income: $3150 ( not including the basement)

Operating income: $2835

Operating expense: $741

Net operating: $2094

Loan payment: $2080

Result : $14 cash flow per month

 Like @Steven Foster Wilson mentioned OOS investing can give you higher cap rates than investing in your local market. I started investing in Columbus, Ohio in 2017 and have had great success. I have over 20 doors and am looking to add more to my portfolio. 

If you are going to do out-of-state investing you need to develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.