Would this NYC apartment complex building be a good investment for 9 million?

6 Replies

I am interested in learning how to invest in apartment complexes. Obviously, this price would be out of range for me, but I am considering entering the market looking for the right apartment complex deal. What are the pros and cons? What do you think about buying property's listed on ebay? How do you determine if the investment is worth it? Thanks in advance!



Maybe @Darren Sager  can help evaluate this one. Or other NYC commercial investors.

@Jay Fosters  

While I do not know New York City Real Estate, I highly recommend you introduce your self in "new member introduction". I would state the specific areas that you are looking at investing in and your goals. Alot of people check out the "new member introduction" section and hopefully you can connect better with investors that would be able to steer you in the right direction.

thank you, I will give it a look.

Hi Jay,

What price would be in range for you?? Typical down is 25%. Go above 2 million loan on multifamily and you can start getting away from local banks and land non-recourse loans through other commercial lenders.

If above 4 units but below 2 million in loan balance then pretty much most options will be local banks wanting full unlimited recourse against you and the loan will be  a shorter term of about 5 years with  a 20 to 25 year amort.

The investors I have talked to in the past have said New York is a very tenant friendly state and it takes them months and months or longer to turn over units before the tenant is evicted.

The broker is using 1,272,830 as the number for gross income. Even if accurate the broker is using 897,781 as net income.

So they are saying expenses are only 375,049 a year which is 29%.

No way should you believe those numbers.

50% if no landlord utility and 60% costs ( double what they say ) if landlord pays utility. Another component is are current rents way under market?? If so then tenants likely will not move even if the place gets run down.

The listing says

• Occupancy:    100% OCCUPANCY now.

I can't stand when they do that. 100% now means NOTHING. Show me what it has been average the last 12 to 24 months and how much turnover there has been.

The property was overpriced at the higher price and it's still overpriced now.

Hope it helps.

Without even looking at the numbers, I wouldn't want to own a property in the Bronx unless it was in a really safe area.  See the crime stats below for this property:



I would suggest that if you are serious about this property, get a quote from a competent lender. I had a client once asking me if we could loan money on a Home Depot. I said yes and asked him to send me the offering memorandum. He sent me an office depot which was being offered at a 4.75% cap rate. Now there is a big difference between a Home Depot and an Office Depot and buying at a 4.75% cap doesnt make much sense. I informed him that we could probably go with a 50% LTV loan. He was surprised, but I think he passed on the deal. If you work with a competent lender, they should be able to give you an idea on the deal upfront before you spend too much time on it.


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