Investor · Maspeth, NY · Member since 2015 · 8 posts · 1 vote
I have been reading and watching podcasts for the past 2 years which has given me the drive to invest in real estate with small steps.
I would like to know if it's better to buy a apartment complex in Tampa/Orlando under $2,000,000 with a 8 to 9% cap or stick to NYC (Brookyn/ Queens ) where the cap is below 5.5% but the appreciation is greater?
I believe this topic has been discussed in the past but with the market prices, interest rates changing and differing views I wanted to get the latest advice.
Living in New York and knowing how quickly the prices shift with high appreciation there is much to be made but the low cash flow is detrimental to accumulating income from the initial acquisition.
How would you invest, where would you buy and why ?
What is the reason you are looking into apartments? Is it for the cash flow? If so then look at the income per door to compare each. Is it because of the future value? You can't use value unless you sell it or try to get a loan. If you are looking for deals in Florida I can help.
Initially I am seeking apartments for long term cash flow investments . I understand that appreciation in NYC is different compared to Florida which is why I am debating if I should choose cash flow over depreciation .
Then take the NOI from each property and divide it by the number of units. That will give you a number that tells you the profit per unit. Then compare that to any property you are looking at and the one that has the highest income per door is likely to give you more profits. Also look at the cash return on your investment and compare to the different properties you are looking at.