Is it a Good time to buy ? Bronx Nyc
First time home buyer here looking to buy a three unit house in the Bronx . As my first investment property any tips or advice for new Investors such as myself.
Good morning @Osvaldo Cintron, yes I believe it is a very good buy to purchase here in the Bronx. I own four properties here including three multi families. All of which I have purchased over the last four years. The demand for rentals is very strong and the purchase price is low compared to other Burroughs. Plus a lot of the housing stock is newish, so you won’t have to run into issues with lead paint, rewiring ect when it comes time to remodel.
I’d be happy to jump on a call to answer any questions you have about the borough, purchasing multi families, being a landlord, etc… Just message me if you want to learn more.
Hey @Osvaldo Cintron - I agree with what Andrew mentioned above, but I'll also add that if you're a strong buyer then you're going to have an even better time if you wait a few months. The FED has indicated they will raise interest rates again by end of July 2022.
Yes this means your loan approval will be lower and your payment higher, but it also means property prices will drop due to the overall drop in buyer's demand.
This goes to the main question: What's your investment goal?
If it's to buy a property, house hack for several years and sell for a profit, then I recommend waiting. After waiting, you can purchase, and then refinance when the rates eventually drop.
Shoot me a DM and we can chat further, thanks and good luck.
My YT channel has a recent video about this, check it out.
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Broker New York (#10401359681)
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@Osvaldo Cintron NYC market is very balanced right now, one of the best markets in the US. Enough inventory, reasonable prices. As a first-time investor, you want to work with an investor-friendly agent who can help you run the comps, numbers, analysis, projections etc.
Yes - the Bronx offers a wonderful balance between yield, cash flow and future appreciation. Lots of new development happening along the subway lines and the South Bronx has improved tremendously over the last decade.
If you can get a 4 unit and a basement, that would be ideal and create major cash flow and equity creation, plus you can not worry about a property manager and boost your yield. FHA can let you accomplish this without too much down.
Please do keep in mind that although cash on cash returns may be paltry as a relative percentage, absolute dollars may be comparable.
Moreover, the majority of your returns over the long run (10-30 years) will come in the form of appreciation, principal paydown or loan and tax benefits.
The Bronx is a great market, especially for appreciation over the past few years. The landlord/tenant laws are definitely heavily weighted to the side of the tenant unfortunately so its important to screen your tenants well and not take over existing tenants if at all possible.