New York City, NY · Member since 2014 · 12 posts · 11 votes
Hello BP,
I currently live in NYC and I'm considering of buying property in NYC for the sole purpose of renting them out to tourists.
I've tried this initially in my current apartment and came to the harsh realization that the law is not on your side and I came very close to being evicted myself. I made quite a bit of money during the summer season but it all ended when a tourist asked my doorman "where is apt## because im staying there for a few days"
Is there anyone on this forum that rents out their NYC property to tourists and has overcame the legal hurdles? How did you overcome the legal risks (avoid doorman building, etc?) Is this an industry that is worth entering now or is it close to saturation in NYC?
Hi Andrew, there are people that do this in NYC but remain very quiet about it because as you've already found out, one can get in trouble real quick whether you're the owner of the property or subletting. Even SRO properties (single room occupancy) are being curbed with new laws hitting the city.
It is really not a sustainable investment strategy.
Hi Andrew, there are people that do this in NYC but remain very quiet about it because as you've already found out, one can get in trouble real quick whether you're the owner of the property or subletting. Even SRO properties (single room occupancy) are being curbed with new laws hitting the city.
It is really not a sustainable investment strategy.
Thank you @Jonathan Marcus, I figured as much. I was just hoping on a loophole (other than owning a house) that can be leveraged.
Since you are from NY, what areas near NYC would you suggest I look into for multi-family cashflow properties? This will be my first investment property and I want to achieve a 10% return if possible. I was considering of looking into college towns where there is sufficient demand.
I would appreciate any guidance that you may have.
I know someone who did, however, did not turn out well either. A friend of mine who is the president of his co-op board found out one of the residents was doing this. He was caught because one of the guests brought a bed beg infestation and that spread to neighboring units. The owner faced severe fines, in the several thousands. Would not recommend with co-op.
@Andrew Potievsky to get that type of return, you should probably consider the boroughs -- Brooklyn, Queens & Bronx. Across the Hudson river over in Hudson County NJ -- Jersey City, Union City, Weehawken should also be on your radar.
Figure out your investment strategy so you know what type of properties you should be hunting for.
@Andrew Potievsky you are a few years late to the game, there were people renting out entire floors in non doorman buildings all over the city especially UES and just running an arbitrage business on a large scale.
I would not suggest getting into it now, the easy money has been made.