Investing in NYC with high returns

10 Replies

I’ve been a real estate agent for two years and I’m looking to get my start in my first property. I live in nyc and most single to multi family properties don’t really cash flow and the barrier to entry is very high. What areas around New York City have properties with a lower entry barrier and the properties cash flow easier. Thanks in advance for your advice.

NYC is expensive and cash flow is tough unless you buy with a hefty downpayment. In NYC it's about the Appreciation. I have 2 two family houses in the Bronx in a "B+" area and I can't afford to buy the properties again because they appreciated tremendously.  Areas around NYC are mostly SF owner occupied in the suburbs with very very high taxes and not worth it for cash flow.  You may find something in the outer boros like the Bronx but entry in a B neighborhood for a 2 family will be in the 650K + range. 

@Mindy Gratt I purchased in Dutchess County NY.  Property is cash-flowing very nicely and was super low cost.  Feel free to reach out if you have any questions.

Originally posted by @Scott Wolf :

@Mindy Gratt I purchased in Dutchess County NY.  Property is cash-flowing very nicely and was super low cost.  Feel free to reach out if you have any questions.

Hi Scott, Your property in Dutchess County is it single or multi family? 

I was looking in Orange County but the taxes there are pretty high so the numbers don't work. Even D and F areas, which I have no interest in, have high taxes.

I have properties 2-3 hours drive from NY, and they all cash flow positive. Highland County. The main problem is finding a contractor that shows up and do quality work. Also, you will need to self manage. You probably won't find property manager out there. I tried in vain.

Watch out for the school tax, which is around 2K on top of the property tax. 

@mindy gratt

Were you originally planning to live in the property as well (house-hack)? If so I know the Bronx has areas, but not sure you'd want to sacrifice location by living in a C/C+ area... I have a 3 fam I bought 4 years ago with FHA where the other 2 units covered all expenses. I'm about to move and the building will cashflow about $2k p/month. It has appreciated significantly since purchase, but I'm pretty sure would still cashflow with market rents (my rents are a little under market), but havent run the numbers. All that to say, I'm pretty sure there are areas of the Bronx (although becoming "hot") that you could still find the cashflow, just may have to be in a C area :-/

@Mindy Gratt

After a very long time of looking how to get into buy and hold and about seventeen years in the real estate business, I started to look in parts Brooklyn and parts of Queens. I starting to see 2-3 family in Brooklyn in C to B- areas going for decent prices with good rent rolls. The catch is the types of tenants and how they pay rent (vouchers in some that I looked at). I'm not very interested in vouchers at least not as a newbie. I'm sure others investors do well and know how to manage those types of rentals. In Queens I started to see properties in the south to south eastern part of the borough that look promising.  Anything near Jamaica or areas near the Van Wyck Expwy (I678). I could be wrong the way I'm looking at things but the number are making sense to me. In Queens the neighborhoods range from C+ to B+ with working class families and good income. I'm finally ready to pull the trigger on something, but so far non of my offers have been accepted but I'll keep trying until something happens. I'm also looking for an investment apartment/condo in Providence, Rhode Island. I'm looking near Brown U and Rhode Island School of Design. I have a son going to school in that area and the numbers work out better to buy a two bedroom apartment and rent the other half to another student. If anyone knows of a good deal within 30 min walking distance from either school, let me know.

Hi All, I am thinking in investing in my first multi family in Queens and in my research online I am seeing that I can buy a multi family house for about 750k with 3 3br/1bh rentals.  Then rentals I am seeing now are about 2300-2500 per month for each unit.  Not too bad.  Been trying to focus in Jamaica, St. Albans, Laurelton and Rosedale.