1% rule investing in NYC area

2 Replies

Greetings to all investors! Anyone has succeeded getting 1% rental rates on arv? I'm starting out in NYC metro, NJ area and was wondering if it is even feasable or just wistful thinking. I understand 1% rule applies to purchase price and goes south upon refinancing.. To some exceptionally creative investors it may be the norm thought. Thanks for any input! We learn together. BP is awsome place for that! Best of luck to everyone!

1% does not apply everywhere NYC being one of the places that it does not, there are just some cities where it is not close to realistic and an offer at that level would insult a seller.  Find what the right level is for your market or find a different market.

Thank You for your insight! In my market property will not pay for itself with traditional financing. Ex: 3 unit 90 yrs old building (19 railroad ave) costs 799k and gross rent is 4500. Factoring in expenses at 50% and mortgage... You see where this is going... Was looking to find creative ways to make this work. Thank you for opinion!

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