Can New York Metro ever cash flow?

Question

Even though the NY metro market has been better than it has been in years, I still cannot see a way for a small time investor to cash flow.

Small time investor (in my mind) meaning someone or an entity owning and operating only a few properties (SFRs or apartments).

I understand that some folks do flip condos and houses and can make a profit, but what about buy and holders - those that like to buy and rent out for some monthly cash flow?

Not only are prices still high, but most of the units here are co-ops meaning 99% of the time, you HAVE to be an owner-occupant & cannot rent out/sublet.  Even IF you happen to find the extremely rare co-op that lets you rent out your unit, you would have to go through the whole co-op board interview and have them know every little detail about your life before they would consider approving you too be a shareholder.

Has anyone here EVER had a cash-flowing property in New York metro (manhattan, bklyn, queens)?  If yes, would you please share how you got there? Thanks!

LISA F. · Answer

Buy 4-5 unit buildings. Anything under 6 residential units are not considered rent stablished or rent controlled so you can charge free market rent. Brownstones are good in areas like upper Manhattan and many parts of Brooklyn and look at city owned properties (HPD programs).

Tommy Giannopoulos · Answer

Co-ops can be such a pain in the you know what. I am actively looking for a multi-family, mixed use property building in Brooklyn.

I am also interested in parking lots Dory and unfortunately, I missed out on a great deal here in Brooklyn. Oh well, on to the next!

Dory Peters · Answer

Although I'm not as highly active in the NYC metro market (at least for residential--I'm most interested in parking lots there), I have contacts there that have told me about some deals that cash-flow positively in Brooklyn (especially 6 or more unit buildings).  I might have heard similar claims for some areas in queens too, and I think I heard about some stuff in NJ around Edison.

I personally have been somewhat leery to invest in any residential or multi-family commercial properties, because I heard some serious horror stories about various rent-control issues.  Nevertheless, I checked out a deal on a 6-unit building in Brooklyn that cash-flowed positively roughly 7 months ago.