Multifamily investments in NYC/Manhattan

10 Replies

Hi everyone,

I was wondering whether you think it is a good time to invest in multi-families in Manhattan (ranging from 3 to 20 units) or neighbouring areas. I am looking at Harlem, Astoria, Brooklyn. Upper West Side also has some opportunities but a little out of price range for us.

Also, any thoughts on rent stabilised?

Thanks,

Cristiano

At this point it seems like it's still catching a falling knife in many (if not all) of the high cost primary markets. We're still in the midst of covid and additional lockdowns are probably on the way. I'm not an expert on NYC investing, but I bet the smart money is waiting and watching for the real deals to start coming up.

Hi Cristiano,

I have a bit of a different take than Taylor. I'm native to Brooklyn and I actually think now is a really good time to look for deals. I'm currently doing this with a few clients. Cap rates have increased to the point where the numbers can actually work in parts of Brooklyn and Queens, I'm not as certain about Manhattan. 

I just sent you a note to connect, happy to share my insights and help wherever I can.

Josh

Hi Cristiano, I work as a landlord's agent in Uptown Manhattan primarily. Happy to chat about some opportunities in that specific market. I am also looking to buy in that area as that is where my business is so there's a slight edge to be had.

Originally posted by @Taylor L. :

At this point it seems like it's still catching a falling knife in many (if not all) of the high cost primary markets. We're still in the midst of covid and additional lockdowns are probably on the way. I'm not an expert on NYC investing, but I bet the smart money is waiting and watching for the real deals to start coming up.

Hi Taylor, thank you for your thoughts. That's what some property managers told me. However, it is always hard to know when a market reverses. And when it does, deals are gone. But I have researched the market for a while now. Although prices are negotiable, they are far from motivated sales.

 

Originally posted by @Joshua Heller :

@Efraim L. that is a really good point. Essentially everything is in favor of renters right now from a legal perspective with the new legislations. 

You are right, the political situation doesn't seem to favour landlords. Increase in taxes and regulation is the biggest risk. Cap rates have increased but they are still around 5% or less, so not a lot of margin for safety... 

Originally posted by @Efraim L. :

Hey Cristiano,

Local NYer here and I kinda agree with @Joshua Heller . But, as a local attorney, I want to warn you about the downsides of the anti-LL laws in NY especially in rent-stabilized properties.

Thank you Efraim. I have looked at the legal side and I agree that is risky. I would be happy to take some risks if the upside was worth it, but at the moment cap rates are still compressed, so maybe not worth it.