Investor · Huntington, NY · Member since 2016 · 8 posts · 0 votes
I just ran a property through the calculator that is for sale in Huntington, NY. How can you do SFR properties with positive cashflow here in Huntington with the taxes as high as they are?
Rental Property Investor · Freeport, NY · Member since 2016 · 61 posts · 18 votes
9y
I agree, the RE taxes on Long Island really make it difficult to cash flow on a house.
I bought a co-op in Freeport. Its a studio. Paid 58,000. Put 10,000 down. My mortgage is 240/mo. Maintenance is 460/mo. This apartment I live in is renting for 1200-1300/mo.(that's what the studios are renting for) I put nothing into it (no renovations) as it was redone. This apartment would definitely cashflow. What I like about this is the Capex is minimal because I'm only responsible for two kitchen appliance, air conditioner and electrical.
Also, the board interviews and approves tenants. To them, it's in their best interest to make sure that tenants pay their rent and don't squat. They are "sort of" managing the rental process and it's FREE!
Is it me or does a co-op make sense for a buy and hold?
I'm also looking in Florida, Fort Myers and Cape Coral.
It is rare that any SFH will cash flow without a secondary suite. Most SFH investors must pay down the mortgage and ignore any return on the equity to actually have what they consider cash flow.
There cash basically sits dead in the property in exchange for perceived or "forced" positive cash flow. If they do attribute any return to the opportunity value of cash the flow dwindles to a trickle from the property itself in most cases.
Owner Landscape Construction Co · Brentwood, NY · Member since 2015 · 37 posts · 11 votes
10y
very hard to do on long island period without having a second apartment because the taxes are so high here. Ive recently started thinking about investing in some areas of florida for a few reasons. One is I hope to be living there full time within 13-15 years, two is I almost have enough to buy a house down there cash 60-80k range with taxes around or under 1,000 per year. yeah you aren't going to cash flow $1000 a month like you would up here with a second apartment but I could acquire properties down there a lot easier because of the ability to purchase with cash and use the brrr strategy.
Rental Property Investor · Freeport, NY · Member since 2016 · 61 posts · 18 votes
9y
I agree, the RE taxes on Long Island really make it difficult to cash flow on a house.
I bought a co-op in Freeport. Its a studio. Paid 58,000. Put 10,000 down. My mortgage is 240/mo. Maintenance is 460/mo. This apartment I live in is renting for 1200-1300/mo.(that's what the studios are renting for) I put nothing into it (no renovations) as it was redone. This apartment would definitely cashflow. What I like about this is the Capex is minimal because I'm only responsible for two kitchen appliance, air conditioner and electrical.
Also, the board interviews and approves tenants. To them, it's in their best interest to make sure that tenants pay their rent and don't squat. They are "sort of" managing the rental process and it's FREE!
Is it me or does a co-op make sense for a buy and hold?
I'm also looking in Florida, Fort Myers and Cape Coral.
Investor · Huntington, NY · Member since 2016 · 8 posts · 0 votes
9y
Ok, so if buy and hold on SFR is not feasible for a person to invest in. How can someone with no significant capital make a good ROI on RE investment on Long Island?
Investor · Albany, NY · Member since 2017 · 58 posts · 22 votes
9y
Henry Chandler the reason you're finding it difficult is because the operating expenses are high on LI. You need to house hack here to start IMO. Buy a multi family, live in one unit, rent out other.
Real Estate Agent · West Sayville, NY · Member since 2017 · 21 posts · 7 votes
9y
Rich is correct, house hacking is a great idea. Unless you're open to looking in other areas in Suffolk County where taxes are lower, Huntington may be difficult to realize the ROI you're looking for. Or you can always find deals and wholesale...no $$ out of your pocket
East Islip, NY · Member since 2017 · 14 posts · 6 votes
9y
Im still in the early stages of exploring out of state as of now NC and Florida are at the top of my list. However I believe that areas east like belport / medford can cashflow you just need to be very selective as there are some lower taxes on "some" homes. Rents appear to be safely over $1500 on small SFH in these areas and taxes can be found under 5 even 4. I believe the catch anywhere on Long Island is to get a true deal otherwise any long island size mortgage will hinder cashflow even with low taxes.
East Islip, NY · Member since 2017 · 14 posts · 6 votes
9y
@Rich Becker I agree that there is not much chance of appreciation. However there is an easier entry price and better chance of some forced appreciation if you pick up a foreclosure or auction home. Personally my interest is in cashflow and when you look out east you can find homes that sell for similar values to out of state and have greater rent to taxes ratios than most sfr's in central suffolk and nassau.
This is strictly my view from running some numbers as I explore options.