Buying Apartment Building in Brooklyn

New York City · Member since 2025 · 2 posts · 3 votes

In both Brooklyn and Queens, I see apartment buildings like this one - https://www.zillow.com/homedetails/695-Meeker-Ave-6-Brooklyn... - which seem like a reasonable price for the area. This one is 1.1M for a 6 unit apartment building, in the area typically a solo 2 bedroom condo is in the 1-2M range.

Has anyone purchased properties in NYC with these prices? What is usually the catch?

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Abel CurielBusiness Member

Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes

1mo

Quote from @Rishi Malhotra:

Has anyone purchased properties in NYC with these prices? What is usually the catch?

Hello Rishi, and welcome to BiggerPockets!

The catch here is that this is most likely a rent-stabilized building.

Income for properties like this is much lower than that of free-market buildings.

For example, the subject property earns $101K in annual gross income while a free-market THREE-UNIT building in the same neighborhood would gross $125-145K annually.

NYC's policies are already considered to be 'tenant-friendly,' and that is even more so the case for rent-controlled & rent-stabilized buildings.

Lastly, we are anticipating a 2-year rent freeze for buildings like the subject property.

I'd recommend mixed-use buildings in select neighborhoods, small multifamily buildings i.e. 2-4 units, and other free-market buildings.

All the best!

Abel

REbuild Team - eXp Realty5234 Reviews

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Greg Kasmer
Rental Property Investor · Philadelphia, PA · Member since 2021 · 774 posts · 500 votes
1mo
@Rishi Malhotra - Have you run your own pro forma on the property? I would encourage you to do that and dig into what the property might cash flow. Good Luck!
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Abel CurielBusiness Member
Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
1mo
Quote from @Rishi Malhotra:

In both Brooklyn and Queens, I see apartment buildings like this one - https://www.zillow.com/homedetails/695-Meeker-Ave-6-Brooklyn... - which seem like a reasonable price for the area. This one is 1.1M for a 6 unit apartment building, in the area typically a solo 2 bedroom condo is in the 1-2M range.
Has anyone purchased properties in NYC with these prices? What is usually the catch?

Hello Rishi, and welcome to BiggerPockets!
The catch here is that this is most likely a rent-stabilized building.

Income for properties like this is much lower than that of free-market buildings.

For example, the subject property earns $101K in annual gross income while a free-market THREE-UNIT building in the same neighborhood would gross $125-145K annually.
NYC's policies are already considered to be 'tenant-friendly,' and that is even more so the case for rent-controlled & rent-stabilized buildings.
Lastly, we are anticipating a 2-year rent freeze for buildings like the subject property.
I'd recommend mixed-use buildings in select neighborhoods, small multifamily buildings i.e. 2-4 units, and other free-market buildings.

All the best!
Abel
REbuild Team - eXp Realty5234 Reviews
Website View Page
6 Reply
Dan Ikon
Rental Property Investor · Member since 2025 · 85 posts · 35 votes
1mo
New York City - still the best place to make RE money, even in today's political climate. Focus on dwellings under 6 units - those are not subject to rent control. Also, look in Opportunity Zones, which (surprisingly) can even be in "B" neighborhoods. That will save you thousands in capital gains taxes and depreciation recapture. The strong rental demand is the key.
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Mendy J.
Investor · NY · Member since 2026 · 121 posts · 42 votes
1mo
The catch is very simple, big apartment building owners of New York City are selling like crazy due to the socialist policy of our new mayor.
the rent freeze, especially is something that will kill the apartment building market in New York City.

be aware a nonpayment eviction a New York City usually takes between 18 months and two years if you're comfortable with that situation and the numbers makes sense. Just go ahead.
Still such deals can have major value ads if you are actually able to convert them into condos which that will dramatically increase the value in New York City

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Yvinson Pierre
Member since 2021 · 8 posts · 0 votes
1mo
Rishi — the catch usually is not the $1.1M sticker vs a $1–2M condo. Those are different products.

695 Meeker as a 6-unit at ~$1.1M with ~$101–107k gross is a ~10–11 GRM. If it is rent-stabilized (likely in that pocket), you do not get condo-like income and you may get a rent freeze. Price per unit looks cheap next to a Greenpoint condo; income per unit is the number that matters.

Before you chase "cheap vs condo," run the actual T-12: in-place rents, stab status, taxes, insurance, and vacancy. If you have those, reply and I'll run cash flow / cap / DSCR on 695 Meeker.

Post those four. Tell me when they’re up.
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Rishi MalhotraPro Member
OP
New York City · Member since 2025 · 2 posts · 3 votes
1mo
Thank you all! Really appreciate the advice and insights you have given me!
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