What areas did you have in mind? You will also have to go with a condo or fee simple property. There are multiple areas outside of Manhattan, or even NJ that offer great value for a multi family home you are looking for. I am a licensed NY State Assistant Appraiser who can hel you break down income statements for your proposed income producing unit, and find you the property that gives you the capitalization or return rate you are comfortable with for your investment. Please feel free to reach out to me.
Next you will want to ask yourself how long will you be holding these properties, are you investing long term say for 10-20 years? While the market has depreciated in NYC since 2008, prices are level and in some neighborhoods they are rebounding slowly, with the emphasis on slowly. We may see a 2-5% yearly gain over the next 5-10 years.
Getting a positive cash flow, with 20% down is not always an easy task. The median sales price in Manhattan is $846,000, obtaining 3 units for $600,000 cash without financing will be a daunting task. The good news is interest rates are very low, but since you are not financing a primary home, one that you are living in, you may not get the best rates and may need to put more than 20% down on each unit. I can also reccomend a local mortgage banker who is best qualified to assist in discussing the current lending criterea for investors. It is also important prior to executing a contract to qualify the building in the sence of investor saturation. If there are too many non owner occupied units in a particular building, financing will be limited. I would be happy to discuss this further with you and see how I may be of assistance.
Prudential Douglas Elliman
As a fellow Australian who currently lives in NY I hear where you're coming from. For obvious reasons this is very attractive to Australians.
First up, as already mentioned here, you need to know your exit strategy. Is this short term or long term hold? Are you looking for cash flow? Probably not. Seems like you are thinking capital gains in the long term to me. I suggest you find a good lawyer who understands the tax implications both here in the US and for you as an Australian. Do you currently reside in Australia or elsewhere? I have a NY based law firm who specialises in just this kind of transaction as I have been working with others like yourself looking to make hay while the sun is shining.
If I had $600k in cash, I'd use it as a deposit on the three apartments you are hoping to acquire. There are banks that will provide up to 65% LTV and I'm more than happy to make the introductions for you. As you do not indicate whether this is your limit, I'll leave it at that. If this is your limit, however, and you still wish to follow this route, I would suggest looking in either upper Manhattan, such as Harlem, or in Brooklyn neighbourhoods such as East Williamsburg or even Bushwick.
While these areas may not be in trophy areas, they are in your budget. With $600k you can really only afford one, maybe two properties, however this will be a stretch. I would suggest one and keeping reserve funds for common charges, taxes and unforeseen expenses. Returns are around 6% give or take. Doesn't sound so great unless you understand the potential upside - and again, I'm sure you do.
As a final note, the foreclosure crisis has not affected New York City as much as it has others such as Detroit, Phoenix, and much of Florida. You will be hard pressed to find such 'deals' here as many savvy buyers recognise the inherent strength of the market. It is a global capital of media, technology. art, fashion, finance and learning. Many corporations are based here and consequently, demand has only slowed, not ground to a halt.
All the best with your hunt.
Another thing to consider is that Coop are not good investment vehicles as boards make it difficult to sublet. Condo are the better investment but again, your on hand cash is a problem as Condo outprice similarly sized Coops by well more that $100k. You may find that you'll need to consider Studios rather than one bedroom apts if you want to make this work but again, your dollar amount is working against you. Good luck.
Many of us brokers have various skill sets and ideas to how to best assist you. I think you should contact a few and work with one you feel most comfortable with. That said, I have many options that I can assist you with in acquiring property but I need to know your exit strategy or help you develop one to maximize your purchasing power and profits. Thanks for posting this question and I look forward to hearing from you soon. Feel free to email, call or text message.
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Gary N Beydoun,Licensed NY/MI RE. Broker
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I will need more information to give you an more accurate answer. The net rental return depends on the type of property that you purchase and if it is a 3 unit condo/coop or a three family property.
Please give me a call to discuss further. I know that there are some great properties of interest to you in the Bronx that are completely renovated and vacant that will offer a great return on your investment.
Licensed Real Estate Agent
1408 White Plains Road
Bronx, NY 10462
Where do you wish to buy these three units?
The price and the rental will all depend on the location...
Please contact me to discuss at firstname.lastname@example.org
I am a sr associate broker and I am associated with Citi-habitats.
I am a hybrid agent, ie.e I do both renatls and sales.
I help my clients buy and I do help them rent their property right after. can discuss your requirements.
So please contact me at email@example.com
Sr Asso Broker