Elaine, Home Buyer in Jackson Heights, Que...

I am interested in buying an apartment budget with approx 250K. for 1-2 BR. Its for investment so I plan to rent it out. I am looking around jackson

Asked by Elaine, Jackson Heights, Queens, NY Mon Dec 28, 2009

heights and it must be close to the trains. I have had issues with co-op not allowing rentals so how would I know if a particular building allows renting..Its my first time investing. So any suggestions are welcome.

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Anu Dutta’s answer
Co op is never a good idea for investment purpose, unless you find some building where they don't care. usually they 10-20% extra in your maintenance, plus they let you rent for maybe 2 years at a time and they make you live there for another few years before you could rent it out again. But there are some co ops they allow rental without any extra fee or any other regulations. You need to follow the house rules carefully and maybe find a good agent who can help you about this. Good luck
0 votes Thank Flag Link Fri Apr 30, 2010
You have to learn a lot before you just buy to invest. Expect 1 empty rental month a year. You have to learn about ROI cap rates and more. Buying hoping it will work out well seldom does work out well.

Try to find some actual apartment owners and investors to find out the right and wrong way to do things. Following the right way gives the best results. <winks>
0 votes Thank Flag Link Tue Mar 16, 2010
Elaine, Condos are the better deal. I own my coop and it took about 4 months to move in; and in addition I am now processing an application for a couple who are interested in a Coop rental. These hard working people are also going through the excruciating process of applications and application fees, references, financial statements, etc.., and finally the interview process, all this for $950 a month. The process same as buying their own coop property. It has been a month and the board yet has not called them. Owner of the coop is just ready to rent. So just imagine what these people are going through.

In my coop building in Jackson Heights, they allow only a two year rental with limited rental capabilities. A fast and easy process is not something you will find in Coops unless you are planning to live there, and perhaps rent it to a relative for a couple of years. Coops are not considered Real Estate so like all others here say, the better choice choose a CONDO property.

If you wish to find Condo's in Jackson Heights area, try for free my website below. You will have all the capabilities of an agent. Get your finances in order so you know how much you can afford. Your financial advisor that you chose will let you know the steps.

Reach me when you are ready. I offer this FREE opportunity to buyers and sellers so I can get feedback on how they like it. Use Internet Explorer, or Firefox for its compatibility.

The difference is here Condo vs Coop: http://www.bankrate.com/brm/news/real-estate/20040214a1.asp

Good luck, and keep in touch. I am interested to see how you did it. Tania
0 votes Thank Flag Link Tue Mar 16, 2010
Hi Elaine. You've had so many responses that I just want to put my two cents in. Here's the scoop on Coops and sublets. First, coops are not really proper investment vehicles for the reasons previously stated by my many colleagues below. Most (just about all) coops will not allow an immediate sublet but there may be a few out there. To find those that do would be like finding the proverbial needle.

The reality of sublets in any bldg is this. You may be able to sublet after one or two years of owner occupancy. House rules should be checked to review any sublet policy. To further complicate things, the application process would be just like a purchase. Full financial disclosure,letters of reference, etc. Not to mention the associated fees. There would also be an interview by the board of the prospective renters. You may also be charged by the coop board, 10% of the annual rent which would go into the building's reserve fund.

By contrast Condos make for a better investment. Much less red tape if any at all. One caveat. Condos will outprice a similar sized coop by $100K+. They do cost more. It may be difficult to rent it out as you would need to cover any expenses involved and hopefully a small positive cash flow.

Good luck with whatever you decide.
0 votes Thank Flag Link Sat Feb 27, 2010
Even if the co-op allows rentals, you are going to have an issue with getting a loan if you are planning to do that. There was one bank that had been doing investor co-ops. I am not sure if they still are, your rate will be very high on an adjustable rate loan, and you will have to put down a substantial down payment, around 50%.
0 votes Thank Flag Link Mon Jan 11, 2010
Elaine, try calling the bldg mgt co's and ask for sponsor units even in coop bldgs. You do not need board approval for these and as long as you do not move into the apt. you can keep it as rental property.
0 votes Thank Flag Link Mon Jan 11, 2010
hello Elaine: this is very good question .Of course you need to have the representation of real estate agent who knows very well not only the area but can help you in the process and research. Is this the first time are you going to buy? Are you pre aproved for an financial institution.? How long have you loking for a property? Are you working with another real estate person? What is your frame time to find a property. I can save you money and time . you email me at gsoria@laffey.com or call me at 917-836-1077 to answer this questions. If you are ready , just do it as soon you can.
0 votes Thank Flag Link Wed Dec 30, 2009
You probably should be looking at condos instead--correct, most co-ops do not allow renting--some of the ones that do may require that you personally live there for a number of years before it can be rented--the number of years, varies from building to building--unfortunately most co-ops have many board restrictions, whereas condos are much more linient.

Anna
0 votes Thank Flag Link Tue Dec 29, 2009
Elaine,

You might be better off purchasing a Condo over a co-op. It is a much better investment choice if you are planning on renting right away. Please take a look at my website, you can sign up for email notification of new listings. Good luck.

Ian Perler
Lic. R.E. Salesperson
(718) 505-9220
0 votes Thank Flag Link Mon Dec 28, 2009
Hi Elaine- there are very few buildings that allow rentals. I can email you listings with that in mind. Some allow rental but only after 1-2 years of living in the unit. Give me call a Terry K 718-614-3167 cell or email me therese.korahais@elliman.com
0 votes Thank Flag Link Mon Dec 28, 2009
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