I am sorry you had a negative experience with your realtors. I work with quite a few investors and since they continue to work with me over several years, I hope they are satisfied with their purchases and services I provide.
Depending on how you want to structure your purchase (how much do you want to finance), its absolutely possible to get positive cash flow on purchasing and leasing out a condo in NYC. Manhattan tends to yield lower cap rate (3% at the most) due to high monthly carrying costs but the occupancy rate at the end of 2012 was above 98% and provided your apartment is priced in line with the market, it will get rented. I also work in a few neighborhoods in northern Brooklyn, where the rental prices and occupancy rates are as high as Manhattan, but purchase prices and carrying costs are slightly lower, it gives 4%+ cap rate and I feel property appreciation in those neighborhoods over next 5-7 years will be higher than Manhattan.
Hope it helps. Feel free to contact me directly if you have more questions and you would like to work with me.
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A quick search shows me that at your price point, the greatest number of condos are in Harlem and the Battery Park/Financial District areas. Very different neighborhoods at opposite ends of Manhattan.
How will you define a positive cash flow? For example, is it simply income vs. expenses? Or will you factor in depreciation allowance?
Call some of the people who have contacted you here. Just as I can usually know fairly quickly if I'm a good match for a potential client I talk to, you'll likely be able to figure that out as well. No agent is a good fit for all clients. If you want to chat, my cell is 310-951-8993. I moved here from California about 3 years ago and was licensed just over 2 years ago. Probably bring a bit of a different perspective than many agents.
Thanks for your responses. My budget is around $600k. My intention is to rent out immediately after purchase so looking towards condos.
While the general appreciation of real estate is a great thing for me, I am looking to make positive cash flow on this deal.
I am hesitant to call a random NYC realtor in my yellow pages. During my home buying process on Long Island, I dealt with a lot of realtors when searching for homes and unfortunately most of them were not very honest. Even the realtor that we ended up buying the house from told a series of lies to move the process along which caused issues at the closing.
That said I would seek advice from a realtor that I feel like I can trust. I understand they are earning a living but I am a qualified buyer and need someone who looks out for my best interest as well.
While I would love to buy an apartment building and could probably pull together the money to afford it, I don't know if I'm experienced enough to sink everything I have into a building. Unless they are cheaper than I'm thinking...
As others have pointed out, if your intent is to buy an apartment to rent out immediately, it has to be a condo rather than a co-op. I would also like to add that you are talking about furnishing it, which leads me to believe you are thinking about short-term rentals. Please be aware that most condos have a one-year minimum on sublets. Furthermore, the mayor has recently cracked down on short-term rentals as they cut into hotel business, so if you are thinking about a succession of short-term renters, that is problematic. You also say you are looking for "a low sell price with maximum rental price." Right now we are very much in a seller's market. Most properties right now are going for full ask price and above with multiple offers. The bargain days are now behind us. So, the second half, getting a good rent is likely but the first part not.
My advice would be to work with a skilled, experienced real estate agent. We can guide you every step of the way.
Halstead Property, LLC
As you probably know, if you're buying in Manhattan, in most cases you're buying a co op which will almost always require that you live in it initially and then you can often only rent for 2 or 3 of 5 years. There are exceptions to this but they are rare.
So if you can afford it, find a small building that's already a total rental property. If not, find that co op exception or a condo.
Most likely bet is a condo for immediate ownership and ability to rent out without living in the unit first. However, there are also a handful of midtown , tudor city and kips bay coops which allow investors only which fetch excellent rent.
Is there a particular area of the city which interests you & is this a cash purchase/ 1031 exchange?
LMK how I can help further !
Executive Director of Townhouses