Home Buying in 11201>Question Details

Slycind, Home Buyer in 11201

What is a good annual return from renting out a condo purchased as investment in Manhattan or Brooklyn?

Asked by Slycind, 11201 Mon Apr 18, 2011

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I’m an agent working for ReMax NYC Midtown and I’m always doing my research on property and stay in touch with the best professionals. If you simply need advice please email me at KDrake@remaxnyc.com. I'm experienced (but not limited too) with closing deals with rentals in the 11201 zip code. I’ve provided links below regarding any concern you may have.

Finance Advice:
http://www.fpanet.org/LifeGoals/BuyingaHome/

Bank Expertise:
David.Axelrod@bankofAmerica.com

Appraisal Expertise:
LadSurs@gmail.com

Legal Advice:
http://www.lawhelpmn.org/issues/housing/buying-and-owning-a-…

Advice for Buyers:
http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home

Advice for Sellers:
http://www.realestateabc.com/homeselling/

Tax Concerns:
http://www.tax.ny.gov/pit/property/
0 votes Thank Flag Link Thu Nov 7, 2013
I’m an agent working for ReMax NYC Midtown and I’m always doing my research on property and stay in touch with the best professionals. If you simply need advice please email me at KDrake@remaxnyc.com. I'm experienced (but not limited too) with closing deals with rentals in the 11201 zip code. I’ve provided links below regarding any concern you may have.

Finance Advice:
http://www.fpanet.org/LifeGoals/BuyingaHome/

Bank Expertise:
David.Axelrod@bankofAmerica.com

Appraisal Expertise:
LadSurs@gmail.com

Legal Advice:
http://www.lawhelpmn.org/issues/housing/buying-and-owning-a-…

Advice for Buyers:
http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home

Advice for Sellers:
http://www.realestateabc.com/homeselling/

Tax Concerns:
http://www.tax.ny.gov/pit/property/
0 votes Thank Flag Link Thu Nov 7, 2013
Some additional factors to consider:

NYC laws favor the tenant; just ask some of our former clients who tried to sell with aggressive non-paying tenants. Assume 90 days just to get on the docket for Landlord - Tenants court.

Investment real estate can be illiquid as market and financial factors change.

Best to insulate your investment with good tenants. Give us a ring and we'll discuss some creative ideas to protect your interests.

With regards to ROI speak to your accountant and other investors to get a better idea of expectations.

Best of luck.

David Rogoff and Bonnie Chernin
Fillmore Real Estate Branch #19
davidrogoff@fillmore.com
bonniechernin@fillmore.com
917-593-4068 (CELL)
0 votes Thank Flag Link Tue Apr 26, 2011
Dear Slycind:

That is a matter of personal preference. If you can make the purchase and have a positive cash flow each month, that is good. Your question is hard to answer without knowing if there is a mortgage involved or if you are purchasing all cash.

Most investors will want to determine the cap rate. To find out more about that, click on this link:
http://en.wikipedia.org/wiki/Capitalization_rate

With more details of your situation I can offer more advice. Feel free to contact me at any time. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Tue Apr 19, 2011
There are several formulas investors use to decide whether an investment is worth their risk, or not.

I have not found these formulas to be helpful, however. The cap rate is the most common one you'll hear bandied about. I find it much better to go through all the numbers in detail for each individual property I'm thinking of buying, and then decide.

A good condo in NYC has a low risk of long term vacancy, and a low risk of declining rent. But any rental in NYC carries the risk of nonpaying tenants and it takes longer in NYC to get them out than it does most other places. This is the single biggest risk a landlord in NYC faces, in my opinion. It's hard to put a number on that (although I'm sure it's been done.)

The problem with buying to rent in most of NYC is that the rent is too low to cover the real costs of the investment, including risk. So a $350,000 condo unit might rent for $1500-$2500, depending, (in rare special cases more).

Mortgage rates for investment properties are not the same as they are for owner occupied properties. So you simply must find out your borrowing costs in advance for you can do the analysis. Don't forget you also need landlord's insurance.

My advice would be to focus on tax abated units, they are available, to keep your monthly costs down, as a first screen.

I also advise working with a buyer's broker, and I would be happy to help you once you have your financing lined up. If you need help finding a mortgage broker I will send you a link, if you like.

Karla Harby VP
Lic Real Estate Salesperson
Charles Rutenberg Realty LLC
New York City
kharby@crrnyc.com
0 votes Thank Flag Link Tue Apr 19, 2011
Without much information--much will depend on purchase price, exact location and rental demand, size, condition, etc.; if referring to a specific unit/purchase, consult with your tax professional....
0 votes Thank Flag Link Mon Apr 18, 2011
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