Home Buying in 10021>Question Details

Arkhere, Other/Just Looking in 10021

What is the best area where you can buy a profitable multi family home in the tri state area and still put a small amount down?

Asked by Arkhere, 10021 Mon May 17, 2010

Investment real estate

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3
Are you planning to live in this property, or it is purely an investment? Your answer to this question will determine how much you can borrow, at what interest rate, and even how much you will pay for insurance. So this is the most important question by far.

If you plan to live there and commute to Manhattan, my recommendation within New York State is Queens or potentially, Brooklyn. If you are looking purely for an investment, my recommendation is upstate New York, where I own a couple of multi-family properties that do well. In fact I believe upstate New York is one of the top 5 places in the USA for investment for cash flow. (I also own in Georgia and suburban Detroit, which are also good investments for me, but not as good).

Understand that if you are buying purely as an investment, in most cases "a small amount down" is not going to be possible. You would need to have sterling credit and high income, and even then it would be tough in the current lending market.

So, if you want to get into this kind of investment, buying a 2-family or 3-family you also will live in would be the far easier path.

Karla Harby, VP
Rutenberg Realty
kharby@rutenbergrealtyny.com
0 votes Thank Flag Link Thu May 27, 2010
arkhere:
Anna's direction is right on. Find out what your borrowing capacity is and then match that up against your goals. What does profitable mean to you?
Depending on your personal investing experience and knowledge you may already know that In real esate investing, what appears more profitable is likely to have higher risk. The area might be more transient, school deteriation, developement or other external factors may increase vacancy risk. On the other hand, a property in an area with no new detractions might appear to cash flow quite easily, but with the 35 year old windows, inefficient furnace, and roof nearing the end of its life the need for repairs can complicate or prohibit a deal. By considering your tolerance for risk you will be able to guide yourself better or interact with professionals who can seek out offerings that match your goals.
Regards,
0 votes Thank Flag Link Wed May 19, 2010
It depends on what best is to you and exactly how small of a downpayment you were considering, your finances, etc.--if you haven't done so yet, do visit with any qualified loan officer(s) first, see exactly what your budget can handle and check your credit score--their scoring is often different.
0 votes Thank Flag Link Tue May 18, 2010
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