Buying a house in New York County and putting it out on rent. Is it a worthwhile investment?

Asked by Martin, New York County, NY Thu May 27, 2010

I intend to buy a house in New York county by taking a suitable mortgage though I wont be living in it. Instead, I want to rent it out. Can you please advise me whether it would be prudent? Will the rental income really help me meet out the monthly mortgage payments? What is the present occupancy rates for rental properties in New York county? Thanks for info.

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Chris L. Chr…, , New York
Thu May 27, 2010
Martin,
Paul's response is correct. There are many factors to consider when you purchase a property for income.
You should review your objective with a Realtor from the area and a mortgage professional.
On the mortgage side, you'll need at least 20% down, more for a 3-4 family property, closing costs and reserves after closing. Your rate will depend upon your credit scores. Your current, fully documented income must support your current residence and the proposed purchase. We want to be sure that you can afford the property especially if your tenants decide that the don't want to pay you. Evictions are a costly and time consuming process.
Depending upon the condition, additional funds may be required to bring the property to a "rental condition". For instance you'll have to eliminate any hazardous conditions, paint the rooms in neutral colors, stop all air and water leakage, repair the roof, maybe upgrade the appliances and so on.
The Neighbor Housing Services of NYC offers property management classes that you can attend. They also purchase and retore properties that you may be able to afford. You can find them in the phone book and web.
1 vote
Paul Macapag…, Agent, NY, NY
Thu May 27, 2010
Hello Martin,

The best advice i could give you is, speak to an experienced and knowledgable broker in your specific area. That broker should be able to look at the property and give you feed back to see if it fits within your investment strategy. It is also a good idea to have a knowledgable mortgage broker to tell you what you would need as a return on your investment to breakeven and even be profitable. I have worked with a lot of investors and every one has a different investment objective. I would love to give you a simple answer and say yes.. but i am afraid it is much more complicated than that... Is you investment objective long or short term? How much money do you have to put up front? How much did you buy the property for? Are you going to rent your property furnished or unfurnished?... the list of questions goes on and on...

Regards,

Paul Macapagal
917 612 2746
pmacapagal@elliman.com
Web Reference:  http://www.paulmacapagal.com
1 vote
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