Investing in a property to rent out

[mathjak107]

There are great ways to make money in nyc real estate but you need to know how to play the game and have the contacts

Buying packages of coop apartments with original rent stabilized tenants and buying out the tenants leases can net tons of profit when sold

But it is risky and you can’t buy one or two . We had to buy 9 in a package

[hotkarl]

Originally Posted by mathjak107

There are great ways to make money in nyc real estate but you need to know how to play the game and have the contacts

Buying packages of coop apartments with original rent stabilized tenants and buying out the tenants leases can net tons of profit when sold

But it is risky and you can’t buy one or two . We had to buy 9 in a package

Well look at you Mr. Real Estate mogul! Lol

[mathjak107]

Not anymore , all sold and gone…I own no real estate anymore nor do I want any

[NJ Brazen_3133]

Originally Posted by gx89

NYC rentals are 110% about appreciation. After the insane maintenance fees and gigantic mortgage assuming you put down 20% your not making $$ a 1m apt with a 750k note and $1500 maintenance puts you around $4600. The rent will barely cover your costs and you may be under water. If your growing 10%+ a year it’s fine. W/o a high appreciation rate it’s a horrific financial move.

I guess you missed the "decades ago" I wrote down. My boss/company is doing great with their Manhattan properties. Even with the one that has a lot of lower income tenants that pull all sorts of stunts with the courts and not pay rent. Funny thing is, during this whole pandemic, non of our tenants have failed to pay rent besides the ones that were habitual before the pandemic happened.

We even had two properties in mid town that had 50% vacancy during height of pandemic, but only stayed that way for about 6 months. Then the next few months after that, they are back to full capacity. My bosses have even refinanced the buildings at a cheaper rate for even more money, and used leftover to buy more property. I really need to ask for a bigger raise.

[tj2013]

You will have more fun and maybe luck just betting on football!
Li real estate is a bad bad idea!

[Monello]

Real estate is a great vehicle to build personal wealth. It's a passive activity but does sometimes require your time, depending on how you choose to manage the property.

It's not all profit though. At some point the roof needs replacing. The hot water heater won't last forever. Carpet wears out and walls need to be repainted.

I self managed for a couple of decades. For the past 6 years, I've let professionals manage the day to day. So far in my case, the percentage I pay is well worth it. Their application process will most likely weed out poor prospective tenants. When I did it myself, I had a few that didn't prioritize paying their rent. I have had zero months with non payment of rent. In hind sight, I should have had pros handle it years ago. Live and learn.

I got into this in my late 20s. Other family members tried to convince me that it was a bad use of my money. I'm glad I stayed to course. The real bonus is in appreciation, so you have to be in it for the long haul.