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I'm thinking about the possibility of buying a multifamily property in Manhattan. I'm graduating college in May and expect to be making at least a $60,000 salary, and more if there is an uptick for working in New York. I'd like to buy on the East Side in an area like Harlem or LES. Somewhere like Greenpoint, BK would be cool to me, but it'd be harder for me to justify the purchase; I'm from Chicago and already live in a neighborhood that looks/feels like Brooklyn and Queens, and I could buy an apt building here for a third of the price.
I don't care if it's a nice building so long as it's legal and standing up on its own. From what I understand, I don't think any part of Manhattan is so dangerous that I wouldn't live there. I don't really mind if I spend a high percentage of my income on a property because it is the only large purchase I intend to make for the foreseeable future, and I am very thrifty otherwise. I also ride a bike everywhere, so I don't have a need to live in a trendy/walkable area near transit. Any thoughts on this? Is there no chance that I could ever do this?
I'm thinking about the possibility of buying a multifamily property in Manhattan. I'm graduating college in May and expect to be making at least a $60,000 salary, and more if there is an uptick for working in New York. I'd like to buy on the East Side in an area like Harlem or LES. Somewhere like Greenpoint, BK would be cool to me, but it'd be harder for me to justify the purchase; I'm from Chicago and already live in a neighborhood that looks/feels like Brooklyn and Queens, and I could buy an apt building here for a third of the price.
I don't care if it's a nice building so long as it's legal and standing up on its own. From what I understand, I don't think any part of Manhattan is so dangerous that I wouldn't live there. I don't really mind if I spend a high percentage of my income on a property because it is the only large purchase I intend to make for the foreseeable future, and I am very thrifty otherwise. I also ride a bike everywhere, so I don't have a need to live in a trendy/walkable area near transit. Any thoughts on this? Is there no chance that I could ever do this?
You can't do it on 60k. Property is much more expensive here than you think, waaaay more than Chicago. Manhattan is out of the question for your budget, BK and Qns maybe but you'd still need more than 60k for anyone to approve the loan.
Most lenders would like a to see, a working history (ideally with progressive income increases) of more than 3 yrs, that seems to be a an issue in your case.
Also a 2-family house in good areas of Brooklyn or Queens start in the 600k
for which you'll need at the very least 3.5% (21K) (assuming its an FHA loan) in addition to extra money for closing costs.
And I'm not even go into Manhattan prices. As they are clearly out of reach for the type of income you expect to earn.
I don't care if it's a nice building so long as it's legal and standing up on its own. From what I understand, I don't think any part of Manhattan is so dangerous that I wouldn't live there.
Unless your parents or someone else is giving you a lot of cash, you can't buy a property on $60k income straight out of college.
And based on the above statement, you have A LOT of research to do.
You can afford ~$1,500 rent. Find a place to rent, and educate yourself more on NYC, then save up a lot of $$$ and consider purchasing a home. By then you might find yourself back in Chicago.
I'm thinking about the possibility of buying a multifamily property in Manhattan. I'm graduating college in May and expect to be making at least a $60,000 salary, and more if there is an uptick for working in New York. I'd like to buy on the East Side in an area like Harlem or LES. Somewhere like Greenpoint, BK would be cool to me, but it'd be harder for me to justify the purchase; I'm from Chicago and already live in a neighborhood that looks/feels like Brooklyn and Queens, and I could buy an apt building here for a third of the price.
I don't care if it's a nice building so long as it's legal and standing up on its own. From what I understand, I don't think any part of Manhattan is so dangerous that I wouldn't live there. I don't really mind if I spend a high percentage of my income on a property because it is the only large purchase I intend to make for the foreseeable future, and I am very thrifty otherwise. I also ride a bike everywhere, so I don't have a need to live in a trendy/walkable area near transit. Any thoughts on this? Is there no chance that I could ever do this?
Quote:
Originally Posted by Alkonost
You can't do it on 60k. Property is much more expensive here than you think, waaaay more than Chicago. Manhattan is out of the question for your budget, BK and Qns maybe but you'd still need more than 60k for anyone to approve the loan.
Agreed. We have a 6-figure income and getting a mortgage on a single family wasn't that easy. OP, there is no guarantee what you hope to make on salary. Even if you hope to make $80k by yourself, you won't be able to maintain the building. It almost sounds like you're looking to be a "slumlord" by not caring what the building is like or where it is. Running a multifamily unit requires time and money and if you don't have the time or know-how to fix things yourself, you'll need a super or need to call repair men. They need to get paid.
Agreed. We have a 6-figure income and getting a mortgage on a single family wasn't that easy. OP, there is no guarantee what you hope to make on salary. Even if you hope to make $80k by yourself, you won't be able to maintain the building. It almost sounds like you're looking to be a "slumlord" by not caring what the building is like or where it is. Running a multifamily unit requires time and money and if you don't have the time or know-how to fix things yourself, you'll need a super or need to call repair men. They need to get paid.
It's also not fun being a landlord. I lived in a multi-family (we owned it) in the Bronx before moving to Manhattan, and it's more than just maintenance to worry about. We had tenants who turned out to be drug dealers, and we had to go through lengthy/costly eviction processes, and they trashed the apartment before the City Marshall arrived to kick them out. The cost to get the apartment back into rent-able condition was steep. Our next tenant was a NYC police officer He was a great tenant.
If you want to buy a two-family home in Greenpoint and your mom and pop lend you about $800,000, you should be able to do it if you can get a 3X mortgage on your 60K salary.
It's also not fun being a landlord. I lived in a multi-family (we owned it) in the Bronx before moving to Manhattan, and it's more than just maintenance to worry about. We had tenants who turned out to be drug dealers, and we had to go through lengthy/costly eviction processes, and they trashed the apartment before the City Marshall arrived to kick them out. The cost to get the apartment back into rent-able condition was steep. Our next tenant was a NYC police officer He was a great tenant.
You're right about that. I know of so many horror stories of hardworking landlords that get stuck with horror tenants. You never know what type of tenant you're going to get.
I'm set on being a landlord because people pay a huge premium to only maintain one property. It seems to me that it's about 2-2.5x the cost per unit for the privelage of not having tenants. I am very handy with things and do my own repairs in my current apartment that I am renting. I'm looking to live in the building (and thus not be a slumlord), I was merely trying to emphasize that I'm not looking for a fancy place with high-end finishes or anything. I know that Manhattan is expensive, but I know it's not all million dollar condos out there because I have looked. Ideally I would be making at least 80k, possibly more if I can get certain promotions, but I haven't looked deeply into the availability of positions as a process engineer in NYC. The biggest hurdle for me will be the down payment, but I already have some money saved, and I might be able to borrow some of it from family.
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He was a great tenant.
