2-4 Unit Multifamily Acquisition in New York City

[Account Closed]

Looking for anyone who's brain I can pick about their relevant experience investing in small multifamily in NYC  or other high-cost entry markets around the US-

I work in commercial and am interested in making an investment in one of the outer boroughs of NYC. I can model a deal no problem and tell when the numbers make sense, but I need some suggestions as to how people navigate financing in low cap rate environments where even crappy MF properties are going to run at least 350-400K per unit. I have around 100K cash and dont plan to invest until the next market correction, and will probably have about $150 by the time that rolls around. Still, a down payment on a modest 3-4 unit is going to be around 400K if I were to put down 30-40%. FHA regs are pretty confusing to me and I think that even if I were to occupy, the loan wouldn't be for nearly enough considering their maximums.

Does anyone have suggestions as to how to navigate debt in a situation like this? 

[Llewelyn A.]

@Account Closed

Aidan: You can private Message me. I have been a Brooklyn Investor for 21 years and currently hold a portfolio of 8 multi-family properties, mostly 3 and 4 family buildings including several Brownstones.

David: It may not seem intuitive to you, but there is a LOT of money being made here in NYC.

I for one have made around $10 Million in unrealized profits for my Investors and myself.

Investing in big Metro Cities, you need a reason to trade High Cap Rates. That reason is huge appreciation.

An example of the kind of appreciation I get would typically be like a property I purchased in the year 2000.

The Purchase Price was $140k, $21k down, $8k in closing costs, and approx. $40k of renovations. Total invested, $21k plus $8k plus $40k = $69k.

Today, I can sell the building for at least $1.2 Million. If I were to sell it today, I would wind up with $1 Million, profitting $1 Million minus an investment of $69k = $931k. The ROI on the Sale would be $931k divided by $69k = 1,350% ROI over the 18 year holding period.

But there is no need to sell because this property also increased in cash flow and is doing excellent.

Where else can you get fantastic deals like this?

Either case, I'm not here to preach about investing using Future Value formulas such as Internal Rate of Return (IRR).

I am here to confirm Aidan's understanding of Investing in large Metro areas, and specifically, NYC.