New York Investing Numbers

[Nicholas Mann]

Hello everyone,

I am currently analyzing potential rental properties in the NY tri state area, mainly consisting of Westchester, NY suburbs.

I have analyzed multiple deals on the MLS for basic 2 family homes and only seem to find about $200-$300 a month in cash flow if any, and about 2-3% Cash on cash ROI.

I understand this market is expensive but I see plenty of MF homes being sold, so I’m wondering what numbers are people looking for in this area?

Thanks

[Alex Horelick]

Hey @Nicholas Mann,

It's a very competitive market over here. Cash flow numbers are not the strength of this market however the power of this market is in the high quality of tenants that are looking to rent as well as the strength of the housing values and appreciation! While appreciation should only be the icing on the cake for your investment this is a great market for it! You can certainly get better cash flow numbers by only sticking to value-add properties in this area although that obviously comes with a little more risk. The key here is when a hot deal comes on to be absolutely ready to make an offer and have your realtor ready to spit out offers at the drop of a hat. The inventory moves fast here with the high level of competition!