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Updated over 1 year ago on . Most recent reply
![Jonathan Twombly's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/179849/1621422592-avatar-jtwombly.jpg?twic=v1/output=image/cover=128x128&v=2)
Why we don't invest in New York, even though we're based here
People frequently ask me why I don't invest in deals in New York, even though we're based here. The reason is simple: it's too hard to make money for your investors in New York. That's a huge reason why we invest in the Southeast, along with more owner-friendly laws, a growing population, etc.
But this Real Deal article I just came across says it all: Data shows that New York County (i.e., Manhattan) is the least profitable county for owners in the entire United States.
http://therealdeal.com/blog/2014/04/01/least-profitable-county-for-rental-landlords-new-york-data-shows/
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![Michael G.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/160835/1621420282-avatar-brooklynrocks.jpg?twic=v1/output=image/crop=388x388@32x62/cover=128x128&v=2)
Jonathan -
Gonna have to disagree here - I think New York generally and Brooklyn specifically (especially the HOT areas like Prospect Lefferts Gardens, Flatbush, ParkSlope, ProspectHeights/CrownHeights, Gowanus and of course WillyBurg, Bushwick, B-Stuy, etc..) are incredible places to invest. It's just that one has to actually know what they're doing is all. I say F'k what TheRealDeal says... Prices are expensive if you try to buy a property off of MLS or from a Broker (Brokers are absolutely useless to anyone who really knows a local market.)
Buying off-market, buying at auctions, foreclosures, or buying fixer-uppers and renovating & flipping - especially now that we can borrow so easily thanks to crowborrowing sites like PatchofLand.com and others - is the best way to generate very respectable profits even in NY.
I won't even look at a NY (or Brooklyn) opportunity unless I can realistically expect a Net Cap rate of around 9 to 9.5% +
It's doable.