Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 1 year ago on . Most recent reply

User Stats

722
Posts
1,260
Votes
Jonathan Twombly
  • Rental Property Investor
  • Brooklyn, NY
1,260
Votes |
722
Posts

Why we don't invest in New York, even though we're based here

Jonathan Twombly
  • Rental Property Investor
  • Brooklyn, NY
Posted

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/

  • Jonathan Twombly
  • Podcast Guest on Show #172
  • Most Popular Reply

    User Stats

    272
    Posts
    165
    Votes
    Michael G.
    • Rental Property Investor
    • Brooklyn, NY
    165
    Votes |
    272
    Posts
    Michael G.
    • Rental Property Investor
    • Brooklyn, NY
    Replied

    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. 

    Loading replies...