Attn Manhattan NYC landlords- your success

[Amit M.]

Hi All,

I'm a property owner and landlord in San Francisco, and have often wondered how similar the Manhattan market is to ours.  I was fortunate enough to make my first investment in SF 20 years ago, and wisely refi/pull cash out and invest in more properties. Now prices are sky high, but if I can access my equity, I can still find interesting small buildings to buy. Most of my projects entailed buying properties that needed renovation, could be expanded, buying out tenants to place higher paying ones, etc., etc. I also move quickly into up and coming neighborhoods and make investments there...before it's too late. 

Does any of that sound familiar to how seasoned NYC investors operate?

I'm really curious if the path to successful investing in Manhattan (or Brooklyn now) involves similar strategies, as I'm assuming buying a turn key building in a solid neighborhood is very expensive to cash flow. But even with a forced appreciation strategy, I'm assuming you need to have made money already to invest in Manhattan?  That's what's happening in SF. Lots of newbies ask how they can get in, and I tell them that unless they have significant cash to start out with (and risk, if they make mistakes!) it's very hard to organically grow in SF now because the entry price is so high. The good news is that there are still areas nearby, namely Oakland across the Bay, where you can get in and start building an asset base a at a much lower price point. I'm assuming the same for NYC by investing in other boroughs?  And of course, if you took that approach 10 years ago in Williamsburg, you would be making bank today. So recognizing gentrification trends and overflow to other areas is key as well I assume?

I'd love to hear specific comments from NYC investors on the ground. I guess I always had the fantasy of eventually packing up SF, moving to Manhattan or Brooklyn, and perhaps investing out there :)  Or at least part time, spending fall and spring in NYC and the rest of the time in SF and traveling. 

[Les Jean-Pierre]

Well, I am a Brooklyn landlord and want to emulate your strategy. My dad bought a three family in Bed-Stuy in the 70's. I took over management a couple of years ago. But, even as Brooklyn is "hot" and prices are insane, I see 2-4 families that can be had if you have cash and act quickly. I am also fortunate to have bought at a good(not great though) time in Harlem so I have equity in my condo. So, actually going through refinancing right now and trying to get out there. I have good tenants in BK but the market has heated up so much that in two years, a place that was not that attractive to renters, is now in demand. I do need to upgrade the property but right now I can get decent tenants as is.