Investing in Stabilized housing in NYC - Any Tips Welcome

[Jason Lam]

Hi BP,

I am a RE investor in NYC area focus in multifamily (<4 families) rental. I've decided that the Free Market multifamily rental housing (<4 families) market is just way too hot for me at the moment, but I would like to still take advantage of the low interest rate and inflation rate (don't know how much longer...). Then lately, I found myself seeing a better returns and higher CAP rate in stabilized rental building (low raise 6-8 units) compares to other FM multifamily rental building in the area. Which peeked my interested in the stabilized housing sector for my next investment. I understand that with the passing of the latest Housing Stability and Tenant Protection Act in 2019 in NY, it really eliminated the up-side of stabilize building. Nevertheless, is it still a good investment if it trading at a high cap rate and with descent cash flow? Are there members out there who has experiences in Stabilized Housing and willing to share some tips with me on how to manage and what to expected as owner? Or even talk me out of the Stabilized housing.

Jason