Introduction / Want advice on investing in nyc condos

[Joseph Holmes]

I recently got pre- approved for a mortgage and will be moving in with my girlfriend who has a cheap rent stabilized apartment, which will allow me to safe a lot of money.

I want to invest in a condo as a rental property in nyc, i realize i probably will not get as much cashflow or find a 20% discount price that is recommenced in the bigger pocket book because the nyc market is tuff to make some of the advise in the bigger pocket book work.

But i realized i can kind of force the cashflow numbers to work if i put a larger then 20% down payment on the mortgage,which i am capable of doing

If i go with this option i will only be able to afford a studio condo 300-350k price range that will dated and need some reno work that i would be capable of doing myself. (I have been doing construction and building maintenance for that last 12 years)

My other option is i could take that money for a larger down payment and get a 400-550k condo but the cashflow would probably be very little to negative. Additionally i would have to put myself on a stricter budget and not be able to save as much money because i still have to pay rent at my girlfriends apt and i would be carrying the higher priced mortgage, Hoa fees, insurance and taxes.

Im leaning to the cheaper option because i don't want to spread my income too thin, i dont want to live on a super tight budget, it feels a bit safer being that im new to rental property's. Additionally i will be able to save more money to pay down the mortgage or make other investments.

If i do buy the studio i plan to hold onto it around 5 years then sell it to buy a fixer upper 1 or 2 bedroom condo, move in, fix it up, hold onto it a few years then sell it and continue to repeat this process of trading up condos.

Does this sound like a reasonable plan? If not why? Are their any better options for me or ways to improve upon this plan?