Buying following the 1% rule in NYC

[Laura Moreno]

Where can you find properties that follow the 1% rule in NYC? Queens, Manhattan, Bronx, Brooklyn? I am thinking about buying a multi-property in NY but it seems like that is difficult to find. 

Thanks so much in advance!!

Laura

P.S. the 1% rule states that your monthly rental must be at least 1% of the purchase price of the property. 

[Eric A.]

Laura Moreno if I were you I'd throw rules of thumb out the window in NYC. Judging by your profile it seems you want to house hack meaning you're going to live there. Depending on your family situation you might be able to have a more flexible definition of house hacking. Meaning maybe you can buy a 2br condo and rent out the other bedroom either long-term or on Airbnb. Or if you don't want to share your living space maybe you can find a 2 story townhouse in Flatbush where you live in one floor and rent out the other. Flatbush is generally safe and depending on the exact location you can be Walking distance to prospect Park and the 2/5 trains. The only metric I'd look at is what your net monthly payments will be compared to your current rent. Make sure you can handle the monthly payment and try to factor in a month or two of vacancy to make sure you can cover the whole mortgage with no rental income in between tenants. Don't forget as a house owner you'll have lots of costs like property taxes, water/sewer bill, heat, and homeowners insurance which you never had to pay before. These things can add up.
As long as you're comfortable carrying the payments you'll benefit from rental income appreciation as the neighborhood gentrifies as well as equity appreciation as the value of the house increases too.