Condo-op / Coop / Condo for 1st time foreign buyer in Manhattan

[Dennis Y.]

Hi, I recently signed up to this site and find it very insightful. I am not a U.S. citizen but have live in NYC for a year and am some what familiar with the different boroughs. As a first time investor in property, I narrowed my choice to Manhattan for buy and hold. Essentially I like to leverage up and not get some cash flow or at least to cover the mortgage. I would like to get an opinion about investing in a condo-op (a coop that allows rental). It is actually a coop in midtown very close to the subway with a very easy going board, with mostly 1 bedroom and studio. The apartment is currently owned by my friend who's looking to offload it due to a commitment in another apartment purchased. There is a tenant already. My question is, is coop a good investment in New York for cash flow? Or better to pay up on a condo? some coop are restrictive and the policy can change anytime.   Buying from friend will also mean discount, as there's no agent fee involved.

[Kara Haney]

please consult a tax lawyer and or attorney - even if the coop has loose rules now it could change - additionally there are tax advantages to a condo - and your liability is different. in both cases you should check the financial status of the association to avoid being blindsided.  I guess NY RE looks inexpensive compared to Happy Valley, but there are also a lot of tenant protection laws so be advised. possibly a property manager could answer your questions or maybe even me once I get my license:)