Westchester NY cashflow rental

[Adam Tan]

Hello, I'm very new to RE investing and was hoping for some advice or places to start. I've recently come into about 800k and am thinking of outright buying a property in Westchester as a rental for consistent cashflow. I am not interested in leveraging/financing with a mortgage. Ideally, this will be a buy and forget deal where there is minimal input on my end. 

Does anyone has any thoughts about what potential pitfalls I should be aware of, yields I should be aiming for and/or any contacts in Westchester area (preferably lower Westchester like White Plains/Rye). 

Thank you!

[Scott Wolf]

@Adam Tan, while the idea of having a paid for rental is great, I'd search for somewhere outside of Westchester where your money goes further, you get more units, and have better economies of scale.

Not investment advice, but for example $800k will probably net you a 4 family at best.  If you went further north to Dutchess County, you could probably get an 6-10 unit for that price, with a better cap rate, or you could even go out of state.  If your goals are solely cash flow, I'd go somewhere outside of Westchester.

[John Bucci]

Hi Adam, @Adam Tan

If you're paying cash for a property, you can make the numbers work when it comes to cash flow. Much tougher/ tighter when you add in a mortgage payment around here, due to the high taxes. 

I own some rentals outside of Westchester which cash flow better on paper, but require more management and TLC. If you really want it to be as passive as can be, and view it as a good place to park some of your cash, then buying something in lower Westchester would make sense. More of a long term hold and appreciation play. With less tenant issues (hopefully).

Any questions let me know. I'm currently in contract to purchase a multi-family in lower Westchester as well. And sold a few multis to clients in Harrison and White Plains this year. 

[Alexander Szikla]

Why not use leverage? Interest rates are dirt cheap. 

Your cash flow will be significantly higher and you will have interest expense to offset taxes. 

[Shanna Vataj]

What an awesome position to be in. Unfortunately there is no buy and hold property that’s “buy and forget”. You will still need to manage it and put out fires (problems). It wouldn’t make sense to hire a property manager for such a small property. You’re profit would be gone.
 If you’re willing to take a very small mortgage, you can get a duplex in mid Westchester. If you are definitely against financing of any kind (even with rates being very low), you’ll want to look into northern Westchester - think Yorktown, somers for higher end with higher rents or Peekskill/Ossining (possibly a fixer) for a triplex or four unit with more turnover and lower rents. It’s important to look at taxes. Many of our municipalities have village, town, county and state tax (Pleasantville NY). 

I’ve built my business by educating and working with first time and novice investors. Check out my website for info and my blog to learn. ShannaVRealty.com 

	Shanna Vataj Kinard Realty Group Realtor, Management Team 845-750-3310 I 203-548-0568 ShannaVRealty.Com
Real Estate Consulting & Sales. Multifamily & Renovation Value Specialist.