Buying rental property in New York state and in the 5 boroughs

[Ryan Boyce]

Would like some insight from someone who is actively investing in NYC, Ryan B from the Bronx

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@Ryan Boyce New York is a tough market but I love it. The high barriers to entry keep a lot of people away—which is good for those willing to do the work to get in. The Ny market is very expensive, but we also command higher rent. To answer your question as to what it will take to get into the market: 1) learn the market. Start poking around on real estate apps. Track PPSF in a spreadsheet. Go to listings. View properties. Track everything you look at. Start getting a feel for the market. 2) know the rents. This is extremely Difficult in New York because rent can change from block to block. You really need to identify an area you want to invest in and learn that market. I like Morris Park for example. 3) start talking with banks to line up financing. Get ore approval letters. Be respectful. Be professional. Write out your plan. You want to impress lenders. You want to know that you have a lender who can move fast when you find the right property because speed is everything in this market. 4) create a spreadsheet that allows you to evaluate a deal. Know your expenses and rental rates. Always value a property based on the current rent. Don’t ever listen to anyone tel you you will be able to increase rent. Getting tenants out is not easy, especially in New York. So know your overhead. Know the rent. Run the numbers. Be very conservative. Be able to evaluate deals quickly. 5) network with brokers. Get to know brokers. Be careful, NY brokers are scumbags. Try to find good ones that you can trust. Build relationships. They will help you source deals. It will take you a while to find the right property. Every purchase I’ve ever made in New York has takes me at least 8 months of aggressive looking to find. It’s hard to find a fair deal in New York but they exist. 6) house hack if you can. Great way to get started. 7) know what you want. For example, I like 3 family and up, in good condition, separate electric and gas meters., no oils, cannot be near any rehab centers, shelters, or low income housing (very difficult to find in New York), in a good neighborhood, near public transportation, detached home, with parking... I know exactly what I like. Try to find out what you like. Ps, parking is very valuable, easy $$$ and easy to rent. 8) be patient. Take your time. Don’t over pay. Don’t get emotional. You will find the right deal. Just be patient and aggressive in your search.

The above also addresses how to get started. First you have to find a place. That will be a long journey. Start by going to showings and tracking what you see. Learn the market. Over time you will start to understand the market and what you like and don’t like. In a year you’ll buy a nice multi.

As for the process: it’s like any other part of the country. Get pre approved. When you get ore approved ask what other docs they will require if and when you actually close on a home. Start getting those documents together. Be very organized. I save everything on google drove so I have easy access when I need it. Network with brokers. Find a lawyer you like (mine only charges me 1500 for a closing). Get on the apps. Start going to listings. Start putting offers in. If an offer is accepted, call your lawyer. He will take it from there. The process is easy. Finding a place is hard. Never buy a place if the numbers don’t work. Don’t bank on appreciation. Don’t over estimate rents. Know the market.