Flushing, Queens market

[John Chan]

I know someone who brought a property in Flushing, Queens in 2000 for $360,000. The property is classified as a single family, however it has 5 different units inside, renting for $40,000 in 2000, currently renting for $53,000.

The value of the building is currently $850,000. The rent has not been rising proportionally with the value of the house. This has happened all over the Queens and Brooklyn area. What is accounting for the lower capitalization rates? In your opinion, would it be a good idea for the person to sell the building and buying another property with a higher capitalization rate in a different area?