All Forum Posts by: Eric Hajdu

As long as you keep the materials modest, you could easily do it for under 50k.  Although Staten Island is technically a NYC borough, it is really considered the suburbs here, so fortunately you'll be able to get labor at much lower rates than Downtown Brooklyn or Manhattan.  I would consider heading over the bridge to grab your materials in NJ, you could save a few bucks that way, good luck.

@Tim Richter

I think in these situations you should have a professional come in to evaluate. If my tenants have trouble with Hvac, plumbing, mice, etc. I always hire someone who specializes in that field to come analyze the situation. This makes the tenant feel like they are being taken care off, and gives you peace of mind.

I agree with others that close to 4K is absurd, I live in NYC and still only paid $250 for someone to come and address a recurring mice issue. A good/honest pro will seal up all the entry points, leave traps, and put the responsibility back on the tenant to keep the place clean. Good luck!

Hey Cole, I can relate to your post and find myself in a very similar situation, married, living in Brooklyn, two kids, one of which is a teenager, and two NYC rental properties.  I also am on the cusp of doing a bigger deal, most likely a multi family in a Class A Brooklyn neighborhood, but I would suggest that you don't empty your brokerage account to fund more real estate.  I work in the Stock market and get this question frequently, I tell people to consider their net worth as a whole and find some balance between your equities and real estate.  Meaning if you have a $1.5 mil brokerage account, probably would make sense to not have more than $2 million in real estate equity.  Just my opinion, and the way I attempt to keep a balanced barbell on my overall financial strategy, good luck!

I know I'm in the minority here, but I would be inclined to invest in a large city at this point in the cycle.  I went into contract on my first Brooklyn condo August 2001, and closed shortly after September 11th, it has more than tripled in value since then, and always had solid well qualified tenants.  I closed on my second Brooklyn Condo during the height of the financial crisis and later sold it for more than twice what I had paid.

I say all that to imply that any downturn in historically desirable markets should be considered as a long term opportunity. I work in finance, and to me, chasing after high cash flow from properties receiving dozens of offers is like buying game stop or AMC, I would rather own the Apples and Googles of the real estate world. Good luck in your search.

I wouldn't ask her about it, just move to the next applicant, luckily you realized she wasn't being truthful before any paperwork was signed.

This is someone you are going to have to engage with regularly for at least a year, no matter how the conversation goes, there will be some level of ongoing animosity on both sides, not worth it, good luck!

Hey Jason,

I have a few rentals in Carroll Gardens and Park Slope that don't produce very good cash flow in relation to their current values.  I have been looking pretty actively at different deals in Bushwick, and the numbers can make sense there on a multi-fam.  I think what is tricky is estimating current cap rate potential on a vacant property, as almost every BK landlord I know, including myself has incurred reductions of 10-15% in asking rents from 2019/early 2020.  Best of luck in your search, feel free to message me.

Hey Allan, I lived in New York for over 25 years now, and I agree with the general premise that it's demise has been greatly exaggerated by news stories and those who don't live here.  Every cafe is pretty much packed, traffic is terrible again, and you can't get a seat on the train.

All that said, the rental market has certainly softened, I know this from experience of trying to rent out one of my units and chatting with my fellow NYC landlord buddies.  Most of our tenants are asking for reductions or renewing at 10-15% less their previous lease price.  The incredibly low interest rates have certainly helped keep the sales market healthy, especially the townhouse segment.  

As far as people going back to work, I absolutely notice a huge uptick in people being dressed up, which I assume means back in the office.  I believe the city is as crowded as ever, but there certainly has been a demographic shift, where you see less families and much more 20 and 30 somethings, although that could just be me showing my age.

If your working in NYC, I would consider renting in the city and investing for cashflow elsewhere.  There is a very strange phenomenon happening here currently where rents are dropping, but property values are stable.  I have a few units in class A Brooklyn neighborhoods, and I just had a tenant leave after 11 years.  I have been trying to rent it for a month and have gotten little to no interest, even after a significant remodel and price cut. So, I have decided to list it for sale for about 3.5x what I paid for it 20 years ago, and I will roll that money into a different opportunity, that will most likely produce 2x the rent roll.

I had traded up in NYC over the years, and finally bought the big condo with statue of Liberty views, outdoor spaces, deeded parking, etc., and honestly I now regret it.  I will I would have taken all that capital and rolled into an out of state cash flowing property, and rent here to basically live for free.

All that said, I was talking with my dad earlier today, and he bought his home in rural NJ around the same time I bought the rental condo I was describing above for about the same purchase price as me, and he thinks he would just about break even, while I more than tripled my money.  NYC will always give long term appreciation for wealth building, but the numbers are horrific as a traditional cash flow investment.  Best of luck on your journey, and just make sure you buy something!