Buying a NYC Apartment
Hey everyone,
I am about to enter my second year of IB at a BB, signed an offer at a MF for afterwards. I am considering buying a 2-3 bedroom apartment and rent the other rooms to friends. Or if I find something I really like maybe even get a one bedroom. Figured if I have some rooms to rent it’ll cover a lot of the mortgage cost.
Is this a good idea? I guess I’m not sure if I’ll be in NYC after my two years of PE (grad school, lateral, switch industries, etc) but would it be reasonable to assume I can just rent it out in that case?
I think I could be able to put 10-20% down depending on the price (let’s assume I can put down $100k-$150k but the higher end being a bit of a stretch) by going in on it with my parents.
Looking to get any advice and thoughts, thank you in advance!
Can’t really comment on if it is a good idea, will depend on market conditions, all the financials (upkeep, price you pay, etc), rules of the building, how much you will outsource vs do yourself (if renting, etc).
I will say 20% is about the minimum for a down payment outside of a few cases (mostly only condos and need to find a bank willing to lend with 10% down).
Make sure you factor in all the closing costs (~40-50k) as well as any reserve requirements from the building. So you are looking at 750k which will be tough to find in nyc. I would say minimum 5 years to break even with closing costs, HOA, and then selling fees (broker fee).
As for renting you will usually spend ~10k a year on upkeep, vacant (if renters moving out), etc.
Anyway, if you can find a place big enough in an area you want to live, and you can afford it with little stress and you are up for being a landlord it can make sense. But don’t discount that last piece, being a landlord can be a pain.
Oh you got an MF offer, and now youthink you can just buy an apartment not rent? I recommend stil renting because it's just way more of a hassle to actually maintain your bought apt and people you're renting to than if it's rented...you'll be working hard at the MF. You reatly think you have time to manage it if your tenant ditches you and yo have to find somenoe else?
Do you hate yourself life or something? everything I see from you is negative unless it’s about FTP
Oh trust me, I talk shit about them too if they deserve it. Yeah, kind of in a rut because of pandemic
What to do? I'm trying to help by making jokes.
Math won’t work. 2-3 bedroom condo (without renting restriction) where people want to live are like $2.5mm+. With taxes, fees and mortgage you are looking at $12-15K/month. NYC isn’t Tampa or something to play rent arbitrage.
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