Actually today it’s in the high $600k and rents for about $3000/month. That means that your monthly expenses would be higher than your income/rent. So you’d be bleeding cash every month, not making money. Sorry, I do my videos off the top of my head and sometimes have no clue what I’m going to talk about and how far I’m going to go into the topic. Any specific numbers I mention may be off the mark, but the concept is sound. The point I’m tryin to make is valid. My numbers may be a bit off. It’s up to you to verify your specific numbers if you’re serious about looking at these properties.
Bought two properties just before the pandemic. One in what's considered a bad neighborhood and one in what's considered a good neighborhood. Numbers were good on both. The one in the good neighborhood did not perform and I had to sell loosing a lot of money. The one in the bad neighborhood continues to do well.
@@Myraisins1 same as what we figured? Ones in good neighborhoods are too expensive to cash flow. Ones in bad neighborhoods cash flow. And there’s always the chance that somebody in either place will stiff you. Most people, tenants especially, think that all landlords make tons of money. Couldn’t be further from the truth.
@@chriskok Sorry I’ve never done that before and I don’t think I ever would unless it’s some crazy valuation and somebody wanted to GIVE me money for the DP. Or loaned me the money and be a silent partner. But again that would have to be some crazy valuation. Like if I was gonna get a $1M house for $500K. Sure, give me $125k and I’ll do the work lol.
Brilliant video! Looking at the numbers i think i missed the boat and its not worth it anymore. Add in all the laws that favor renters, theres a real high chance of losing my shirt. I will stick with index funds.
@@zazenzach5754 yes, it’s crazy expensive right now. But even in the best of times, one needs to really crunch numbers and be knowledgeable about where to buy. In any case, as you said, there’s always the SnP. So much easier to:)
Another sitcom length rant today.😁 Thanks for sharing your stories and wisdom. 👍 Hope you managed to keep those sneakers away from doggy doodoo 💩😂 Is the 6% (or any amount) cash flow guaranteed with tenants? 🤔 Many landlords (with realty specialization) facing tenant challenges and rent payments where I live. They often resort to the courts which may take upwards of a year to evict freeloaders and rarely ever recover the unpaid rent and other associated costs amounting to thousands. The laws do not favour the landlords where I am. I learned a neighbour is subletting rooms including basement with living expenses eg, mortgage, property tax, utilities literally paid by the renters, and they could closely monitor their activities too. The downside is loss of privacy. I value privacy and cannot tolerate sharing the same roof and kitchen/bath with tenants, even to earn some side income.
@@hz240 haha. Longest one yet lmao. I had no idea it was gonna go on that long. And no, it was not worth it. As you hinted at. All it would take is one bad tenant to ruin all of it. Even at the current valuation and cash flow . $650K and $3000 rent (nearly $2000/month cash flow)!! This is most people’s dream come true. But I’ll follow it up with an even better alternative :)
@@RetireearlyNYC another neighbour sold his rental property during the peak at almost 4x what they purchased. The previous renter was a young family who was behind 3+ months rent and vanished out of province. They left behind 75k in property damage +5k unpaid rent so that easily offset/exceeded any cash flow. The real ROI was earned upon selling his property and as you said the timing was pure luck.🍀
Nice work here, good to see a down to earth guy with common sense giving out solid street wisdom.(Not the Norm here on YT!) Unfortunately bottom line is he needs to grab his wife and loved ones out of the mosh pit of blue state democrat one party rule. It will only further deteriorate.Quality of life, property rights,taxes,crime....the hits will keep coming. I did just that 5 years ago. Pulled my fam out of NY after mulit generations or residency and business ownership in the Bronx. Soo many great places still left in the US to live, invest, and thrive. Dont Limit Yourself!!!!
@@dennischen8887 holy moly!! Those are great numbers!!! Please do not give a location. Keep it to yourself. I’d buy 10 more of those lol. However, please do give us some general info about the place. I’m sure it’s nowhere near NYC or any major city? Why is the property so cheap? I’ve looked at upstate college towns, which are pretty decent for cash flow. But your numbers are ridiculous lol. Please Tell us something we don’t know, without revealing your secrets :)
@@RetireearlyNYC countryside and multi-plex. But very safe town. Small town so rooms get rented out within 1-2 weeks. 1 year lease. Taxes are cheap because property is cheap. I got a good deal though, building down the street similar to mine but half the size sold for twice the price recently. And mine was off market sale.
@@dennischen8887 Don’t know what happened to my other comment. But congrats! I was trying to say don’t tell us where it is. Keep it to yourself ;) Just give us some details like what you gave anyway. Anyway great buy! I’d buy 10 more if you can lol. But as you said it was an off market deal and similar ones are twice as much. Great deal, great price, and a multi no less. Good for you. That’s the kind of deals that people wish they had.
@@melodyn6419 very hard to find. This is just in response to a viewer asking about how to find rentals in nyc. Which is why I always try to discourage people from doing REI lol.
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Sorry not $500 into $80,000. It should be $5000 cash flow per year into $80,000 = 6% ROI per year.
Actually today it’s in the high $600k and rents for about $3000/month. That means that your monthly expenses would be higher than your income/rent. So you’d be bleeding cash every month, not making money.
Sorry, I do my videos off the top of my head and sometimes have no clue what I’m going to talk about and how far I’m going to go into the topic. Any specific numbers I mention may be off the mark, but the concept is sound. The point I’m tryin to make is valid. My numbers may be a bit off. It’s up to you to verify your specific numbers if you’re serious about looking at these properties.
Bought two properties just before the pandemic. One in what's considered a bad neighborhood and one in what's considered a good neighborhood. Numbers were good on both. The one in the good neighborhood did not perform and I had to sell loosing a lot of money. The one in the bad neighborhood continues to do well.
@@Myraisins1 same as what we figured? Ones in good neighborhoods are too expensive to cash flow. Ones in bad neighborhoods cash flow.
And there’s always the chance that somebody in either place will stiff you. Most people, tenants especially, think that all landlords make tons of money. Couldn’t be further from the truth.
Great video! Could you please make an episode about how to finance the down payment without using your own money?
@@chriskok
Sorry I’ve never done that before and I don’t think I ever would unless it’s some crazy valuation and somebody wanted to GIVE me money for the DP. Or loaned me the money and be a silent partner. But again that would have to be some crazy valuation. Like if I was gonna get a $1M house for $500K. Sure, give me $125k and I’ll do the work lol.
Brilliant video! Looking at the numbers i think i missed the boat and its not worth it anymore. Add in all the laws that favor renters, theres a real high chance of losing my shirt. I will stick with index funds.
@@zazenzach5754 yes, it’s crazy expensive right now. But even in the best of times, one needs to really crunch numbers and be knowledgeable about where to buy.
In any case, as you said, there’s always the SnP. So much easier to:)
Thank you for sharing, sir! Very helpful
@@aidar7382 YW! Glad you found it helpful :)
Another sitcom length rant today.😁 Thanks for sharing your stories and wisdom. 👍 Hope you managed to keep those sneakers away from doggy doodoo 💩😂
Is the 6% (or any amount) cash flow guaranteed with tenants? 🤔 Many landlords (with realty specialization) facing tenant challenges and rent payments where I live. They often resort to the courts which may take upwards of a year to evict freeloaders and rarely ever recover the unpaid rent and other associated costs amounting to thousands. The laws do not favour the landlords where I am.
I learned a neighbour is subletting rooms including basement with living expenses eg, mortgage, property tax, utilities literally paid by the renters, and they could closely monitor their activities too. The downside is loss of privacy.
I value privacy and cannot tolerate sharing the same roof and kitchen/bath with tenants, even to earn some side income.
@@hz240 haha. Longest one yet lmao. I had no idea it was gonna go on that long.
And no, it was not worth it. As you hinted at. All it would take is one bad tenant to ruin all of it.
Even at the current valuation and cash flow . $650K and $3000 rent (nearly $2000/month cash flow)!! This is most people’s dream come true. But I’ll follow it up with an even better alternative :)
@@RetireearlyNYC another neighbour sold his rental property during the peak at almost 4x what they purchased. The previous renter was a young family who was behind 3+ months rent and vanished out of province. They left behind 75k in property damage +5k unpaid rent so that easily offset/exceeded any cash flow. The real ROI was earned upon selling his property and as you said the timing was pure luck.🍀
Nice work here, good to see a down to earth guy with common sense giving out solid street wisdom.(Not the Norm here on YT!) Unfortunately bottom line is he needs to grab his wife and loved ones out of the mosh pit of blue state democrat one party rule. It will only further deteriorate.Quality of life, property rights,taxes,crime....the hits will keep coming. I did just that 5 years ago. Pulled my fam out of NY after mulit generations or residency and business ownership in the Bronx. Soo many great places still left in the US to live, invest, and thrive. Dont Limit Yourself!!!!
@@user-st7sz6xg2c thanks for dropping by :)
Thanks for sharing your insights. 10:44 The gap between the trees looks like a girl's face. 😮
@@manflynil9751 thanks for dropping by :)
I just bought a rental property for less than 50k with 2000 monthly rent.
@@dennischen8887 holy moly!! Those are great numbers!!!
Please do not give a location. Keep it to yourself. I’d buy 10 more of those lol.
However, please do give us some general info about the place. I’m sure it’s nowhere near NYC or any major city? Why is the property so cheap?
I’ve looked at upstate college towns, which are pretty decent for cash flow. But your numbers are ridiculous lol. Please Tell us something we don’t know, without revealing your secrets :)
@@dennischen8887 is there a catch? Is the area really run down? Does it have massive real estate taxes? Is it bc you’re doing air bnb? Tell us!! 😃
@@RetireearlyNYC countryside and multi-plex. But very safe town. Small town so rooms get rented out within 1-2 weeks. 1 year lease. Taxes are cheap because property is cheap. I got a good deal though, building down the street similar to mine but half the size sold for twice the price recently. And mine was off market sale.
@@dennischen8887
Don’t know what happened to my other comment. But congrats! I was trying to say don’t tell us where it is. Keep it to yourself ;)
Just give us some details like what you gave anyway.
Anyway great buy! I’d buy 10 more if you can lol. But as you said it was an off market deal and similar ones are twice as much.
Great deal, great price, and a multi no less. Good for you. That’s the kind of deals that people wish they had.
@@RetireearlyNYC that’s the plan to have a portfolio of these!
You can still find cash flow rental properties in new york?
@@melodyn6419 very hard to find. This is just in response to a viewer asking about how to find rentals in nyc. Which is why I always try to discourage people from doing REI lol.