After 75 days of looking, I have modelled several New York condos around $510,000 and keep arriving at negative cash flow once I include vacancy, management, maintenance reserves, insurance, property tax and financing at 4.14%. Tenant turnover makes the marginal cases look even worse.
Are buyers accepting weak current returns, contributing more equity to reduce finance costs, or simply waiting for better numbers? I would like to compare genuine operating assumptions rather than headline gross yields.
If you chose to buy at roughly $510,000 despite similar figures, what vacancy allowance, management cost and maintenance reserve did you use, and what ultimately tipped the decision?
Are buyers accepting weak current returns, contributing more equity to reduce finance costs, or simply waiting for better numbers? I would like to compare genuine operating assumptions rather than headline gross yields.
If you chose to buy at roughly $510,000 despite similar figures, what vacancy allowance, management cost and maintenance reserve did you use, and what ultimately tipped the decision?