Inherited a fully paid NYC property yields ~1% net return. Mortgage financing further erodes profitability. Is real estate, including management fees and vacancies, a viable long-term investment strategy?
hey, i think the property is more about steady growth than quick profits. risk factors like vacancies and mngmnt fees exist but in a city like nyc, value tends to hold upp over time. definitely, it’s not a golden goose, but can be a solid asset if managed well.
My experience shows that the modest net yield of around 1% can be misleading when taking into account the city’s robust market dynamics. While expenses and occasional vacancies reduce immediate profitability, the long-term appreciation potential and location advantages often compensate for these drawbacks. Investing in a property in a high-demand area like NYC generally ensures that, despite short-term cash flow challenges, the asset ultimately retains its value. Consistent property management and strategic oversight have proven crucial in mitigating risks and maximizing the upward trend in property value over time.