Struggling to Grasp How NYC Real Estate Yields Profits

Inherited a $1M, fully paid rental in NYC with minimal net gains. Why does the cash flow seem so weak, even without a mortgage? Is real estate unprofitable at a small scale?

Considering my personal experience with NYC rentals, I have observed that returns can appear low because of the heavy localized expenses that often go unrecognized at first glance. High property taxes, costly maintenance, and strict regulations naturally reduce net income. Additionally, unexpected vacancies and market fluctuations further complicate cash flow. Even without mortgage payments, these operational costs are significant. Exploring value enhancement through strategic renovations or more efficient property management systems has proven beneficial in my experience, often gradually improving profitability over time.

I wonder if tweaking your management strategy might reveal hidden profit streams. Have you noticed patterns in those unexpected expenses? What do you think about exploring upgrades or alternative leasing options to boost returns?