I inherited an NYC rental property that is fully paid and shows low net income. How can rental investments be profitable when cash flow barely breaks even with leverage?
Having experienced similar conditions with property investments, I believe that several factors contribute to minimal cash flow in NYC properties. Even after full payment of the mortgage, the high operating expenses, including taxes, city fees, and maintenance costs, can significantly erode the rental profit. In my own experience, the low yield is often offset by long-term appreciation and the leverage of property improvements. It is essential to approach these investments with a conservative cash flow perspective and a longer time horizon for realizing gains.
i had a similar sitch - even with no mortgage, crazy taxes and upkeep chomp most returns. sometimes tweaking rents or cutting costs slowly helps. patience is key in nyc.