Advice on Buying PLEASE!!!!!!!!

I'm not one of streeteasy's resident bears but I vote a strong NO to this. Its a tiny studio so will be very unlikely to appreciate in price. Start looking at starter 1 bedrooms and take your time. There is no rush.

You should be talking with an accountant not this board but I'll tell you if you are going to buy, you'll be better off with this tudor city/murray hill apt your looking at over a forrest hills one.

If you get a killer deal, then you will be fine. There must be a large discount.

Also, you can get a loan for this, just not a conforming loan.

Thanks for your comments.. So very appreciated. I'm wanting to make sure my "desperation" to buy isn't clouding my head so that I miss the truth. My instinct is telling me no as well. My family thinks I shouldn't tie myself into a Studio when I'll probably need bigger than that in a few short years anyway. I should keep my cash liquid until I can afford a larger purchase. Thanks again. (buying can be so frustrating -_-)

NY4me: You're 25. You need your parents to help. You're anxious about what/where.

Save some $. There is time for you to become an investor.

Listen to yourself: 380 sq ft. super cheap...

Save and buy a one bedroom condo in the best neighborhood in Manhattan that you can afford.

If you dont have all the money to buy it fully, dont buy it , not saying you sholdnt finance, but its too risky for a new investor. Put your money into t-bills or some high yielding stock like con ed.

under 300k , super cheap ,380 sq ft. ...

25 years old and wants to rush into being a RE investor.
Have a good time enjoying your 20's. Save money. How much can you save while still enjoying your 20's, figure it out.

Right now, NYC real estate is for living in--not for investing--for someone in your position. You need to build a diversified portfolio; it doesn't make any sense to dump all your eggs into a tiny studio in a coop with weird rules. You should start finding and working with an independent financial advisor whom you trust and respect to begin building wealth at your age. The fact that you are "itching" to do something and seem a bit "green" at all this gives me some concern. Investments are best made rationally, calmly, and as part of a plan consistent with one's short-term budget, and long-term investment strategies. If the deal currently "just" covers your expenses, what will you do next year when the maintenance fees increase 5%? Or if there is a $500/mo. special assessment next year? Or if the tenant moves and you cannot rent the place for as high a price? This so-called investment would actually start costing you money. From what you said in one brief post, you haven't convinced me at all that this purchase is right for you.

I am extremely pro-landlording (I've been a landlady for a decade now) but I'm not sure this is the right property to start with. It's super-cheap because no one will write a mortgage on it, and you don't have any idea how many years it will take that situation to reverse.

Also, if current rent is going to just cover current costs, be aware you will have to put in cash of between $2K and $5K a year. Vacancies, repairs, assessment, rising taxes, the need to paint -- it's always something. The appreciation of the property might well cover the funds you have to kick in (it historically has for me) but you have to be prepared to write those checks.

ali r.
DG Neary Realty

Buy sprint. When it moves up 20%. Buy the $2.5 june puts whil selling the jan $4 calls. This will allow you to limit the downside to 20% while at the same time earning more than 10% if sprint trades sideways for the next 4 months. I'll tell you what to do in June 2012. Off to Asia for some rr with the family. See you in the grand hyatt beijing.

And no matter whatever the fk you do. Don't take financial advice from an internet board.

w67th is off to exotic climes again.
How does his surgeon wife get all that time off away from her practice?

If you won't live there for 2 years, why not wait 2 years to buy?

Don't do it yet. This isn't purchasing a pair of shoes, it's a MAJOR commitment. Wait until you gain more knowledge before considering taking such a big financial step.

"Under 300K" for a 380 sq ft studio in midtown is not exactly "super cheap", by the way. And unless you are making a profit on the rental income (just breaking even doesn't make sense on an investment that may actually lose value in the short term) what's the point? Remember, you'll also have expenses not factored into the maintenance/mortgage monthly outlay (your tenant may need a new stove, the fridge might break, you may need to repaint, etc, etc).

Take a deep breath, step away, educate yourself about NYC real estate and then come back with a clear head once you feel ready to take the plunge.

I think we scared this kid straight.

"I'm ITCHING to make some sort of investment."

Itching is usually the first sign of something unpleasant.

@Sunday: THAT'S funny. And true. Although I'd be more worried I guess if he'd said he has a "burning desire." Burning is much worse than itching.

You know this how?

I personally don't find blanket statements useful. You are asking for advice and people are giving it without knowing the facts. What is:

- price
- current rent
- maintenance
- downpayment

Then there are your expectations:

- hold period & liquidity needs
- true rent (not the one the owner has jacked up w/ under-the-table payments)
- expected rent increases
- expected maintenance increases
- expected other costs (transaction, vacancies, repair)
- expected gain / loss on price at sale

Hi everyone, thanks so much for the advice. I'm really appreciative. I assure you i'm only "itching" figuratively LOL.. I guess i'll pass on this one and continue to save. I've been at my first "real" job now for a year and a half, making about 52k (gross) and have managed to save $15k. So, i'm just gonna keep going and buy one day when i'm able to afford a 1br or 2br.

@Bramstar, thank you. It was funny when you said I should educate myself more on NYC Real Estate, because that's exactly what i'm doing. I'm taking the Licensing Course. Not necessarily to sell, but just to gain more knowledge in this field.

Once again everyone, Thank you :)

I'm concerned here because you feel an urgency to invest yet seem ignorant about NYC real estate AND it won't even be your own money. As others have said, take a deep breath & calm down. You need to save, save, save & learn, learn, learn & at least risk your own money. Save at least 10% of every dollar you receive until you have 6-12 months of living expenses liquid & then start investing your savings. That will give you time to calm down & educate yourself about investing. Best of luck to you.

NewYork4me, you are wise to stand back and take the time to learn more about real estate and especially the weird and wonderful -- ok, just plain weird -- world of NY City real estate. I have been looking for a place to live in for over 2 years now, and I have made approximately 3,000 mistakes out of naivete and anxiety. I have never heard of, nor do I understand the ramifications of, the conditions this building requires in order to purchase. You are young; find a good financial advisor (and watch out for their fees; some can be ridiculously expensive), spend some time accumulating $$ and do some smart investing. Good luck!

If you would not want to live there long term, then do not buy it. You would be putting all your eggs in one basket and not making any income off it. And a 300 sq ft studio in midtown is not a long term type of residence, I would be worried about having to find a new renter every year.

You have to think worst case scenario which would be that you can't find a renter to cover your payments and you also can't find a cash buyer. That would mean you would have to live there and personally I don't know how long I could stay in that neighborhood in such a small space.

"I've been at my first "real" job now for a year and a half, making about 52k (gross) and have managed to save $15k."

You are not in the position to buy anything in the $300K range.

You're barely in the position to buy something in the $150K range.

NYC, of course I understand that.. My savings are for my own purposes, not to buy now. My parents had a "chunk of change" for me to specifically use for an investment property. That's what I would have used here. But, I'm feeling apprehensive about using their hard-earned money, so I was simply asking for advice on whether I should gamble with their cash, or wait until I'm in a position myself.

"Ok, so here's the story. I'm 25 years old, and I'm ITCHING to make some sort of investment...I'm gambling with my parents hard-earned money for the down-payment, and I would simply die if I screwed it up."

What makes you think that real estate is an "investment" per se??? It's really not, unless you rent it out for a long period of time [and do you really want to be a landlord?]. If I were you I would consider alternatives - i.e., stocks and bonds - and they won't call you up at 3am asking you to fix a leaky toilet either.

FWIW, NYC rent laws are VERY pro-tentant, anti-landlord - if you get a bad tenant, your life will be hell IMO.

"I've been at my first "real" job now for a year and a half, making about 52k (gross) and have managed to save $15k"

Congrats on managing to live in NY and still save some dough. Whatever you do, LOOK CAREFULLY about 5-10X at whatever you invest in before leaping. Good luck.

Thank you BSexposer, your posts made me laugh! Very good advice from everyone.. Thank you all a million times!

You're welcome, young NY4me.
Now save up and keep us posted. Make us proud.

Consider buying shares of a REIT index if you want to invest in real estate. In the meantime, save, save, save.