I need information and experiences with co-op investing in NYC. Specifically in Parkchester Ny. But any info would help. Also, How do you convert Multi family into condos?
You can rent coops without approval from a coop board. You should not have any problems with condos though.
Parkchester condos are currently very overpriced. You would be betting on appreciation because there is no way you can get positive cash flow on a one bed apt selling for 90k with $500 maintenance fee. 1 bedroom apts rent in the area for under $900 month.
Think about what you would be getting into:
Rent Revenue 900
Condo Fee 500 (usually include all utilities)
Maintenance 100 (at least $1200 a year for repairs)
Mortgage 553 =431+122 (80% financed at 6% and 20% at 7.25%)
Net Income/LOSS = 900-1303 = -403 per month
You are going to loose 5000 a year.
Do you think the place will appreciate more than 5K a year? I would not make this investment.
How about, if they need work, can they be re sold for a profit? Also, Where in NYC, would it be best to look into condos in? Thanks for your response.