Announcement

**aslan** · 05-09-2018, 01:49 PM

Hi Mina, I have a lot to tell you about this as this covers quite a bit. Please see below for my answers in italics. Are you looking to buy a new investment property with the proceeds? Do you need to sell first in order to buy? Please feel free to message me to chat more about this.

Q1: Could you tell me your onions about condo-op and condominium?

This is a great article to read which explains in detail the difference between condos vs co ops: https://www.hauseit.com/co-op-vs-condo-nyc/
This is a great article on whether coops make good investments: https://www.hauseit.com/is-buying-a-...stment-in-nyc/
Short answer, I would highly recommend that you stick with condos if you’re looking to buy an investment property!

Q2: Does any condos (or condo-ops) let owners rent their units monthly in Manhattan? or do you know any places the owners are able to rent their units by daily or monthly in Midtown area?

I’m fairly certain New York has some laws against short term rentals less than a month. I believe these laws came about through the lobbying efforts of the local hotel industry and are targeted at AirBnB. I remember my building referencing this prohibition against rentals shorter than one month.

Most coops will discourage short term sublets and any subletting under 1 year. Condos are more flexible, and I think many will allow rentals shorter than a year; however, even condos won’t allow rentals under 30 days which would be illegal.

Q3: 111 56th (Lombardy Hotel). It seems owners can rent their units daily in this building. However almost all Lombardy hotel units on the market right now sit on the market for so long. Probably prices are too high or it is too hard to sell because it is co-op hotel? I would like to have general opinions about Lombardy hotel or any co-op hotels.

Q4: What is the difference between Hotel-condo (like Trump tower at SOHO) and Hotel-condominium (like SETAI at midtown). I think Trump SOHO's owner can not use their units more than 180 days per calender a year and Setai owner can use their units all 365 days. Because of zoning? or are these totally different type of buildings?

Q5: Pros and Cons of Land lease buildings.

Please read this great article on what happens when a land lease expires: https://www.hauseit.com/what-happens...e-expires-nyc/
The short answer is it depends on who is the owner of the land. If you’re in Battery Park City and a benign government agency owns the land, then you’re probably fine. However, if you’re a rare coop that has a land lease expiring in under 30 years to a private landlord, then you’ll be buying a depreciating asset. No banks will lend in that situation, and it’s a gamble as to what will happen when that land lease expires.

Q6: Could you please tell me about SRO building? If SRO building with C-O and vacant, can owner change this SRO building into a regular (no SRO) building?

There is a good amount of information about SRO buildings in NYC online. I would caution against investing in this space, especially if the building does not have a Certificate of Non Harassment in place. If there isn't a certificate in place, you won't be able to apply to the Department of Buildings to get your Certificate of Occupancy changed after you complete renovations. The difficulty comes when there is no Certificate of Non Harassment in place and an tenant won't sign an affidavit saying they weren't harassed, or you cannot locate the last tenants of record. The NYC Department of Housing Preservation and Development (HPD) checks back three years for any outstanding or previous harassment complaints. You need to demonstrate to the best of your abilities that the SRO tenants vacated voluntarily if you don't have a Certificate of Non Harassment. Different ways of doing this including mailing a letter to the last known address of the SRO tenant, putting an ad in a local newspaper or presenting utility bills confirming minimal usage within the last 3 years.

Q7: Are corporate buyers allowed to buy the most of the condominiums' units in Manhattan?

Yes. It’s very common for investors or those concerned about privacy to purchase property in a LLC. Please read this article on buying property through a LLC in NYC: https://www.hauseit.com/buying-prope...through-a-llc/

Q8: What is owner financing available properties and how does it work?

Very rare, but sometimes a property is quite hairy and difficult for banks to finance. Perhaps it has outstanding violations. As a result, a seller make offer owner financing if banks won’t lend. It’s still a mortgage, but the underwriting process can be whatever the owner wants, so it’s sure to be less onerous.

**JasonGraham** · 06-21-2023, 02:37 PM

It's been a very long time but congratulations on your decision to buy a house and build a shop!

**bondlillian** · 06-23-2023, 08:43 AM

It's an exciting venture. If you have any specific questions or concerns, feel free to ask. Remember, it's always a good idea to seek advice from experienced professionals. Search for Local Surveyors Near Me. They can provide valuable insights and guidance throughout your investment journey. Wishing you the best of luck in your new venture!

Announcement

First time NYC property investor questions

First time NYC property investor questions

Comment

Comment

Comment