Long Island, NY Real Estate and Homes For Sale

Great Long Island investments today have good cash flow. I saw this property this week and was very excited about it, for the buyer investors I have been working with. It is a bank owned (REO) in Hempstead NY (on Long Island).

It s is  4 family consisting of 3- 2 Bedroom Apartments and 1- 1 bedroom apartment. It needs considerable work. All 4 baths, all 4 kitchens, some windows, as well as the stairs from the 1st floor hallway to the second floor need fixing or replcing. Structurally the property seems ok although I would definately have an engineer make sure.

Back to the numbers though. If the apartments are rented to tenants through the section 8 program the rents for 2 bedroom apartments are approximately $1,400.00 US per month. 1 Bedroom apartments can recieve up to $1,100.00 US per month. That is a gross annual income of $62,400.00 US ($1,400.00 + $1,400.00 + $1,400.00 + $1,000.00 x 12 = $62,400.00 US Dollars). The taxes are stated as $11,254.57. If we assume the insurance is $1,200.00 , heat $3,000.00, and water $1,000.00, per year the annual expenses are approximately $16,454.57 making the net operating income (NOI) a little less than $46,000.00 US Dollars.

The asking price on the property is $229,900.00 USD. The property may need 50-60,000.00 in work (you could easily put in more if you wanted to, but look at the picture- it is not and never will be a luxury apartment). Lets figure on some surprises and figure the total cost is $300,000.00 USD and that is figuring purchasing at full asking price (remember it is bank owned and banks are sometimes negotiable).

The capitolization rate on this property is 15%

I have spoken with one investor who puts in electric heat for each apartment, making his income go up and reducing the maintanance on an old boiler with the bonus of reducing carbon emmissions (It’s a “Green” investment property—WOW making money and saving ther earth).

If you have any questions about this property or any other investment property feel free to contact me at 516*764-6200 or e/m Reillyerik@aol.com

Erik Reilly

“Living a life I love, through service to others”