State Specific Question About: NEW YORK (NY)

Help , As I am approaching retirement and interest rates at 0 I am hoping to become a LL. I did own 2- 4 units many years ago but sold for family reasons which do not apply to me now.

In my area suburban units are selling for about 50K / unit if you can find one. This equates to a 6 % to 7 % cap rate if paying cash. On the other hand if I enter the market to leverage I won't be around to see a 30 year payoff.

I have been a real estate investor since buying my first rental home age 18, owning 5 properties by the age of 20.

Also I became a California Licesnsed Contractor so that I could do the work on my properties, save money, pull permits and learn the various building trades.

While working for clients as their handyman, contractor, plumber, etc, I learned alot about the make up of landlords.

Most of my 100 top clients began to save money after the age of 40. Before hand they were too busy raising their families and dealing with life.

As my clients moved towards 50, they begain to crawl and buy a few properties. By the time they were retiring from their career, they had become seasoned real estate investors making large purchases in their early 60's. By the time they were in their mid 70's, they had paid off all of their real estate loans making a hudge monthly postive cash flow.

Because their real estate kept them active, at 80 plus, they still manage, drive and deal with management.

I am over 70, and weaker every day...we make more mistakes.

If you are looking to see your loan get paid off in 30 years, you are not paying cash..and you do not need another job or a banker to support...

Depends on how much money you have to play, I moved the bulk of my investment into Gold 7 years ago, and quit buying property in this country in 95. My other investments are worth far more than my properties.

Our G's are very aggressive in spending your savings, supporting their causes. Property Taxes and Income taxes will continue to rise, Our dollar is in decline, interest rates are at 0 for a reason..

You have lost the value of your saving and your homes, most of us are LL not by choice.,and bought many years ago.

My take... if you HAVE to do the work yourself to make the numbers work... your just giving yourself a job working for free. Now if the numbers make sense with you hiring out the work, and you WANT to work on it yourself to save money or just because you enjoy working on it. Good.

See I forget to put age in there, at 20 ever one called me Brad, I borrowed like crazy from the banks, even my mom...at 50 they were all paid back..last house was paid for in less than 6 months, mom was happy paid back again..

I even drove a red corvette, re financed many times over.

It helps to have age on your side...to smooth the mistakes you will make..from the long hours you will work, many without pay..

Ray,

You can review New York's LL laws and join a local LL group to find a good repairman, purchase deals, etc. Ask about owner-financing from this site and other resources.

Ray, you are never too old. Just do it! Buy one can see how it goes. Join a local Landlord Association and met some supportive people in your area. Keep us updated!

All good points above. A few more questions for you to answer (to yourself):

Why do you want to do this?

Health will decline over time - what is your action plan for when the time comes that you can't or do not want to do the maintenance yourself?

Do you have your exit strategy firmly in mind?

If you buy for all cash, are you left with ample reserves?

Have a great time!

Bill [TX]

Ray, My dad STARTED when he was downsized at 55. He built a muti million dollar little empire of monopoly houses.

My suggestion to my kids and anyone: Learn how to wholesale. Find some deals and find some guys like me who can pay cash today. I'll pay you a few thousand if you deliver a deal to me.

Mostly phone and internet work, plus driving around. No hammers, no tenants, no liabilities. Just cash.

Make a few thousand on each (that' more than you'd make in a year of landlording with mortgages) Build up some cash and along the way you'll find some keepers. The real profit is in PAID houses.

You are not too old to be a LL. Growing up my parents were LL's. They bought a big two story house with a private

entrance for the upstairs and rented it out to college girls to pay the mortage on the nice brick home we lived in. Both neighbors on each side of our home were in their early 70's retired and they rented out the upstairs of thier homes for income.

One of these next door neighbors had other

homes they had bought up the street they also rented and managed. The old man would even go push mow the little yards on the rentals.

When I feel like I am too old, I think of my neighbors and all they did as LL's to give me strength to continue on.

It was a trend back in those days actually several neighbors I can think of

rented out the top floor of thier homes to