Looking to buy a house in Manhattan and rent it out after a couple years. Is it possible to cover the mortgage payments with rent, assuming it stabilizes by then? I can’t seem to make the math work unless you’re putting down 20%+

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A house in Manhattan?

I’d say do more research. Other than Epstein’s old crib, might not be any actual “houses” — you’ll be seeing mostly co-ops and some “condops” and condos. You almost can’t buy anything without 20% down, very few exceptions. On top of the 20% down minimum, many buildings will want to see liquid assets equal to 12-24 months of future mortgage + monthly fees.

Fees vary widely and will make or break your potential for running positive cash flow. Personally, I think you’ll need more money down, longer timeline, and a building with relatively low fees. The break-even point gets pushed way out in Manhattan due to the high monthly fees.

likesmart

When you rent out consider 5-10% of rent vacancy and 5% for repair and maintenance.

If mortgage is barely covered by rent then you will lose money after those 2.

Sounds like a bad deal unless you are counting on substantial appreciation.
You might be better of buying out of state.

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In this market? Prices are on a downward slide. You might be underwater on your mortgage at this rate. And you might have trouble finding renters with historic vacancy rates.

Am I missing something here?

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P1, NYC has multiple boroughs and many neighborhoods within each. Whatever property OP buys will be subject to the trends of that submarket, not whether NYC as a whole is a desirable location.

I meant condos

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