Although the New York City real estate market houses many luxurious and expensive properties, buying an investment property within a budget can be achieved.
Conducting a diligent research on the various neighborhoods in New York City while consulting with experts whether agents, other real estate investors, mortgage lenders, or even real estate investment tools will help you find many affordable investment properties within this metropolitan city.
To make the process less daunting for you, we have developed a list of 5 of the more affordable neighborhoods in New York City that you can invest in today.
#1 Cambria Heights
Cambria Heights makes for one of the most affordable neighborhoods in New York City. It is located in the southeastern part of the New York borough of Queens and houses about 27,000 residents. This location is quieter than the typical NYC neighborhood, with its wide streets lined with mostly single-family homes.
This neighborhood makes an ideal investment opportunity for investors as it attracts a lot of young families looking for quieter and less crowded neighborhoods of the city. Public schools in Cambria Heights are above average in quality and crime rates are also recorded to be low. All of these factors raise the demand for property here.
Overall, Cambria Heights offers cheap real estate and makes for one of the most affordable neighborhoods in New York City. If you are an investor and looking for single-family homes within New York City, then it is worth taking a tour of this town and its investment potential provided by data from Mashvisor’s investment property calculator.
- Median Property Price: $485,259
- Price-to-Rent Ratio: 15%
- Traditional Rental Income: $2,708
- Traditional Cash on Cash Return: 3%
- Traditional Cap Rate: 3%
#2 Clifton
Clifton is located on the North Shore of Staten Island in New York City with a population of as little as 10,000. Despite its low population density, Clifton is a very diverse neighborhood in the NYC area. In fact, just this year, Clifton ranked 21st for Most Diverse Neighborhoods in New York City Area.
Clifton is a great location for a New York City investment property for real estate investors. That’s because this neighborhood attracts a lot of tenants who are in search of quiet and homey locations away from traffic congestion. The nightlife in Clifton is excellent, while public schooling is very good. Beware though, Clifton’s crime rates are not low but remain below the national average.
- Median Property Price: $415,865
- Price-to-Rent Ratio: 17%
- Traditional Rental Income: $2,098
- Traditional Cash on Cash Return: 2%
- Traditional Cap Rate: 2%
#3 Park Hill
Park Hill is located along the Grymes foothills, just south of Stapleton with a population of 14,000. Park Hill houses beautiful architecture and vintage homes while containing NYC’s semblance of mountain views. Even so, Park Hill makes it onto our list for the most affordable neighborhoods in New York City.
Buying a rental property in Park Hill makes a good investment strategy. This is particularly true given the fact that more residents live in rental properties as opposed to owning a home. About 54% of the population rents their homes, as opposed to 46% that own them. As a real estate investor looking to rent out long term rentals, we encourage you to further look into Park Hill.
- Median Property Price: $458,655
- Price-to-Rent Ratio: 19%
- Traditional Rental Income: $2,042
- Traditional Cash on Cash Return: 2%
- Traditional Cap Rate: 2%
#4 Fort Wadsworth
Ford Wadsworth is located on the Narrows which divides Upper New York Bay from Lower New York Bay with a population of only 5,000. The town is popular thanks to its revolutionary-era military base which attracts many tourists and visitors.
What makes this town a predilection for many families is safety. According to 2018 statistics, it ranked the #1 Safest Neighborhood in New York City Area. Therefore, for many, Fort Wadsworth makes a great choice to raise a family in. Moreover, Fort Wadsworth enjoys a good public schooling system and a vibrant nightlife. All of these elements make for a location that attracts tenants. For real estate investors in search of affordable housing, Fort Wadsworth is the place.
- Median Property Price: $399,000
- Price-to-Rent Ratio: 19%
- Traditional Rental Income: $1,740
- Traditional Cash on Cash Return: 2%
- Traditional Cap Rate: 2%
Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties in Fort Wadsworth that match your criteria in a matter of minutes!
#5 Melrose
Melrose is located in the southwestern section of the borough of the Bronx. Melrose is a high-density neighborhood with a population of around 25,000. It makes an ideal destination for many real estate investors who are keen on buying rental properties. This is because almost all of the town’s populace rent their homes. About 95% of the population rent their homes while only 5% own them. If you are looking for relatively cheaper rental properties, then we recommend looking into Melrose as it is one of the most affordable neighborhoods in New York City.
- Median Property Price: $430,655
- Price-to-Rent Ratio: 19%
- Traditional Rental Income: $1,850
- Traditional Cash on Cash Return: 3%
- Traditional Cap Rate: 3%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Investing in New York City real estate is surely expensive. Nonetheless, real estate investors should not feel discouraged as finding affordable properties is possible. Keep in mind that the above NYC neighborhoods are some of the most affordable neighborhoods in New York City compared to the rest of the location. So while the prices may be high compared to other affordable cities in the US, they seem like a steal when talking about New York City real estate.