New York Rental Property ROI Calculator
Free New York rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using New York's 1.72% property tax rate.
How This Calculator Works
Calculation methodology and assumptions
This calculator uses standard real estate investment analysis to determine the return on a rental property in New York. It factors in the mortgage payment (using a standard amortization formula), property taxes at New York's effective rate of 1.72%, insurance, vacancy loss, maintenance reserves, and property management fees. The cap rate is calculated as Net Operating Income divided by purchase price. Cash-on-cash return measures annual cash flow relative to total cash invested (down payment + estimated closing costs). The 10-year projection assumes 3% annual appreciation and 2% annual rent increases.
Key State Information
New York has an effective property tax rate of 1.72%, which is above the national average of 1.10%. New York has a progressive income tax up to 10.9% state income tax that applies to rental income.
Frequently Asked Questions
What is the average property tax rate in New York?
New York's effective property tax rate is 1.72%, which means on a $420,000 home, you'd pay approximately $7,224 per year in property taxes.
Is New York a good state for rental property investment?
New York offers a median home price of $420,000 with 2BR rents averaging $1640/month. The higher property tax rate reduces net cash flow but may be offset by strong rental demand. Use this calculator with your specific numbers to determine the actual ROI.
What is a good cap rate for rental property in New York?
A cap rate of 5-8% is generally considered good for rental properties. In New York, cap rates vary significantly by market. Urban areas tend to have lower cap rates (3-5%) but more consistent appreciation, while rural areas may offer higher cap rates (7-10%) with less growth potential.
How much do I need to invest in a rental property in New York?
For a median-priced home in New York ($420,000), a 20% down payment would be $84,000. Including estimated closing costs of $12,600, you'd need approximately $96,600 in cash.
Does New York have landlord-friendly laws?
New York has strong tenant protection laws, which can extend eviction timelines. Factor this into your vacancy rate estimates.
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