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Purchase Price

Closing Costs

Renovation Costs

Monthly Rental Income

Annual Expenses

Property Taxes

Property Insurance

Common Charges or HoA Fees

Maintenance and Repairs

Utility Bills & Other Expenses

Property Management Fee (%)

Vacancy Rate (%)

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Monthly Rental Income

Annual Expenses

Property Insurance
Maintenance and Repairs
Utility Bills & Other Expenses
Property Management Fee (%)
Vacancy Rate (%)

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Annual Net Operating Income
Monthly Net Operating Income
Cost Basis
Cap Rate (%)
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Glossary

Renovation Costs

Renovation costs can range anywhere from $50 to $200 per square foot depending on the scope of work and the quality of both your contractor and the materials/finishings being used. In NYC, the renovation of a bathroom (also known as a wet area) can range from $20k to $40k or more. Your typical ‘design and build’ firm will charge the highest prices (upwards of $30k) because of the convenience and speed they offer. Condo and co-op buildings in NYC will require you to complete an alteration agreement, submit your renovation plans for approval to the building’s Board of Managers and follow specific renovation rules.

Closing Costs

Buyer closing costs in NYC are approximately ~4% for condos and houses. Co-op buyer closing costs are closer to 2%. Your buyer costs will be higher if you are financing the purchase of a condo or a house because of the Mortgage Recording Tax. As a result, all-cash buyers have the lowest buyer closing costs. The MRT (Mortgage Recording Tax) only applies to ‘real property’ which means it does not apply to co-op apartments.

Monthly Rental Income

You can estimate monthly rent by looking for current and past rental listings in both your building and the neighborhood. Your buyer’s agent may also be able to prepare a rental comps report for your review. If you’re buying a multifamily property, the listing agent will usually provide you with a rent roll. This will show the current and projected rents, lease terms as well as current expenses for the property.

Property Taxes

Monthly property taxes are customarily listed on condo and single or multifamily property listings online. The input to this field is $0 for a co-op since co-op corporations pay property taxes directly to the municipality on behalf of all unit owners. Co-op owners make one single, monthly ‘co-op maintenance payment’ which essentially includes common charges and property taxes. You can also search for property tax bills in NYC using this tool.

Common Charges or HoA Fees

Both condos and co-ops have an operating budget which is paid for collectively by all the owners through a monthly fee charged to each unit owner. This maintenance fee will usually be split proportionally and fairly among the condo owners and coop shareholders, typically dependent on the amount of square footage their apartment has and other factors such as floor and outdoor space.

Condo common charges are different from co-op maintenance charges in that property taxes are not included. Because condominium owners are holders of real property, they are taxed individually by the NYC Department of Finance. As a result, they receive a property tax bill by mail and pay directly or via their mortgage lender. Co-ops make property tax payments on behalf of the entire building, and this means individual co-op owners do not pay property taxes directly.

Utility Bills & Other Expenses

The easiest way to estimate utility bills is to ask the listing agent for an overview of what the current seller has been paying. If you’re buying a multifamily property, the listing agent will usually provide you with a rent roll. This will show the current and projected expenses, lease terms as well as current and projected rents.

Vacancy Rate (%)

The vacancy rate is the annual percentage loss on rental income resulting from vacancies. Here’s an example: if on average one unit in a 5 family multifamily property is vacant, the vacancy rate is 20%. Here’s another example: if your condominium is vacant for one month on average each year, the vacancy rate is 8.33%.

Disclaimer: Hauseit’s Cap Rate Calculator provides estimates that are meant to be illustrative and used for reference purposes only.
Disclosure: Hauseit and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. The services marketed on Hauseit.com are provided by licensed real estate brokers and other third party professional service providers. Hauseit LLC is not a licensed real estate broker nor a member of any multiple listing service (MLS).