April 16, 2025
Buying a condo in NYC isn't just about liking the unit—it’s about buying into the building. And if you're not careful, you could end up with an investment that drains your wallet instead of building your wealth. Here’s what I look at before giving a condo the green light.
Start with the Financials
Always, always review the building’s financials. Ask for at least two years of financial statements. You want to see healthy reserves, low debt, and no red flags like huge increases in maintenance fees or assessments on the horizon. A strong reserve fund tells you the building can handle repairs without slapping owners with surprise fees.
Pay Attention to Maintenance Fees
High maintenance fees aren’t always bad—but they better make sense. If a building has doormen, elevators, a gym, and other amenities, higher monthly fees are expected. But if you're staring at a $1,500 maintenance fee for a walk-up with no perks? That’s a red flag. Make sure you understand what you're paying for and how it compares to similar buildings in the area.
Read Between the Lines with the Board
The board can make or break your investment. Dig into the board minutes (your agent can request these during due diligence). Look for signs of dysfunction: frequent legal issues, infighting, or constant complaints from residents. A well-run board keeps the building in good shape and protects property values.
Assess the Building's Condition and Capital Plan
Walk the halls. Check the elevator. Ask about recent or upcoming repairs. A building with a clear capital improvement plan and regular maintenance is usually a safer bet. If the roof is 20 years old and the boiler’s on its last legs, you could be on the hook soon—so factor that into your offer.
Don’t Forget the Owner-to-Renter Ratio
Many lenders don’t love buildings with high rental ratios. If too many units are investor-owned and rented out, it could hurt financing options and resale value. Ideally, you want to see at least 50% owner-occupancy.
Bottom line? The apartment might look great, but the building behind it tells the real story. Do your homework and lean on a knowledgeable agent who knows how to dig into the details.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
