Across the past decade, cap rates on NYC rental property have run from roughly 3.5% in prime Manhattan to over 7% in the outer boroughs, based on RLS sales data. The number that actually decides whether a deal works, though, is not the cap rate on its own. It is the cap rate next to your financing cost. A 4.5% cap rate looks fine until a 7% mortgage turns the monthly cash flow negative.
In my 25+ years working investor deals across the five boroughs, the most common mistake I see is an investor who screens on gross rent, ignores the co-op sublet question, and forgets that a condo carries both common charges and taxes while a co-op bundles the taxes into maintenance. This tool bakes those distinctions in so the ranking is honest before you ever call me.
Why co-ops sit out by default
Roughly half of NYC apartment inventory is co-op. Most co-op boards restrict or ban subletting, and many that allow it cap the number of years you can rent. A co-op cap rate is often a number you can calculate but not act on. The deal-finder ranks condos, condops, and small multifamily first for that reason. You can opt co-ops in, but each one is flagged so you confirm the sublet policy in the board minutes before you count on any rent.
The carrying-cost trap
Condo underwriting and co-op underwriting are not the same math. A condo owner pays common charges to the building and property taxes to the city as two separate bills, so both belong in operating expenses. A co-op shareholder pays one maintenance bill that already includes the building's property taxes. If you add taxes on top of co-op maintenance, you double-count them and the yield comes out too low. The tool applies the correct expense structure for each type automatically.
Screen here, underwrite with real data
This tool is a screen. It uses neighborhood rent medians, not the actual rent this unit would command, and it cannot see special assessments or a specific building's insurance. Use it to shorten the list, then request the real rent comps, tax bill, and board minutes before you make an offer.
Have a shortlist? I will underwrite it with you.
I can pull actual RLS rent comps, the real tax and maintenance figures, and recent building sales for any address on your list. No charge for the conversation.
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