Renovation expenses in New York City typically range from $50 to $200 per square foot, depending on the scope of work, material quality, and contractor reputation. Bathroom renovations—classified as “wet areas”—generally cost between $20,000 and $40,000 or more. Design-and-build firms tend to command premium pricing, often starting around $30,000, in exchange for convenience, speed, and end-to-end service.
If you're purchasing in a condo or co-op building, be prepared to submit an alteration agreement and detailed renovation plans for approval by the building’s Board of Managers. Each building has its own renovation rules and requirements that must be followed.
Buyer closing costs in NYC vary by property type:
If you are financing a condo or house, your costs will be higher due to the Mortgage Recording Tax (MRT). In contrast, all-cash buyers enjoy significantly lower closing costs. Note that MRT only applies to real property, so co-op transactions are exempt.
To estimate rental income, review current and past rental listings in the building and surrounding area. Your buyer’s agent can often prepare a comparative rental analysis (rental comps) for further guidance.
For multifamily properties, the listing agent typically provides a rent roll, outlining current and projected rents, lease terms, and operating expenses.
Property tax information is usually included in condo and house listings, shown as a monthly amount.
Co-op properties show $0 for monthly taxes because co-op corporations pay property taxes directly to the city.
Co-op owners instead pay a single monthly maintenance fee that includes both common charges and property tax contributions.
Condo owners, on the other hand, receive individual property tax bills from NYC’s Department of Finance and either pay them directly or through their lender.
Common Charges & HOA Fees
All condos and co-ops have a shared operating budget, funded through monthly maintenance fees paid by each unit owner. These fees are typically calculated based on unit square footage, floor level, and outdoor space.
Condo common charges do not include property taxes.
Co-op maintenance charges, however, do include property taxes.
This difference arises because condo owners hold real property title and are taxed individually, while co-op shareholders are part of a corporation that handles taxes on behalf of all units collectively.
Utility Bills & Other Operating Expenses
The best way to estimate utilities is to ask the listing agent for details on what the current owner is paying.
For multifamily investments, these expenses are usually detailed in the rent roll, which includes operating costs, lease terms, and rental income projections.
The vacancy rate reflects your expected annual income loss due to unoccupied units.
For example:
If one unit in a 5-unit building is vacant year-round, the vacancy rate is 20%.
If a condo unit is vacant for 1 month per year, the annual vacancy rate is 8.33%.
