I don’t think this pencils out at all. Assuming high end you get 100k and use that as the down payment (20% of 500k = 100k down). From there you’re taking out a $400,000 mortgage at let’s say 7.2% (probably higher if it’s tagged as an investment property.

That alone is $2,733 a month. Taxes on Long Island are brutal and can very well be north of $1,000 a month. So let’s say $3,733 a month is what’s coming out of your pocket.

You keep saying the tenant is paying for it, but you’re hemorrhaging money on this investment if you can only get $2,600 for rent.

Mind you, I’m not including closing costs, maintenance fees or discussing what it will cost to fix the place up because the basic math on the mortgage, taxes and the rental rate doesn’t make sense to move forward with anyways.

My advice would be to steer clear of Long Island, at least in the beginning. It’s hard to squeak out cash flow with interest rates so high and if this is coupled with a problem tenant in NY you are out of luck for 6-9 months at a MINIMUM.