8 family on lincoln place only 5 mil

They'd have to get a lot more than that. If the building is $5 mil and there's roughly 6800 sq. ft that's only $6.8 mil. By the time you're done with mortgage filing fees, other costs and the cost of reno it's not worth it. You'd need to be able to flip for at least $9 mil.

I'm thinking real estate is only going to appreciate at the rate it has been until interest rates start to rise and that may be as early as this month. Borrowing costs will be higher and it might take longer to recoup one's money as buyers aren't going to be out bidding each other. I think this building will be on the market for quite a while until there's a decent price drop.

True, but in this case we were discussing flipping the entire building. In addition, global players aren't willing to throw their money away. Remember, back in the 80's a company in Japan bought Rockefeller Center for $800 million and ended up selling it back a few years later for about $300 million. Lots of people learned big lessons from that.

NYC may appreciate but will people appreciate NYC? In any event, I hear Bronx is the next big thing because Brooklyn is getting overpriced so people are moving there for the savings just as they did when they moved here from Manhattan. So, once that borough gets to be perceived a little better there may be a kind of price war going on as the people who buy there now get the best deals.

I don't think a novice investor would start off with a $5 mil building. They're more likely to go for a 3 or 4 family. According to the listing there's about $32,000 NOI so if that's after the mortgage payment there's a little money to be made but if the figures were true I'm sure this would be sold fairly quickly.

I agree, bad deal, price is too high. Never said it was a smart novice investor, nor someone on their first building. Never seen a Corcoran listing that was priced sanely.
Some people have $2m to invest and some have more.
A 6 unit behind my house was on the market, with a listing, and there were a lot of novice investors checking it out.