Recently, I had a client looking at a co-op building on the Upper West side where there is a 15% flip tax on the profit made from the sale. At first, this would seem like a very high amount but considering that the maintenance charges were low at only about $1 per square foot, maybe it is no that high. An average co-op would have a maintenance about $2 or so per square foot. So a 2 bedroom apartment of about 1300 square feet will come with monthly maintenance of about $2600 per month on average.

The one thing to take into account when purchasing a co-op or condo in Manhattan is that you pay when you purchase, while you live there or when you sell. One way or another you will pay for the upkeep/improvements of your building. Some buildings are loathe to have assessments so instead their monthlies are higher. Some buildings prefer to assess and keep the monthlies lower.  Some buildings have you pay a flip tax when you sell to fill their coffers. So a flip tax is not necessarily bad. When you purchase a Manhattan apartment, part of the due diligence process is for your lawyer/CPA to evaluate the financials of the building that you are considering. Looking at the entire picture, flip tax, assessments and history of maintenance increases will help you to understand better the financial strength of the building.