If you've ever wondered what it takes to actually live in Manhattan as a property owner, real estate investor Ryan Serhant has some sobering numbers for you. After nearly two decades in New York City real estate, he recently laid out the financial reality on the "Iced Coffee Hour Podcast."

"I think you have to be earning somewhere around $250,000 to buy a $1 million apartment in Manhattan, if that's where you want to live," Serhant explained.

That might sound steep, but once you dig into the details, the math starts making uncomfortable sense.

Why You Should Put Down 30%

Sure, conventional mortgages let you slide by with as little as 3% down. But Serhant argues that strategy doesn't work in Manhattan's punishing market. He recommends putting down at least $300,000 on that million-dollar apartment.

"Typically you want to put down at least $300,000 so you are borrowing 70% of the purchase price, so you don't have to pay any private mortgage insurance," he said on the podcast. "The baseline is a little bit insane."

A larger down payment does more than just eliminate PMI. It substantially reduces your monthly mortgage burden. Of course, saving up $300,000 takes years for most people, which illustrates just how challenging property ownership has become in New York City.

The Monthly Costs That Blindside Buyers

Here's where things get particularly interesting. According to Serhant, the purchase price itself isn't what destroys budgets.

"It's the monthlies that get you, not the purchase."

He's talking about HOA fees, real estate taxes, and appliance repairs that pile up month after month. But the real nightmare? Co-op boards.

"The co-op board can turn you down for anything and they don't have to tell you why," he said on the podcast.

Co-ops present unique challenges beyond just getting approved. Once you're in, they can make leaving difficult too. These boards can reject buyers who want to purchase your property years down the line, essentially trapping you if they don't like your potential buyers or have issues with you personally.

Condos offer slightly more flexibility. If a condo board rejects a qualified buyer, they're required to purchase the property themselves at the agreed-upon price. That rule creates accountability co-ops simply don't have.

New York's Special Tax Situation

Just when you thought you had all the costs figured out, New York City layers on additional taxes that go well beyond standard closing costs. These expenses push homeownership even further out of reach for many would-be buyers.

"In New York City, the mortgage recording tax is 1.925% of the loan," he said on the podcast. "It's New York City. Everything is taxed, and taxes are only going higher. The mansion tax goes up to 4% in New York City now."

That mansion tax applies to any residential property selling for $1 million or more, and it's calculated as a percentage of the total purchase price. The buyer typically foots this bill, adding tens of thousands of dollars to the final cost.

Serhant's breakdown makes one thing clear: buying property in Manhattan isn't just expensive in the obvious ways. The combination of large down payments, unpredictable co-op boards, recurring monthly fees, and layered city taxes means you need to earn substantially more than the average American household just to establish roots in the city.