Going into real estate business is like going into the food industry. There are so many people doing it, that you might wonder how in the hell are you going to make any money. The competition is fierce, and you have to be clever and quick if you want to make it worth your time. Luckily, being properly informed is a great first step, and you are already taking it. There are some NYC neighborhoods for rental investment that are worth checking out, but you need to be in the right state of mind. Here is what you need to know.
Interesting NYC neighborhoods for rental investment
What you need to keep in mind when looking for NYC neighborhoods for rental investment is development. You aren’t looking for neighborhoods that are already awesome to live in. Those will be expensive. What you should be looking for are neighborhoods that are currently developing. In those neighborhoods, you can buy real estate for a relatively small amount and witness how it’s worth increases over time.
Inwood is a great, developing neighborhood in Manhattan. There are greatly undervalued properties that are huge compared to what you can get in the rest of Manhattan for the same price. Average apartment rent is $1,303, but the prices are constantly rising.
Prospect Heights, Brooklyn
Considered the heart of Brooklyn, Prospect Heights has great access to subway. There are 9 subway lines going through it, which means that the access to other parts of NYC is great. This is always a good note to mention when renting your apartment. The neighborhood is close to Brooklyn Museum, Brooklyn Library and Brooklyn Botanical Garden which means that you can expect a young intellectual to be looking for such accommodation.
Yorkville lies on Manhattan’s Upper East Side. The recent arrival of the Q-train has increased the value of property in Yorkville. This area is not known as a good investment area, but that is simply because it is still developing. Therefore, you will easily find undervalued apartments that will double their worth in a matter of years. Here you can purchase a two-bedroom apartment for the price of a studio in the rest of Manhattan.
Long Island City, Queens
Queens is experiencing such growth in the real estate market, that companies dedicate whole teams for just dealing with them. Younger crowds are moving in and changing the neighborhood into a more modern one. By investing in Long Island City you can expect great financial returns, as more and more young professionals are moving in.
How to look for a right neighborhood
Finding the right NYC neighborhoods for rental investment takes time and knowledge. You need to what to look for if you want to have financial gain from purchasing real estate. You will also need to know who you are trying to sell your apartment too. Knowing what your potential tenants are looking for is half the battle. You can also advise them to use which Brooklyn moving and storage services to use in order to make their move as easy as possible.
What makes an apartment interesting
What you need to realize is that not everyone is looking for the same apartment. Different people have different lifestyles, and you need to figure out how your apartment can help then thrive in theirs. If you want to rent your apartment to families you should look for a quiet and safe neighborhood. On the other hand, young, single professionals are looking for apartments that are close to public transport and easy to maintain. Knowing your customers will help you better look for NYC neighborhoods for rental investment.
Crime rate, schools, transportation
By knowing your customers, you will know what your neighborhood should have. Check for crime rate, quality of schools and public transport. These pieces of information are the selling points of your apartment. Many people are uninformed about the neighborhood they are moving into. They’ve hired one of the commercial moving companies NYC and stopped caring. It is up to you to give them the idea of what life is like in your neighborhood. Know how to sell your apartment.
Location, location, location
Usually, the most important thing when it comes to NYC neighborhoods for rental investment is the location. A crappy apartment with a good location will sell much better than a good one with a bad location. What you need to do is to figure out why your location is desirable. Explain all the logistical benefits of living in your neighborhood. Make sure that your future tenants have the feeling that they will be close to everything that they might need by renting your apartment. There are even some neighborhoods in New Jersey that are worth checking out.
What you need to know about renting
Renting a place and owning a place are two very different things. Yes, in both cases you buy an apartment, but renting is not a simple passive income scheme. Before getting into it, you should keep a few things in mind.
Even though you are earning rent money, there are things that you will have to pay for as an owner. Taxes, for one, are paid by the owner of the property. Also, you will have to pay for any repairs and maintenance of the apartment. This expenses will have to be counted in once you start renting your apartment. You cannot start renting while being broke. You need to have some funds in order to do it properly.
You own an apartment. Great! Who says that people will live in it. With ownership come risks. You might find yourself not having a tenant for some months. And even though your apartment is empty, you will still need to pay for the bills and taxes. While we predict that the neighborhoods we listed will increase in worth, we are no future tellers. Things can change. Therefore, it is up to you to decide if buying an apartment is a good investment. But, remember, he who dares, wins!