From The Miron Blog

How to Choose an Investment Apartment

By Miron Team | Published on September 26,2011 at 3:23PM

New York City Investment property is a great way to supplement your income as well as an easy way to get into the market if you’re interested in a long term financial strategy. While there is money to be made, there are a few things to consider when choosing an investment property that can significantly impact your experience.

The apartment is one of the most popular types of real estate investments, including everything from a duplex to a high rise, from Brooklyn neighborhoods like Greenpoint and Williamsburg to Manhattan neighborhoods like the West Village and The Upper East Side. Apartments that are well managed can be financially rewarding. Take the time to learn a few tips on how to choose the right investment apartment and look forward to a highly profitable endeavor.

Location, Location, Location

The very first thing that you need to consider when choosing an investment apartment is where it is located. As you’ve probably heard before, a great apartment in a bad neighborhood is not worth as much as an average apartment in a great neighborhood. The same applies for rentals. Consider adjusting your purchase price to make certain that you secure an address that’s a strong investment.

In addition, location is important for other, less obvious reasons. For instance, are there schools nearby? Simply because you don’t have children, don’t make the mistake of discounting those who do and are willing to pay more to be near a terrific school. Make it a point to research the best school districts in the area and start with those neighborhoods first.

Repairs

You don’t have to buy an investment apartment in pristine condition, but do consider your budget when assessing repairs. Avoid apartments where you need to replace major appliances, carpet, decks etc. Minor repairs to increase value, clean up appearance or modernize are fine, but avoid anything that looks like it may need a complete overhaul in a couple of years. Remember, your goal is to rent the apartment and collect a profit. It does not make sense to throw extra money into repairs.

Think About Property Management

In many cases, an investment apartment can be maintained by someone else. In fact, there are property management companies that are more than willing to assist. If you’re interested in handling the management of your property yourself, you can probably save some money. However, be prepared to spend a lot of time with minor issues. In other words, consider property management and the possibilities with each potential investment apartment you see.

Upgrades

Upgrades can potentially increase your revenue if you have the capital to invest. When choosing an investment apartment, look for these options. If there are possibilities for increasing rent with cosmetic or structural upgrades – that’s even better.

Choosing the right investment apartment is easy as long as you follow a few tips. Make certain to look in good neighborhoods with great resources, minimize repairs, consider property management and keep an eye open for potential upgrades.