Facebook, Amazon, Netflix, Google—four tech names representing multi-billion dollar companies recognized by just about every age demographic in the world, let alone the United States. Billions of consumers from nine through 90, and then some, interact daily with these vaunted businesses through their core services such as streaming video, social media platforms, cyber-shopping, and internet searches. Consequently, the best and brightest software engineers and developers constantly seek opportunities to command fat salaries while creating leading-edge technology products and solutions. The competition for jobs is intense but if you can latch on with one of these behemoths, the big rewards justify the mad, yet calculated scramble.
The same might be said for buying investment property in Manhattan. You know how the tune goes–if you can make it there, you’ll make it anywhere. Strike a few promising deals in the Big Apple and there may be no need to buy or sell property elsewhere. However, investing in rental properties in a city of 8.5 million people differs a bit from buying a few homes in nearby Scranton, Pennsylvania. You’ll need to do your research, act fast, and most of all, know which neighborhoods present the greatest chance for healthy returns on investment.
Where To Look When Buying Manhattan Investment Property
Buying low and selling high, or creating income in the interim will always be the name of the real estate investing game. While established neighborhoods such as SoHo and Tribeca have limited downside volatility, you’ll need deep pockets to buy, and you may have to hold the property longer than expected to optimize ROI. That’s why you shouldn’t discount the opportunities in surrounding up and coming New York neighborhoods that may offer more value. Here’s a few that are currently on my radar for buying investment property in Manhattan.
It’s difficult to find any industry observer who doesn’t see great potential in West Harlem. StreetEasy examined four measures that mark the neighborhood’s rising appeal: annual change in median sales and rental prices along with listing views on its website, and new occupancy certificate filings. While rents grew a modest 6% o, the eye-popping 124% growth in median sales prices over the same time frame pushed West Harlem to the top of the heap in the online real estate database’s rankings. Throw in an easy subway commute to Manhattan’s business district and it’s no surprise that investors continue to sense the opportunity. Find a quality lead source, exercise patience, and you may find an undervalued property that holds promise.
East New York
Mixed views surround this Brooklyn locale. Some real estate professionals cite the gap in median rents compared to other Kings County neighborhoods. However, the village could eventually benefit from the “one neighborhood over” effect, which posits that rising demand and sales prices in nearby haunts such as Sunset Park and Red Hook could spill over into East New York. Median rent prices commanded about $1,900 monthly, a far cry from Brooklyn’s overall figure of $2,550. However, median sales prices came in around $514,000 last year, and I feel deals in that range don’t exist in the surrounding areas. That’s what attracts home buyers when I put my rehabbed East New York properties on the market.
Long Island City
Sometimes you have to follow the folks in the know. With the number of new construction projects cropping up in Long Island City, it’s apparent that developers feel this Queens neighborhood merits attention and investment. To date, 26 apartment complexes housing approximately 9,000 units were either planned or being constructed in Court Square, a slice of real estate between 21st St. and 41st Ave. Spectacular Manhattan skyline views add to Long Island City’s appeal while market-rate rents in new high-rises such as The Hayden pull in $2,400 for a studio and $3,000 for a one-bedroom. Forecasting cash flows from rents, net of taxes, maintenance, and insurance, helps project whether Manhattan-area rentals can help enhance your ROI.
Getting Leads To Buy Manhattan Investment Property
There are millions of people in the city that never sleeps. You can be sure that a number of them, both within Manhattan and indeed around the world, have their collective ears to the ground in search of somewhere to rest their head at night. To garner this market, however, you need to be able to source the leads in Manhattan on great houses to buy, renovate and sell or hold as your real estate investing business grows. HomeVestors® nationally-known “We Buy Ugly Houses®” advertising seeks out potential sellers through television, radio, billboards, and direct mail—helping to drive deals directly to your door. It’s proven: HomeVestors ® franchisees have closed on more than 140,000 homes since 1996.
Looking for an edge over the tough Manhattan real estate investing competition? Call HomeVestors® today.
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