NYC Investing: An Easy Guide

Investing in real estate is a great way to earn passive income. You gain wealth through tenant's rent payments. 

Not only that, but you also gain equity as your property grows in value. Because there is always a high demand for housing, owning real estate investment property is a great hedge against economic uncertainty. 

Even as the prices of goods rise, you can always make adjustments to the rent. And with mortgage rates now increasing, people are looking towards renting as a more affordable option.

For investors, it's only a matter of finding the right assets in the best locations. Many often avoid the Big Apple's notoriously high real estate prices in favor of cheaper deals in the South and West. 

But despite their pricetags, NYC real estate guarantees high returns since there is robust demand among residents who have no problems paying more in rent. 

This year, the median rent has gone past $5,000 in Manhattan for the first time as New Yorkers return to the city in droves, residents from the West Coast venture East, and homebuyers get priced out by increasing mortgage rates. 

Now is a good time as any to add an NYC property to your portfolio. It's just a matter of knowing where to get started. 

Taken from my experience as a realtor, here are a few things to keep in mind as you look around for the juiciest deals.

Test the waters

Different investors use different strategies, but with the complexity of the NYC real estate market, doing your homework will help you avoid committing any major mistakes, especially when it comes to choosing between a coop or a condo for your portfolio. 

Gaining intel is crucial in searching for neighborhoods where opportunities abound. Talking with a local real estate professional, reading the latest market reports, and having a chat over coffee with landlords or developers will help you make more calculated decisions. 

Start small

Unless you have the time and resources, Manhattan might not be the best place to find apartments and condos that fit your budget. You are better off buying smaller properties with fewer risks. If you do well at this level, take the next step by purchasing larger properties located in prime areas.

You just have to look for assets with all the right ingredients for attracting qualified renters. Consider the amenities and attractions close to the property You should also determine if the property is located near subway stations and parking garages.

Check for high-opportunity neighborhoods

NYC is a vast community with hundreds of neighborhoods each having a unique set of characteristics. From the big city environs of Midtown Manhattan to the laidback climate of Park Slope, you need to look at the area where the investment property stands.

Is there going to be an influx of new residents? What new developments or construction projects are underway? Does the neighborhood offer a good mix of commercial and residential buildings? It's not enough to buy real estate just because of the price point. Learn how the surrounding neighborhood will affect tenant retention and cash flow. 

There’s a lot you need to take in if you are plunging into the NYC real estate market as an investor. 

But to make things easier (and less risky) for yourself, lean on a real estate professional with a proven background in helping local and out-of-state investors find golden deals!

I’d be more than eager to help you build your presence in the Big Apple’s real estate arena. Call me at 917-627-5677 or send an email to [email protected] so we can get started on your search!