If you want to buy an investment property in New York, it’s important to know what to look for. In this post, we will provide you with 5 things you’ll want to take note of before making a purchase.
Investing in New York real estate is one of the smartest financial decisions you can make. The returns and benefits can be enormous when you choose the right property to invest in. That said, not every property will make a good investment property. Keep reading to learn more about what you should look for in your New York investment property.
Is the property all it can be or is there room for improvement? If the property is maxed out and is as good as is will ever get, you may want to think twice about making the purchase. But if you find a property that needs just a few touch-ups or small cosmetic improvements to increase the overall value, you may have found yourself a real money maker. When looking for investment property in New York, don’t just look at what the property is today. Instead, look at all the property really could be. What are some of the higher rents in the neighborhood and what makes those properties so special? Watch the trends, where people are renting and what they are paying. If the property in question could be made into a property of high-demand, the investment is likely to be a strong one.
Is the property located in a popular area? Take a look at the rental market in your neighborhood. Are there many properties for rent or just a few? How long are they available on average before a tenant is found? When looking for a New York investment property, ideally you will want it to be in a place where rentals are in demand. Look for private sellers to get the prices. Other investors will know just how in-demand the area is and will price the home as such. If an investor is selling a property in a hot area, be sure you know the reason why.
As an investor, the last thing you want is a high-maintenance property or high-maintenance tenants. The house should be easy to maintain both inside and out. The landscaping should be simple, and not require a ton of water to keep things alive. Most tenants don’t put in the same effort with a rental property as they would with a home of their own. So expecting them to maintain a high-maintenance garden is a little far-fetched.
You will also want to see how has the property been maintained in the past. Just like purchasing a used car, you are looking for a house that has been well maintained and free from any long-overdue repairs. A poorly maintained property can have problems developing in places you can’t see. You don’t want to discover poor maintenance leading to bigger problems don the road.
When you find a great property with a tenant already in place, the purchase of the investment property can be a no-brainer. However, while it can be great to make some money right out of the gate, you’ll also need to make sure you evaluate the property separately from this added benefit. If your tenant were to move out tomorrow, how quickly would you be able to get someone else in there?
You’ll also want to make sure that the tenant is paying a fair amount in rent. Sometimes landlords can fail to raise the rent as they should be and you will find yourself stuck with a tenant who is paying much less than they should be each month. While finding a property with a long-term tenant is great, you’ll also want to be sure to ask why the current owner is selling in the first place. Giving up a steady income isn’t something an investor typically does without a reason why.
When purchasing an investment property in New York, it’s important to understand any zoning restrictions or rules created by your HOA. You don’t want to find out after the fact that your tenants cannot do simple things because of rules and restrictions imposed on the property. Also, an HOA may stop you from renting or place certain qualifications on who you are able to rent to. You should also be aware of zoning in case you are thinking about making any changes to the property in the future.
Buying an investment property in New York is a great way to grow your portfolio. Just be sure to purchase based on the facts. Not every house will be a profitable rental. On the flip side, houses you would never dream of owning for yourself can become some of your most profitable investments. Keep an open mind when buying an investment property in New York!