New York is truly a giant place – and we don’t mean just the sheer geographical size alone. Everything is huge. Culture is diverse and thriving. The population is numerous and dynamic. New communities rise up all the time in ever increasing NYC world. And, with all that size, one thing is certainly not be underestimated. The opportunity. New York City offers opportunities like no other place in America. Its economy is an arena and the prizes are huge. And, if you are reading this you already are thinking of taking on this huge opportunity by flipping an apartment in NYC.
Well, dear reader, real estate business in New York is truly a place to be. All you need is information and the courage to invest
General information on flipping
Well, this might be unnecessary for all of you who are preparing or (actively doing) flipping for some time now. But for those who are just now getting into the flipping business, here are some basic information.
So, back to basics. There are, for the most part, to ways to make a profit in the real estate industry. The first option is to buy an apartment building, condo or a house and then rent it out to tenants. The second one, the one we are talking about, in this case, is flipping an apartment in NYC (or anywhere else, really).
So for the first option, it goes little like this. You buy a house, condo or a whole apartment building somewhere in New York (for example). Using the knowledgeable movers NYC, tenants will come in and pay you the rent, which you use to pay the rest of the expenses you have taxes while you maintain the place. With careful consideration its a steady stream of money.
However, it is a poor return on investment. It is considered a safe option, and it is quite passive – not requiring much time. But, it also demands a lot of your money as you cant (in the vast majority of the cases) use investors. These limitations are exactly why the option two appeared.
What does flipping offer that renting doesn’t?
Flipping combos and such can theoretically require no upfront but is also intensive in time consumption and considerably riskier than simply renting.
In the core of flipping is finding apartments that you can buy low and sell high. To do this, you will, most of the time find condos that need some fixing up that would dramatically increase its selling price. Most of the time you will buy such real estate from somebody who has to sell it fast (due to various reasons such as divorce, for example).
For some, flipping a building will also mean you will live in it, but this is not always the case. It is, however, a good way for many flippers to get a taste of an apartment they usually couldn’t afford. As it sometimes takes an even a year or two or even more to sell, flipping an apartment in NYC might be a good way to live the best life in NYC.
What are the risks and rewards when flipping an apartment in NYC?
Well, let’s look at it realistically. NYC is expensive. Like, really, expensive. Now imagine the price of real estate in, let’s say, Manhattan. Those sore high are really available to the big players.
However, there are a lot of developing neighborhoods that are springing up in all five boroughs of the Big Apple. We talk about neighborhoods whos value is mostly down to neglect, and whose income will rise as more people show up. Buying a run-down building there and making it work would be a great return on the investment. However, there are some caveats.
Flipping an apartment in NYC means you are playing with the big boys. It is a difficult market to predict, and you can lose a lot. This is why you should consider the following words of advice:
- Get the right estimate. The same way you would get top moving quotes NYC, meaning by finding professionals, holds true for property estimation too. Get good agents in your endeavor of flipping an apartment in NYC.
- Don’t get bogged down in repairs. If it seems like it a lot of work to make an apartment up to standard – it’s not worth it. Investors that will help you buy the place expect a return on their investment, with interest. You must not sink too much money in repairs.
- Research the community. Flipping apartments are sometimes pretty helpful for a whole neighborhood. Communities need active apartments to thrive and your flipping might help the up-trend. However, do your research and be realistic. You don’t want to buy an apartment where nobody wants to live. There are many dynamic neighborhoods to look at when flipping an apartment in NYC, so go find them!
A lot of it. Unlike renting, you are not just having some passive income on the side of your regular job. In some cases, flipping apartments is a job, and it has to be taken that way. You have to invest time in it, but the return can be huge.
So, before you imagine relaxing in the best sports bars in Brooklyn with all that hard earned cash – how much will you actually have?
How big is the return?
When comparing to renting, a lot bigger, but it is not guaranteed. You have to take a chance and take your time. It might be just like in those reality shows where you flip in a really short time, but it also might take years. New York lives fast, so you might have a quicker job than in most of the country, but still.
Returns to investment, properly done with all the elements we mentioned kept in mind, 50% should be expected (once you pay off investors and repair cost you take upon yourself).
So, the chances for profit are great, but so is the risk. Will you have the bravery to try it?
Just remember, it is true what they say – if you can make it in New York, you can make it anywhere!