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New York City is a great place to invest in residential real estate. Real estate is something that needs to be taken seriously. You will find out that there are many residential building to invest in. It is important that you take your time and find the right residential property to invest in for you to make profits. Below are factors to consider when choosing New York City residential real estate.
First, you need to know the specific location in New York where the property is located. Compare it with similar properties that have recently sold. Remember your aim is to make profits. It is vital that you pay an amount that is reasonable so that you may make profits if ever you decide to sell the property. Make sure you know in advance the condition of house you are interested in. It is advisable to hire a professional to come and inspect the property. However, if you have no problem with buying a fixer-upper, you need to consider the time and money you will spend to redo the place. Take into consideration the time it will take to do repairs and evaluate if its really worth it.
You must have your own goals as a residential real estate investor. In real estate most investors abide by 1% rule. This means that for whatever amount you invest in, you need to get back 1% of that amount as income. However, if you find a residential place where there is potential for growth you can exempt this rule. Consider the taxes before settling for a specific New York City residential real estate. High taxes means less profits and vice versa. Talking to a tax assessor is vital to get an estimate of what you are expected to pay.
It is also important to consider the cost of insurance. Put in mind the coverage types that is appropriate for the residential building. Smaller premiums usually have higher deductibles when making claims. It is wise to compare different insurance company rates. You will find that most companies have online calculators. You can also call a few insurance companies and get more information about their policies.
In addition, being a landlord can be time consuming. This is why most New York City landlord opt to hire the services of a property management company. This way your property will be taken care of at a fee. The primary role of investing in residential real estate is to make profits. You also need to be prepared for unexpected expenses such as repairs on major parts of the house such as roofing, HVAC system and others.