7 Tips for Purchasing Investment Real Estate in New York City

7 Tips for Purchasing Investment Real Estate in New York City Buying a piece of real estate is the first step in building a portfolio of assets that will increase your wealth. Working hard in your chosen career affords you disposable income, and if you are smart, you have been saving as much of it as possible. Eventually, your savings will snowball into a sizable chunk of capital that you can use to invest in high-yielding property deals. Investing in the New York property market can be tricky. The world’s most famous city has thousands of great deals just waiting to be discovered on any given day. However; finding them and executing a sale may seem harder than it is. Here are seven practical tips you can apply when searching for your first piece of investment real estate in the Big Apple. #1 Know Where You Want to Go Begin with the end in mind. What is your exit strategy? Do you intend on holding the property indefinitely or flipping it for a profit in a few years? Determine the type of property investment model you wish to follow before jumping into any deals. #2 Location is Everything Investing in the right neighborhood is an essential part of finding the right deal that could have enormous future upside potential. Speak to your local property agents about deals in their area. Agents will have specialist knowledge about public improvements and developments that may increase the value of property in the local area. #3 Look for Undervalued Deals If you are keen on flipping property, look for undervalued deals in and around areas that are close to amenities and other social conveniences such as subways. Investing a bit of capital into a dilapidated property can earn you an excellent return if you find the right deal and renovate the house well. #4 Square feet isn’t Everything NYC is one of the most densely populated cities on earth. Needless to say that living space is a very valuable commodity. If your investment strategy is to generate rental income, look towards finding apartments that have as many rooms as possible. A home or apartment with more bedrooms has more demand among renters, even if the bedrooms are a bit undersized. #5 Speak to a Lawyer for a Second Opinion As a property investor, you will need a solid team of professionals to work with if you want your investments to be successful. Hiring an accountant and developing a relationship with a broker or agent is incredibly important. Securing a contract with a maid service and maintenance manager will ensure your tenants are kept happy. Another vital component of your property team is a licensed attorney. Your attorney can review all deals and assist you with discovering any outstanding issues with the property, such as unpaid tax bills. #6 Don’t Loan More Than You Can Afford When it’s time to raise the capital for your deal, be prudent with your lending. Never loan more than you can afford and always expect interest to rise in the future. Make compensations for a changing economic climate and avoid bad debt that could sink your investment. #7 Complete a Thorough Property Inspection Before you sign the paperwork, ensure that you have had the property thoroughly inspected by professionals. Hire an electrician to review the apartments wiring and issue you with a clearance certificate. Check the plumbing, the fixtures, the ceilings and the floors for any signs of burst pipes or other irregularities.