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Investing in rental property has lots of potential for building passive income and increasing your long-term wealth. Brooklyn is one of the best places in New York to do this.
Brooklyn real estate has a lot to offer, such as one-of-a-kind restaurants, live music, waterfronts, street art, Coney Island, Prospect Park, and the Brooklyn Bridge just to name a few. With its close commute to Manhattan and plenty of things to do and try, there’s no wonder thousands of people want to move to Brooklyn each year.
While investing in Brooklyn has the potential to significantly improve your financial standing, it's crucial to do your research and seek expert advice before purchasing your Brooklyn real estate investment. This way, you will more likely maximize your returns.
Thankfully, Olympic Property Management can help you. In this article, we will go into our top tips when buying an investment property in Brooklyn.
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What Is the Brooklyn Real Estate Market Like?
Brooklyn’s real estate market is ever-growing and offers plenty of opportunities for investors looking to expand their portfolios. In the past two years, new lease signings for rentals have increased significantly, making this area one of the most sought-out places to live in New York.
As such, Brooklyn is considered a buyer's market. There is a need for rental properties for every income level. With that said, it is crucial to choose a property that is a smart investment for your specific needs and goals. Follow these tips to learn how!
Top Tips for Real Estate Investments in Brooklyn
1: Find Properties in Your Price Range
As previously mentioned, there are many types of rentals available in Brooklyn. You’ll be able to choose between everything from traditional houses or historical townhouses to luxury condos.
Before you start searching for properties, it's important to figure out your budget. This will help you narrow down your choices and find a property that fits your requirements.
Whenever you are determining your price range, it is also essential to consider all the associated taxes and fees. These expenses can add up quickly, so it's essential to include them in your calculations.
2. Opt for High-Rent Neighborhoods
There are dozens of neighborhoods in Brooklyn, and choosing the right one to buy an investment property is crucial. Keep an eye out for the areas that have the highest rent payment to purchase price rate in order to maximize your ROI.
Additionally, you’ll want to factor in the costs of any renovations when comparing the upfront expenses of your rental property with the potential income.
3: Consider the Benefits of Professional Property Management Services
Many first-time landlords and investors aren’t fully aware of what they are getting into when purchasing a rental property. You will also have to manage the property and its tenants on a daily basis, and these responsibilities can be especially time-consuming if you have multiple rental units.
As a landlord, one of your responsibilities is ensuring your Brooklyn rental property is habitable at all times, which requires regular upkeep and repairs. You also need to be available at all hours of the day to answer any emergency requests or complaints.
Managing on your own demands constant time and attention. If that’s not what you’d prefer, you should consider hiring the services of a reputable property management company, such as Olympic Property Management.
At Olympic, we have a team of the best property managers who can handle all of your responsibilities for you, all while providing a maximum quality of life for your tenants. With us, you can focus on being an investor, not a landlord.
4. Crunch the Numbers
Brooklyn's median sale price is 133% higher than the national average. Although owning a rental unit in this area is worth it, it’s still a big investment.
So, before signing any purchase agreements, you should make as many calculations as you can to see the potential return on your real estate investment in Brooklyn.
It's a good idea to make conservative calculations. Relying solely on optimistic projections for your investment plan could result in insufficient monthly income.
The opposite is much better. When you make conservative projections, then you can experience a higher return, property appreciation, and other positive developments.
5. Research the Market
When you have selected your neighborhood, start by understanding how the market is behaving right now. Do your research on rental properties similar to yours and assess the average amount of rent they charge per month.
Moreover, you should aim to predict where the market will head in the future. Research if there are any ongoing developments such as new real estate projects, shopping malls, and schools, as they could be indicative of potential growth opportunities.
6. Boost Your Rental Property’s Appeal
Once you have closed the purchase, it’s time to make the property as attractive to prospective tenants as possible. Here are some of the steps that you can take:
- Think about the little details. Small upgrades, like replacing the faucets, painting the walls, or adding a backsplash can do wonders.
- Offer amenities renters want. Amenities can greatly improve the value of your rental property. Most renters are willing to spend extra for convenience.
- Emphasize what makes your property unique. If there’s something that makes your rental stand out from the rest, such as its location, view, amenities, or size, make sure to emphasize it in your marketing.
Real Estate Investing Tips in Brooklyn in a Nutshell
Brooklyn is one of the best places to invest in New York. Although buying a rental property in this area is a big investment, it’s worth it. Brooklyn is one of the most popular places to live in New York, with plenty of tenants willing to pay higher rent to live here.
Before purchasing an investment property in Brooklyn, you must determine the price range that you are willing to operate in. Before signing any purchase agreements, make sure to crunch out the numbers to ensure you will get a good return on your investment.
It’s also a good idea to do plenty of research beforehand to find the perfect neighborhood to invest in. And, if you don’t have the time to be a full-time landlord, you should consider hiring a professional property manager.
If you have more questions about investing in Brooklyn, contact Olympic Property Management! We’ve helped countless property owners and investors in New York succeed. We can help you too!