Posted by Wei Min Tan on Jul 26, 2022
Best Size Investment Apartment for Rent in NYC – Size of condo apartments for investment in Manhattan range from a studio to 4+ bedrooms. Global investors typically buy Manhattan apartments to rent out as a form of diversification. Our role as one buyer’s broker is to advise clients on what is the right apartment and we go through the process of identifying what is a good buy.
of average selling price for a studio and a one-bedroom apartment are $635,000 and $1.15 million, respectively. Meanwhile, a larger condo, generally two or three bedrooms, ranges from $2.2 million to $3.9 million. Anything 4 bedrooms and up is considered a mansion by Manhattan standards. People don’t usually buy a 4+ bedroom apartment to rent out, but to live in or use as a vacation home or pied-a-terre.
Weimin’s article: Buying a vacation or second home in Manhattan
The most important factors we look at when choosing the best apartment are location, building and layout. We want to ensure that there will be rental demand after the purchase and we can secure a good tenant for the investor client.
Example of agreement: Waterfront client apartment overlooking Port of New York.
Studio and 1 bedroom
Studios and 1 bedrooms are entry level apartments. In terms of studios, there isn’t much to choose from because there aren’t many studios in luxury buildings that have good rental returns. We tend to recommend clients to invest luxury building because luxury buildings command premium rents. For example, many studios in Midtown East or Midtown West they are in non-luxury buildings and do not have high rents. These apartments also have low rental yields.
The price for 1 bedroom ranges from 800,000 to 2 million dollars. The sweet spot for 1 bedrooms is between $1.2 million to $1.8 million. This is where you get the most options in terms of highly desirable buildings and condo lines within buildings. There are definitely 1 bedrooms under a million, but they are usually in non-luxury buildings. The rent they receive will also be much lower.
Weimin’s article: Apartment prices in New York
2 and 3 bedrooms
Since from The covid-19 pandemic, the demand for larger apartments, both in two and three bedrooms, has increased greatly. This is because people want more space, as many of them work from home part-time or full-time. There has been an increase in demand for 2 and 3 bedroom rentals.
Owning a 3 bedroom investment condo is a valuable asset due to high demand and low inventory. As a result of the 40-year high inflation, rents have gone up a lot. The average rental price for June 2022 increased by 29 percent compared to last year. For example, a 2-bedroom in a luxury building used to cost $7,000 to $8,000, now it’s around $10,000 or $11,000. For 3 bedrooms, rents are now $15,000 to $20,000.
Weimin’s article: Investment in a large 3 bedroom apartment for rent in Manhattan New York
Example of agreement: The client’s 3 bedroom apartment which is rented for 1 week.
Look at the location, the building, the layout
The first buyer driver we look at is location, whether the location has high demand for studios, 1-bedrooms, 2-bedrooms or 3-bedrooms. Second, we look at the building. The building should have strong demand, and one easy way to see this is to look at the number of units for sale and rent.
Finally, we look at the layout of the apartment, and it should be clean and practical. Layout also includes unit exposure. Since the buildings in Manhattan are all side by side, there is usually a preferred exposure, which means facing outside. For example, if the outward face on a building means north-facing, then the south exposure will be inward-facing, meaning it faces the building backwards.
Choosing the right apartment is both a science and an art. Science because it is driven by numbers and art because it is based on experience of what the market is looking for, what will rent quickly and at premium rent.
what we do
We focus on Global investors buy apartments in Manhattan ABOUT portfolio diversification and long-term return on investment.
1) Identify the right purchase based on objectives
2) Manage the purchase process
3) Rent out the property
4) Manage tenants
5) Show the property in the eventual sale
Wei Min media interviews from CNBC, CNN, New York Times on the topic of Manhattan property investment
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