Carpe Diem, Seize the Day.
I don’t talk about it very often, but there are a few untold rules that real estate investors live by. Here are the most important three:
1. You Make Money When You Buy.
This means that even when the market is going up fast, theoretically you should buy at a price which is lower than the median of the area or neighborhood where you want to invest.
So you should be looking for owners who must sell for important personal reasons.
2. Location, Location, Location.
Maybe this is the most well-known rule. It’s not enough to buy at a price which is lower than the median. If the property is in a not so attractive area, where you wouldn’t be proud to say that you own a home, or – if the area is not exactly where you would go for a cocktail with friends on Friday evening – where you are not sure to have an incredible upside in terms of value growth, then it’s much better if you spend your money in some other way.
3. A Property Must Always Make Money to the Owner.
Even if you have decided not to rent it, it’s a wise rule to buy a property which, if rented, produces an income which is comfortably covering all the fixed costs, even in the worst market (see COVID in NYC).
Considering these unspoken rules, I have the pleasure to present an off-market property, in Manhattan, which is largely underpriced and perfectly fits the three criteria we just saw:
- Asking price $975,000, corresponding to $1,180 / SF. In 2018, an identical apartment in the same building was sold for almost $1,200,000.
- Prestigious address, in one of the world's most renowned streets.
- Income-producing property, currently rented to a highly qualified couple.
Check it out for yourself, following this link!