A 2 bedroom/2 bathroom apartment in the Upper West side condominium 400 Central Park west, was rented for $5,200, in as is condition. The apartment features an extraordinary view of Central Park as it has two exposures, one facing south and one facing east directly into the park.
The building features a 24 hour concierge, bike room, storage, parking, live-in-super, on site management, laundry room in basement and resident’s lounge. The building also has private gardens and a superior location adjacent to central park, close to Whole Foods and many train and subway lines.
The Author- Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.
If you are thinking of buying a Manhattan condo for investment with the objective to hold for rental income, here is one simple tip that is often overlooked.
In general, after paying common charges and taxes, you will gain an approximate 2% return annual. So an apartment that you acquire for $2 million will yield approximately $40,000 in net income. In some cases, you might have an even lower return.
One type of property that you might consider is an apartment with enough space to add an additional bedroom. With the right design, you can rent an additional bedroom/den for a higher income just due to the increase in bedroom count. I had one listing where they converted the dining room to a 2nd bedroom and as a result we were able to rent the apartment for $4,200 whereas similar size apartments without the conversion were renting for around $3500. This made the return on the apartment based on the current market value closer to 3%.
You will need to see if the layout will allow it. Usually a space will need to have a minimum of 750-800 sqft to accomplish this but it will also depend on the current layout. A dining room or a dining area will be an ideal area to make the additional bedroom as long as there is a window and enough space.
With more people than ever sharing apartments and families remaining in Manhattan, this a nice way to gain an additional rental income and increase your yield on the property.
News about the NYC real estate residential and commercial markets provided and interpreted by an industry veteran licensed since 1999. Brian Silvestry of BSRG Inc. Licensed real estate broker