On March 7, 2012 I had the good fortune of attending a very unusual closing on behalf of my client. My client was interested in investment opportunities that would afford him positive cash flow as well as long term appreciation in value. After 12 months of scouring listings, creating cost analyses, previewing many potential properties and placing multiple offers that were rejected, I found this bank owned unit in a luxury apartment building in the center of Livingston, NJ – an affluent suburb with excellent proximity to NYC.
Its only 3 weeks later and the purchase is already paying off big time. In 2008 (the year it was built) the apartment sold slightly over $1,000,000. We were able to secure it for only $665,000. The plan was to rent it out and eventually sell it once the market had substantially recovered . We knew the rental market was doing well, but were somewhat surprised when I had it rented within a week for $4,500 per month. Because the investor paid cash for the apartment and the property taxes and maintenance fees are relatively low, he is able to generate more than $3,000 per month in positive cash flow– or 5.4% ROI – way better than most investment choices can offer.
Based on available research, our assumption was that the appreciation would happen over the next 5-8 years. However, there are now 5 other apartments in the building on the market which are much smaller in square footage with List Prices that are proprtionately 50% more than the $665,000 he paid. Even if they only trade for 20% more per square foot his ROI is still huge.
If you have the money, don’t mind taking a bit of a risk and want to make lemonade from the lemons from this 48 month lnog recession — real estate investing is a great choice. Call or TEXT me to discuss the opportunities waiting for you at (917) 327-0701.