*Year end Real Estate Update-Areas of Ridgewood, and Middle Village, the two increasingly hot areas investors have been purchasing Mixed use, Taxpayers, and Commercial apartment buildings.
The ratio of 16 to 17 x’s income have been going on the past 4 months do to supply and demand. And since the rents go up on properties in 2018 for regular rent increases, that shaves down the multiple a little come 2018. Unique properties like a taxpayer, or a 12 Family brick steps to the train, that has only one bedroom apartments and studio’s means less tenants, less water bills, less headaches, and less repairs when the building is in Pristine Condition.
In 2017 many buyers have acted irrational by purchasing 6 families at 19 and 20x’s income, just because the building is steps to the train in Ridgewood. And many are buying with buildings that have poor interiors and tenants paying low rents. This is not cost effective at all.
In conclusion, now paying 16 or 17 times income for specific type of buildings is the way to go. Building renovated, new tenants paying the current market rents, with leases in place assuring you continued rent increases. This is cost effective, and the benefits for a Taxpayer is the tenants pay a part of the increase in taxes. The buildings with the smallest apartment rooms means less people, less water bills, less headaches and less repairs.
There is still time to purchase now in 2017 close in 30 days and enjoy the rent increases and ownership in 2018. Winter is a great time to buy. In spring your competitors all come out looking to purchase and adding to the frenzy. I have 38 years of experience, and have helped many who now own 4-12 Properties because they were open minded to my advice.
_____JIM TURANO/BROKER-DIVERSE REAL ESTATE_____
73-12 METROPOLITAN AVENUE, MIDDLE VILLAGE,NY 11379