While any investment
can come with an amount of risk, savvy residential real estate investors know
how to turn possibilities into rewarding ventures. According to Coldwell Banker
Residential Brokerage in Mendham, there are many good investment properties on
the market right now – it’s just a matter of what to look for, where to find it
and how much to invest.
Mark O’Donnell, owner
of the investment firm MSO Equities, LLC, explains location is key. “The value
is where the property is located. You will probably pay more for a location
with commutability and good schools, but it will be worth it in the long run. I
chose a beautiful two-family home in Bernardsville for the community offers
tenants the feel of neighborhood living with the ease of being within walking
distance of trains to NYC and a wonderful downtown area. I felt the area attracts
a higher caliber of renter with a lower turnover rate, which is also something
to consider. The home was easy to rent and the tenants have been there for many
years.”
His property at 54 Mt.
Airy Road is currently for sale through Broker Sales Associate Jacqueline Rossi
Greene of Coldwell Banker in Mendham. It is priced at $499,000 and features a
three bedroom, two bath lower unit, a two bedroom, one bath upper unit, six off
street parking spots, a detached garage and upgraded electric, HVAC, windows
and roof.
David O’Connell,
principal of JMOC Builders, a renowned residential development and remodeling
firm, determined an up-and-coming urban location was key for a new apartment
building. He chose Morristown, one of the hottest new addresses on the NYC direct
train line due to its proximity to the train station, easy accessibility to
major highways for commuters, and its many lifestyle amenities including
shopping, dining, entertainment and everyday needs all within walking distance
of the Green.. “My partners and I wanted to invest in an emerging area that was
already established but not as pricey as NYC or Hoboken. Our apartment complex
on the corner of Ridgedale and Lafayette in a matter of months is almost leased
up. It’s a stepping stone for us to invest in new properties.” Only eight
remain with rents at Morristown Gateway starting from $2,750 for two bedrooms,
two full baths and two free parking spots.
Jerry Sahlman, of Lofts
at Morristown, agrees, “Our team is going forward with an apartment complex
also in Morristown. We chose a renovation project to turn an older brick
building into a chic new collection of Soho style loft apts. Our ‘MoHo’ design
will include soaring 12 foot ceilings, spiral staircases to upper bedroom
lofts, walls of windows, balconies, on-site gym and parking.” A VIP list for
the new 30 unit building offering one-bedroom and two-bedroom units, many with the
bedroom lofts, is now forming through Rossi Greene of Coldwell Banker in
Mendham.
Once a location has
been determined, O’Donnell suggests looking beyond the decorating and cosmetic
items of the property and consider its “guts.” He explains, “Unlike a primary residence where
you can take your time to fix things, when you have tenants, it has to be fixed
right away. That is why it’s important to consider the major components such as
the overall structure, HVAC, electric, roof, windows and plumbing. If these are
not up-to-date, I suggest planning ahead for these improvements as soon as you
can. A fix as it breaks strategy can become more expense and cost you your
tenants.”
When
it comes to the finances, Senior Loan Officer Phyllis Byrne (NMLS#203821) of
Coldwell Banker Home Loans explains determining what one can afford upfront is very
important. “While many investors usually have an amount in mind, getting
prequalified helps you set your limits, make the best decision and be ready to
make an offer quickly,” she states. “Investors have more buying power today due
to the low interest rates. It’s just as easy to get a mortgage on an investment
property as on a primary one.”
O’Donnell
further explains there are tax advantages to owning an investment property.
“Many investors overlook this and think they just want to make money and a
return on the investment. But as you pay down the mortgage and put improvements
into the property, there are tax savings.”
Rossi Greene adds
knowledge of the local markets and current home values is essential to find the
right investment property. “We do a lot of research to help our clients select the
perfect investment property to suit their needs. We look at under value deals
in up-and-coming markets. We not only determine the value of the property
today, but look at past activities and trends to try to get the most value. We
found areas like Morristown and Bernardsville, where infrastructures such as
train service to NYC are in place, offer a lot of potential for the prices are
lower than comparable properties further east. Coupled with low interest rates,
this creates a great scenario for serious investors.”
Once
a property has been selected, marketing it to prospective renters or buyers is
paramount to get the best return on the investment. Sales Associate Pamela
Golgolab of Coldwell Banker in Mendham explains, “We put together a
comprehensive and targeted marketing strategy to reach not only renters or
buyers but also Brokers across all media. Our strategies have resulted in
properties renting or selling in record time and at the most competitive
prices.”
For additional
information on buying or selling investment properties, please contact Broker
Sales Associate Jacqueline Rossi Greene of Coldwell Banker in Mendham on cell
(732) 887-8538 via email jackiegreene1@gmail.com, or in the office at (973)
543-3912, or Pamela Golgolab also of Coldwell Banker in Mendham on cell at
(908)625-1929, via email pamela.golgolab@cbmoves.com, or in the office at (973)
543-2552. Or visit www.ColdwellBankerHomes.com.
Coldwell
Banker Residential Brokerage in New Jersey and Rockland County,
New York, a leading residential real estate brokerage company, operates 55
offices with more than 3,100 sales associates serving all communities from
Rockland County, N.Y. to Monmouth County, New Jersey. Coldwell Banker
Residential Brokerage in New Jersey and Rockland County, N.Y. is part of NRT LLC,
the nation’s largest residential real estate brokerage company. Visit www.coldwellbankerhomes.com/ for more
information.