Small investments can have major returns.
And I'm not just talking about investing in Apple in the 1980s (would've been nice!). I'm referring to real estate. Value can often be found when properties could use some minor cosmetic upgrades. To the average buyer, seeing an apartment that's not in pristine condition might be a turn off. However, to the savvy observer this is a money making opportunity.
Let's take a look at a 980 square foot warehouse loft in DUMBO, Brooklyn which we purchased in 2013.
Price Paid: $725,000
Here are the before pics:
The space looked amazing as is, but we wanted to spruce it up a bit. We put approximately $2,750 into a minor renovation, inclusive of labor and materials.
After we did the renovation, we moved in.
Here are the after pics:
Just a little bit of paint, a nice kitchen backsplash and some character and this loft was completely transformed.
Several months after after moving in, we decided to drop it back on the market.
Sales price: $965,000
In the short period of time that we owned this property, the real estate market in DUMBO had begun to heat up, so I would be naive to credit the entire price point appreciation on our touch ups and staging. However, I am confident that without these minor improvements, the sales price would have been significantly lower.
My takeaway from this project was the following: Look for diamonds in the rough. They're generally a good deal and can easily be polished up.
Blooming Sky specializes in New York City real estate investment opportunities. We help clients find and secure properties that match their investment criteria.