Apartment hunting can be fun—visualizing yourself enjoying your oatmeal each morning at the granite breakfast bar, imaging where exactly you’d put the couch—but finding a new place to live is as much about number-crunching as is it about going to open houses. RealtyHop—the new sales-focused website from the brains behind RentHop—aims to help you figure out whether an apartment will be a good investment or anything but.
In addition to traditional listings details and photos, RealtyHop offers each property’s estimated investment potential (should you ever want to rent it out). This cap rate signifies the annual operating profit—which is the estimated rental income minus yearly expenses and common charges, divided by the asking price. (The estimated rental income is based on the asking rents of comparable properties in the vicinity, assumes 100% occupancy, and doesn’t take into account things such as advertising, the cost of repairs, closing costs or sublet fees to be paid to the board). One caveat to keep in mind: this cap rate info is more useful if you’re searching for a condo since few co-ops actually allow sublets, and you'll want to check a building's policies before planning out your future as a small-time landlord.
This week’s round-up includes a high-ceilinged Alphabet City co-op, a Hell’s Kitchen one-bedroom with a 368-square-foot terrace, and a Theater District studio with a private bedroom area. All have estimated cap rates between one and five percent, making them dependable investments, according to RealtyHop.
Just five minutes from Tompkins Square Park, this Alphabet City one-bedroom features high ceilings, wood floors, and a full kitchen with a Viking stove and a combination washer/dryer. The co-op building has a common garden and a bike room. Subletting is permitted after five years. Maintenance is $661 a month and the estimated cap rate is 4.98%.
Located in Hunters Point, Queens, this 833-square-foot one-bedroom features a stainless steel kitchen, oversized windows, oak floors and a full-sized dining alcove. The condo building has a part-time doorman, a fitness center, bike storage, a rooftop deck, cold storage for grocery deliveries, and a 15-year 421-A tax abatement that ends in 2023. Maintenance is $641 a month, taxes are $156 a month, and the estimated cap rate is 3.02%.
With 12-foot ceilings, this 869-square-foot Theater District condo feels more like an airy loft than a traditional studio. The apartment has white oak floors, multi-zone climate control, a washer/dryer, and even a private bedroom area. The full-service condo building has massage rooms, a fitness center, a dog run and a golf simulator. Monthly maintenance is $869, taxes are $516, and the estimated cap rate is 1.42%.
This loft-style 946-square-foot one-bedroom in Long Island City has 15-foot ceilings, wall-to-wall windows, a washer/dryer, an open-style kitchen with stainless steel appliances and an abundance of closets. Amenities in the condo building include a 24-hour doorman and concierge, a fitness center with a lap pool and a private massage room, a children’s playroom, a pool table and a common roof terrace. Maintenance is $711 a month, abated taxes are just $1 (!), and the estimated cap rate is 2.75%.
This 1,165-square-foot DUMBO condo is a bright and open loft-like space with beamed ceilings. The two-bedroom has hardwood floors, a stainless steel kitchen with an island, in-unit laundry, built-in shelves, and custom-engineered sound-attenuating windows. The luxury elevator building offers tons of amenities, including a full-time doorman and concierge, a live-in super, a fitness center, a garage and a roof deck. Monthly maintenance is $988, abated taxes are $32, and the estimated cap rate is 4.43%.
RealtyHop is a search engine for NYC apartment buyers looking for undervalued or great investment properties. RealtyHop listings include estimated investment potential in the form of a cap rate: a calculation derived from the annual operating profit divided by the purchase price.