Real estate is a long game, sometimes renovations need to be, too

By Louise Phillips Forbes, Brown Harris Stevens

In today’s real estate market, the perfect property isn’t always move-in ready. 

Buyers who are able to recognize short-term opportunities and long-term potential will understand that the true value of a property often lies beneath its current condition. The key is to look beyond immediate challenges and focus on the long-term rewards. 

When taking on a renovation, it is important to differentiate between and then prioritize the must-dos and the would-be-nice-to-dos. Deciding this early on—and sticking with the plan—helps ensure that work is done efficiently and within budget, while still keeping an eye on the bigger picture. 

I experienced this firsthand in 1993 when I toured an apartment with a client. The property needed, well, everything, and the project was much more than my clients would consider taking on. But I saw a diamond in the rough. At the time, I was relatively new to New York City, single, and eager to establish roots in the city that I had quickly fallen in love with. 

Purchasing the apartment was the greatest gift I could have ever given myself—it was a testament to my independence and tangible recognition of my own self-worth. I staged the renovation over the course of several years, with each item checked off the list reinforcing the rewards of patience, perseverance, and sweat equity. The apartment not only became my home, but it also became the foundation for my future. Years later, I met my husband, and as our family grew, we were fortunate enough to purchase the apartment upstairs, allowing us to expand and reimagine our space.

Whether you’re planning to complete the work all at once or tackle it in stages, it’s important to carefully select the right professionals—an architect, a general contractor, or a real estate agent—who share your vision and can help make sense of the moving pieces. 

It is also important to consider the cause and effect of factors like the cost of labor and materials that can change over time and how shifting construction codes, building policies, and governmental actions can impact the overall scope. For example, in 2019, I helped a client renovate a 2,700 square foot investment property for a cost of $430,000. Fast forward to this fall, the client completed the same exact renovation for $815,000.

Renovating a home can be incredibly rewarding, but it requires careful planning, strategic decision-making, and the ability to adapt to an ever-changing market. With the right mindset and the right team of professionals, a property that may appear to be a fixer-upper today can evolve into the home of your dreams tomorrow.

Louise Phillips Forbes is a top producing agent at Brown Harris Stevens and a 34-year industry leader with nearly $6 billion in sales and a list of awards to her credit.

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How to Make Your Income Go Further in NYC

Everybody seems to have at least an inkling of a dream to move to the city that never sleeps, and why wouldn’t you? There are so many amazing things about New York that can make it feel like home — or the best adventure you can take. 

However, it’s no secret that NYC is one of the most expensive cities to live in the United States, rivaled only by San Francisco. The Big Apple is one of the priciest places you can choose, but still, it has a sense of magic that keeps people coming — and staying.

While you may find a gem of an apartment, a coffee shop with the cheapest lattes and a bar where you can worry a bit less about the tab, that won’t always be the case. If you’re looking for overall tips to stretch your dollars in NYC, here are a few things you can remember — whether you’re a newbie or a local.

1. Can You Afford the “Trendy” Neighborhood?

Yes, we’re looking at you, Williamsburg, Dumbo, Chelsea, Tribeca and any of the other trendy places you can think of. There’s a chance you can find a gem in any of these neighborhoods, but you can also research less flashy areas where all kinds of people and communities exist. 

Maybe you go for Bushwick instead of Williamsburg — it may even lead to a more authentic experience. Plus, these less-trendy neighborhoods are seeing lots of new real estate options. Take the new construction of Denizen Bushwick, featuring over 900 apartments to house NYC residents who seek great design and comfortable living.

2. Remember the Cost of Living Adjustment

This is something people often forget about, but it’s important. If you move to New York and start working a job in the city, your paycheck will likely increase due to the cost of living adjustment. 

When your taxable income increases, you may even make your way into a new tax bracket. However, this doesn’t necessarily mean lifestyle inflation, as the higher cost of living will keep you in check.

3. Kiss Your Car Goodbye

With the exception of very specific circumstances — which we’ll get to later — you don’t need a car in NYC. The subway is a part of the experience, so embrace it. You can always get a vehicle if you choose to leave the city someday.

4. Don’t Knock the Other Boroughs

You may be able to keep your car if you consider living in some other parts of the city. New York is called the Five Boroughs for a reason. You don’t necessarily need to write off Brooklyn, Queens, the Bronx and Staten Island. From stunning single-family homes to new luxury condos, boroughs like Queens have a lot to offer for a NYC resident.

The city has a lot to offer, and if you don’t mind a slightly longer commute, you can find much cheaper rent and still hop a train to the Upper East Side whenever you feel like it. 

5. Purchase Your Apartment if You Plan to Stick Around

If you want to stay in New York for a while, you can look into buying your apartment or condo instead of renting. It’s a lot less expensive than renting — plus, you’ll own property. While this option isn’t for everyone, it is something to think about.

You’ll need to prepare to purchase a property for the first time, getting your financials in order and making decisions about where and how you want to live. With a comfortable income and an aggressive plan, apartment ownership can be a reality for you, even in NYC.

6. Bring Snacks With You

Do you really need those chips or chocolates from the bodega? In a city where you can get anything at any time, having some almonds or crackers in your bag can save you from impulse snacking.

7. Drink at Home

Drinks in NYC can be gasp-worthy. Sometimes, it’s best not to bother. Instead, pregame with friends and have one drink out for the fun of it.

8. Find a Side Hustle

If you work from home or have a slow-paced job, getting a side hustle is a great way to bring in extra cash. From retail to barista jobs, the city has no shortage of open positions, so it’s the perfect time to jump right in.

9. Thrift in the ‘Burbs

If you love vintage, I’m sorry to tell you that New York actually isn’t the best place to find cheap threads. Even chain thrift shops often get marked up significantly in the city. If you’re itching to thrift, check out the local shops when you travel, visit your hometown or take a day trip Upstate.

10. Ditch Starbucks for Bodega Coffee

If you’re a coffee-on-the-go person, don’t bother with Starbucks or Dunkin. Support your local bodega and go for a more affordable cup of joe. This puts money back into your community and is easier on your wallet.

Doing the Most With Your Income in NYC

Living in NYC is expensive, but it’s far from impossible. When you learn little tips and tricks, you can save money on everything from drinks to rent — and you’ll be living like a local in no time at all.

About the Author:

Evelyn Long is a real estate writer and editor. She manages Renovated, a web magazine for renters, buyers and professionals. She’s also contributed to Rental Housing Journal, National Association of REALTORS®, and other online publications.

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How to Tenant-proof Your Investment Property

Are you worried that tenants could damage and destroy your new investment property? Tenant proofing ensures that you protect your property from damage. 

Not all tenants are bad. However, over time, damage can naturally occur. It is not always intentional or the tenants’ fault. If your tenant has children, household items can get damaged while they play in the house. Or maybe you own student housing rentals, which are known to have high maintenance costs from college students. 

Either way, you can use these actionable tips to tenant-proof your next investment property and save yourself money down the road. If you decide to sell your house in the future, these upgrades will even increase its value. Invest in your asset today, to give it a brighter future tomorrow.

Stronger Walls

The best way to protect your walls from dirt build-up is to use glossy paint or finish. It is a better alternative to water paints because it allows wiping without coming off which is the opposite of the former. It will initially cost you more compared to other painting alternatives, but in the end, it saves you money because you will not have to repaint every time a new tenant wants to move in.

Aside from painting, you can install door stoppers behind every door to prevent damage to specific points on your property walls resulting from the doors swinging open.

Lastly, let’s focus on the wall itself. If you are renovating this house before renting it out, consider putting it thinker drywall throughout the property. This will help prevent large dings and holes from occurring as easily. For student housing rentals, this is extremely helpful when tenant-proofing a home.

Upgrade Your Floors

When installing flooring, have in mind that spills from all kinds of liquids are unpreventable. Carpets typically don’t age well after multiple rounds of tenants. Aside from spills, scratches are hard to avoid as well. 

To prevent scratches and dings throughout your property, include in the rental agreement that all tenants should have felt pads on all furniture. If you include furniture as part of the rental deal with your tenants, this will help protect your items. You can note in the lease that tenants are responsible for any scratches and that repair costs will come from their deposit. You can direct them to shops that sell felt pads.

Windows and Blinds

Replacing windows can go a long way with tenants. Windows are used often, and can easily get damaged over time through active use. It will save you tons of time and money by not needing to repair windows often. Similarly, installing reliable blinds can help avoid damages made by tenants. Cheap blinds can get messy fast. Don’t skimp out when investing in these household items.

Conclusion

As much as wear and tear is inevitable with time, you can prolong the wellness of your property by implementing the above measures. Make it a habit to check your property every six months to ensure tenants are abiding by the lease agreement. Accountability and trust are two of the most difficult things to instill within a landlord-tenant relationship. By providing a quality place to live, you start things off on the right foot. 

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