New York rental properties can yield very lucrative returns for commercial real estate investors. However, most properties are not “turn key” and ready to generate revenue immediately after purchase. New York fix and hold property strategies can end up generating more revenue after renovations and expansions are complete.
Why Use Fix and Hold?
There are a number of reasons why commercial real estate investors use fix and hold property strategies. The most popular reason is that investors are keen on acquiring properties in New York and repurposing them. NYC is full of historical properties which are not being used for their initial purpose and would serve better as office space, a restaurant, an art gallery, or apartments. Instead of immediately announcing the property is ready for tenants, or trying to flip it for a profit, investors are sitting on the property and making the necessary renovations, thus building interest in the property’s future use.
Watching the Market
Other investors pay close attention to the property markets in New York. A property might be a very affordable acquisition, but the immediate area may not be ideal for renting it out immediately. Some areas in NYC are undergoing a facelift to bring in new businesses and residents. Using a fix and hold strategy to wait until the surrounding area is ready is a smart move. This gives local investors time to see exactly what type of people are coming into an area, and figure out rental prices accordingly. Waiting also gives investors the ability to renovate with an expanded timeline, so that nothing is rushed.
Conversions for Existing Properties
Some New York City property investors already have commercial real estate in their portfolios. If those properties are currently not generating revenue, they may want to use a fix and hold loan to convert them into rentals. Since fix and loans are partly structured around the post-renovation cash flow potential, securing the capital necessary to make the property market-ready is very easy. Investors are using this fix and hold strategy with residential apartments, townhomes, and even larger properties designated for commercial use.
Learn More about NY Fix and Hold Loans
Express Capital Financing offers a wide range of strategies and solutions for New York property investors. If you are considering a fix and hold strategy, contact our offices. We will work with you directly to create a solution to help you reach your goals and start generating revenue from your properties.