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Old 02-05-2010, 08:43 AM
 
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For those who are not familiar with the Bronx or Manhattan, basically Manhattan is more expensive. I am thinking about buying a large building in the Bronx, or a small one in Manhattan to rent out. They would be both the same price, but the one in the Bronx is much bigger. I'd like to ask a general question as to which of the two would be a wiser choice.
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Old 02-05-2010, 09:02 AM
 
Location: Alaska & Florida
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It all depends on the location within each city and the current tenants. Typically, the more desirable the city and location, the less it will make BASED upon its asking price. If neither building has tenants, I wouldn't touch it in this market unless you plan on paying cash for it.
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Old 02-05-2010, 09:04 AM
 
Location: western East Roman Empire
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Not enough information, would need to know comparative initial buy price and capital investment, method of financing, start-up expenses, alternative investments, and, going forward, expected expenses and income, among other things (like intended use and tenant situation as mentioned above).

In the long-run, however, it probably boils down to expected capital gains. Chances are that, generally speaking, Manhattan will offer greater capital gains, but not necessarily so.

Nevertheless, other things being equal, it is probably better to have a smaller building in Manhattan because possibly easier to manage and a better chance of greater capital gains.

Good Luck!
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Old 02-05-2010, 02:08 PM
 
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Here are the locations. Both are urban areas in a major city. One is working class, blue collar, the other is white collar, and upper middle class. Obviously Manhattan is more desirable, but not everyone can afford it, which can limit your customers. This is why Walmart is the biggest money maker in America because it caters to everyone, not just a few rich people. The buildings both have tenants, and are full. I am paying cash for it. The price would be around $6 million. I also believe that the smaller building would be easier to manage, but if someone moves out, and the place stays empty, then I would lose more. What are the advantages and disadvantages of having working class tenants vs. white collared ones? Perhaps someone with more experience in this field can answer that question. What are the start up expense differences for a small vs. large building? Also, if I already own a large building in the Bronx, what's the advantage and disadvantage of selling it and buying a smaller building in Manhattan of an equal value?
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Old 02-10-2010, 02:06 PM
 
Location: Eastern Washington
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What kind of cash flow does each building generate? What about rental history, does one tend to stay full longer? What about average length of rental?

Which seller is more willing to "talk turkey"?

What about comparing the restrictions (which are probably many) on how the buildings can be used, modified, what rent you can charge?

I don't think you have enough information to choose between them yet.
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