I have a list of questions to ask the realtor, but I'm curious on if theres any good ones you guys know of that I can write down that I might not of thought of because of me newbie experience. This location is an investment in a prestigious town located 1 block from downtown, 2 blocks from a train that goes directly into NYC, and 5 blocks from one of the top hospitals in NJ. Its a penthouse style unit with 2 bedrooms, 1 bath - around 1,000sq ft.
Also, how do you guys feel about there not possibly having garage space available, and no elevator? (located on top floor, floor 4).
Twenty, you've seen the TV shows - there are plusses and minuses in every property. Thumbs up or thumbs down.
If the realtor is representing the seller, they are concerned with getting top dollar for their seller and is going to point out all the plusses while downplaying the minuses. If the realtor is a buyer's (your) agent, then they can help you do the due diligence that's needed. You also want to know what the market rents are in the area and if possible, how many people are looking to rent in the area.
You definitely want to know how long the unit has been on the market as that will give you an indication of how long it may take you to rent the place out. If other similar properties are moving more quickly and yours has been sitting there for months, then no matter how great the location, you may want to pass on this unit and look for another one with better amenities in the same area.
High end properties can bring a nice return. If you really like the place for yourself or for a potential rental, you may want to come back to the building alone and talk to the neighbors. Ask them what drew them to the place and if not having a garage or elevator is a hassle (think moving in time and carrying a refrigerator up 4-flights of stairs, having company over, your 80-year old mother comes to visit, etc.).
Your location sounds great. You may also want to do your own comps (here again I don't know if your realtor is seller or buyer agent). You can usually find recent sales at the assessors office, many of which are now online.
If you have a local REI club in your area, I would seek out another investor and ask them to coach you through the deal.
With such a high price tag, you definitely want to be careful, however it could end up being one of those "smokin" deals!