Will this apartment be possible to resell?

Question

Hi everyone,

I’m a first time home buyer trying to buy a home to live in but also something that I could either potentially rent out or sell in the near future (<10 yrs).

I’m currently considering this 400 sqft  studio condo in a new development in Brooklyn that’s priced at 650k. It seems to be a good price tag when compared to other similar studios in the neighbourhood. However, looking at the layout it seems to be not as functional and I find it difficult to make it work for myself. But looking at the attractive price point I wanted to consider it and see if it would be easy to rent/resell it. What is preventing me from buying it could be the same reason someone else would feel the reluctance to move forward with either renting or buying such a property. I’m coming here to understand how investors and homeowners think differently because may be an investor wouldn’t care as long as the numbers work. The only obstacle I see is getting someone to rent such a non-functional space.

Would like to learn from your experience and appreciate all the help!

Ecaterina Katerina Morosan · Answer

We would recommend going with more conservative numbers in this case. Average studio square footage in NYC is 450sqft. Anything that is smaller requires a lower than average rental price.

Also, looking at the floorplan, the architects could've swapped the WIC and the bathroom and move the entrance slightly to the left. It would be more practical and convenient. Based on my experience from working at a development consulting company in NYC, this is one of the first things we would point out to the developer. Curious what building this is.

Let us know if you need any help with a deeper analysis.

Best,

Katerina