This section is from the book "Practical Real Estate Methods For Broker, Operator & Owner", by Thirty Experts. Also available from Amazon: Practical Real Estate Methods for Broker, Operator, Owner.
When I am asked at my office how I advise people to invest in real estate in the Bronx, I invariably give one answer, "Buy, if you can afford it, on the leading avenues, and in the business centers if it is possible. Get something, if you can, with a building on it, to help carry the property along. Experience has shown that these business centers become more valuable as population increases."Business centers vary in what I call the density of their population and, in this connection, I want to state also one reason why values are higher right here to-day and will be still higher in the future than in the other boroughs, leaving out Manhattan. Take a block 600 feet long and 200 feet wide, the average block in one of the prettiest sections of Brooklyn, the Flatbush section. This is covered with very pretty two family houses, ten people to a house, each one standing on a forty-foot lot. These families will form a population of about three hundred people. I am not speaking of the esthetic side of the question at all. I don't say that what we do in the Bronx is the best thing for the physical comfort or for the morals of the population. Now, in the Bronx, in five-story apartment houses, with four families to a floor, there will be 3,000 people living on a plot of ground 200x600 feet in size as against 300 people living on the same sized Brooklyn block. These 3,000 people require stores in proportion. The thirty houses in Brooklyn, on an average of $40 a house, will produce $1,200 rental. In the Bronx, if the rooms rent only for an average of $3.50 or $4 a room, the total for the block will be $12,000. That is the reason that values in the Bronx are so much higher than in the other boroughs outside Manhattan, and always will be so, because the main factor is their density of population.
The density of population makes values and also makes business centers. If a person will look a little ahead and buy to-day at the junctions of great avenues or cross-town streets, he is bound to make money from his investment.