CASE STUDY 2: HOLLY PARKER
Started with $56,000 down payment.
Parker, having moved to Manhattan from Boston, calculates that unless the market drops 20 percent, it’s cheaper for her to own. She puts down 40 percent on a Tudor City one-bedroom priced at $140,000.
1999–2000: SELL/ BUY
A year and a half later, she sells it for $180,000, a modest profit, so she and her then-partner can trade up to a two-bedroom for $315,000. It’s still in Tudor City—“a C location,” she admits—but it’s far more salable than the first, with three exposures and views of the Chrysler Building.
Parker, sure that the market is still on its way up, rents out the place in Tudor City and buys a prewar condo loft on East 20th Street for $1.18 million. (Her reasoning: Prewar holds its value; condos are easy to unload.)
Parker tries to buy an apartment at 225 Fifth Avenue and is outbid—but she and her family buy another place in the building as an investment (her share: $52,000). Then the unit she wanted comes back on the market. She sells her other properties for $2.15 million to raise funds, and this time, she’s the high bidder.
TODAY: She’s still at 225 Fifth, and an apartment down the hall just sold for a per-square-foot price that suggests she could get $3.6 million.