Generally speaking the smaller the apartment the higher the return (percentage wise). The ratio of rental price to sales price tends to favor smaller apartments for investors. An 800 square foot one bedroom apartment will not rent for twice the price of a 400 square foot studio (all other things being equal). But it will probably sell for twice the price ($ per square foot being equal).
Monthly running costs tend to be linear, however. For example, maintenance charges for a 800 square foot apartment are usually twice that of a 400 square foot apartment, all things being equal (floor level, view, etc.).
Also, when you have a vacancy, it will be easier to rent a smaller apartment because there are more potential tenants for lesser priced apartments (smaller). Think of the rental market as a pyramid. The base of the pyramid consists of the lower priced units, the peak represents the most expensive (there's probably only a handful of people looking for that $50,000/month penthouse). The more potential renters for your apartment, the faster you could potentially fill the vacancy. Shorter vacancies, more rental revenue, higher ROI.
Mitchell Hall, asoociate Broker
The Corcoran Group
Any further information, feel free to call me at 917-378-9673 Vera at Manhattan-Spaces
Pros don't invest based primarily on casual observations, or decor, because if you buy and rent out real estate for a living, you can't just hope for the best or base your strategy on luck, and expect to make enough money to stay afloat. Hoping for good luck is gambling, not investing.
I analyze comparative investments for my buyer-clients and would be happy to help you, and to represent your interests as your agent. There's no charge for this service because the seller pays the brokerage commission on the sale, and agents in NYC readily share commissions. So feel free contact me, I can help you make an informed decision.
Lic RE Salesperson