Poughkeepsie multi families

[Brian Zaug]

I feel like I found a pretty good market and figured I'd share it to see if others agree.  I live in Lagrange, NY and I'm only 15 minutes from the small city of Poughkeepsie, NY.  IMO, this city has been slowly coming back to life.  The city has been updating all their parks as well as putting in a walk/bikeway that goes through the city and over the Hudson river into highland.  It's pretty awesome.  They have an ivy league college (vassar) as well as one of the best SUNY colleges in the state, Marist.  They are putting on a 500 million dollar addition to Vassar Hospital.  The waterfront is growing as we speak with new restaurants, and premium condo's.  Anyway, seems to me that the city is going in the right direction.  So onto multi families. 

I purchased two duplexes last year and they both have been performing really well.  I got them both for around 125K in a decent neiborhood, in decent condition (only took me about $3000 each to get them cleaned up and rent ready).  Anyway, I posted a rental listing on craigslist and received over 10 hits on it in the first day.  I screened and screened and found 4 tenants with no waiting or problems. Seems to be a good rental market.  The houses are almost exactly the same so I'll put down the numbers for one....

House has:

 2- 1000sqft, 3 bdrm units in average condition (laminate wood floors, older windows, small kitchens and baths)

-They rent for 1100 each (2200 total)

-They pay all utilities

-I put 25% down, so I owe 95K or so

-PITI Payments = $950 monthly (taxes are 4200)

-I pay garbage, sewer, water = $150 a month ish

So I pay 1100 monthly on this and it brings in 2200.  I always put 200 a month way towards maintenance  which leaves me with $900 per duplex. 

These houses pop up all the time on the MLS, craigslist and trulia. I'm just curious if others see this great market just as I do. Looking forward to hearing others thoughts and opinions on these numbers and this area.
Cheers!