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Updated over 3 years ago, 07/12/2021
Hudson Valley market
Hi all
Does anyone have experience of multifamily buy and hold in the hudson valley area. Say from Beacon/Newburgh up to Saugerties. Would welcome thoughts on capital appreciation, cashflow and prospects for growth in the area
Frank Gucciardo thanks for the heads up. I've heard that from some of the people I've spoken to about doing work.
Speaking with the building Dept is a good idea. Usually I stop down to the building inspector before I put an offer in. On this house I happened to have the offer in before I'd even seen the inside of the house bc there was very limited time to get in.
But I did get to the building Dept first on this one. It had a pretty good list of violations which helped me when putting the offer in. Most of them were silly stuff like paint windows and trim, restore down spouts that kind of stuff. And a lot of them were very old, which again helps me the buyer as long as you can do the work.
I did notice that the building Dept has a fee schedule for most work. It's very detailed. That's pretty unusual to me, but nothing too high that I noticed. I'm wondering if they plan to hit me for more money in the HVAC permits. In westchester it goes by the town I think my last permit was 600 btw plumber and HVAC. The fee they have listed is 10.00 fee per fixture. And the other thing that stood out was there isn't a contractors license in Dutchess county. Just proper insurance. That opens up a lot who I can use for work. Looking forward to closing!
I saw the city of Poughkeepsie tax Lien sale is set up for 12/14. Anyone on this thread have experience with buying from the city?
@John Hickey I'd be fascinated to hear how your SF rehab project goes. Keep us posted!
I would hold off on Marist student housing for now; Fox Run @ Fulton is building their phase 2 and will be leasing summer 2017; not sure how many more beds with this project.
I do noticed on CL that houses that used to charge Marist students average $700 per room not including utilities; these days I am seeing $500 all inclusive. Pressure is on.
Cynthia Ng good info!
Moshe H. The house was on Albany street. I was buying a 900sf house for 8500. The house had been sold at a lien sale a few years ago. Its still
a possibility but I'm going to pass. The house needs about 50k in work. I like projects and it would have been a good one for my guys.
Here is the problem. The city had given the seller a quit claim deed and that's all they were giving to me. After a title search and 3 months dealing with the legal Dept could not produce documents on the foreclosure that the title co required to write a policy. The main thing I heard was wait for the paperwork it's coming. But that was for three months. To them this was normal.
This was after they told me they were desperate to rehab up 500 vacant properties in the city.
I could stick it out and wait for them but I took a look a few miles north and decided to let them hang onto the vacants a bit longer. They don't get any better with time.
It was exasperating but caused me to cook my heels. I found a few towns a little further north that I like more right now. I looked at houses last week and I'm looking again Thursday in Kingston. Headed to the auction Thursday am. Anyone up for coffee?
@John Hickey thanks for the update. Just looked at the area, right by the river, nice! Too bad the city is dragging its feet. If they're serious about revitalizing their blighted properties they had better get their act in order.
Good luck at the auction!
Thank you John for info about Kingston; whats your thought about Highland?
I'm up for coffee!
John, I'm planning on going to an auction at ulster county building on Thursday; can't remember what time that one is. Let's do coffee afterward. Got time?
I'm just moving over from Connecticut and am looking hard at Kingston, particularly for flips, but always looking for buy and hold too. I'm seeing some good potential, but I need to get more established there to learn the market and find the deals i think. I have a good Realtor, but the MLS deals are not that great, surprise surprise! So I'm starting to mail and am going to the auctions, but have not purchased at an auction yet, so it will be a learning curve for me. AND I haven't bought anything in NY yet, so that might be a learning curve too! Taxes are frkn scary for sure! Not used to those kind of tax numbers.
I looked up at Troy, and I really like the potential there, but it's pretty far to go for flips (for me). And I'll bet Albany has tons of stuff, especially for buy and hold. Seems perfect, with a solid economy and lots of inventory. I really want to make Kingston work, but am trying hard to learn the market valuations so I know a good deal when i see one. The margins are a little tight, but with good estimating and good contractors I think it could be good.
People talk about Newburgh as a war zone, but it seems like beacon was that way at some point, no? Anyone think it will gentrify enough for people to feel safe there? It sounds like good potential there if you feign ignorance and go for it? I hate when my tools get stolen...
@AlanBrown is right about MLS. Good deals often get multiple offers and price gets driven up - though I've seen good deals missed because repairs were over estimated.
Hello Everyone,
I am new to this area and I am looking to connect with other investors. Please PM if you would like to share contacts.
Thanks
Hi @Mahmoud Amin, welcome to BiggerPockets! One great way to get more contacts and grow your network is to jump in on the forums, ask questions and contribute your knowledge. Fill out your profile, get people to notice you, and they will often want to continue a conversation through private messaging, email or phone.
Best of luck to you.
Alan Brown
10 am sound right?
See you there.
http://ny.mypublicnotices.com/PublicNotice.asp?Page=PublicNoticePrint&AdID=4267476
I've been interested in investing in the Poughkeepsie market for a little while, especially since I travel up that way for work a bit sometimes. Right now, I'm doing some research to see which market I want to begin in. I was a little disappointed to see that the population hasn't really grown in the Poughkeepsie area and that the job market/economy seemed a little down. I was happy to see the City Center Revitalization Plan when I checked out the city website, but noticed there was no time frame mentioned.
Have any of you ever heard anything more about it through the grape vine? @Aaron K. @John Hickey have you purchased anything in Poughkeepsie since your last post here?
I was interested in the Newburgh area as well, but was literally too terrified to step out of my car once I got there :( I keep hearing it's a city on the come up though.
Chantal Jones thanks for bumping this thread! That made me remember when Alan Brown and I did meet up at that auction. Need to keep in touch. We made a good team.
I’m the wrong person to ask about Poughkeepsie. It’s not for me....now. I looked there and Newburgh and you know how that went! I’m all about Newburgh. I do plan on investing in Poughkeepsie one day. Just not yet.
I’m sure there is money to be made. I just love newburgh.
As far as getting out of the car....i felt that way once too. Now I’m comfortable on most blocks. I buy in the blocks no one wants...buy your ice in the winter right?
Anyway next time you come up DM me we can meet up. My office is on broadway at Lutheran. Did you goto blacc vanilla? That used to be a bad block. Now it’s like liberty. Thanks to a few folks digging in and saying we’re going to turn this around.
I rented every commercial space I had at Breyer Ryan my projections. Residential is tougher. That’s a tough tenant pool. Can you don owner occupy and buy from the city? A few times a year they have houses with minimal work at awesome prices. Like 16 lutheran 25/27 benkard 170 renwick. All awesome deals. Check the city website. Just lean toward the ones with a CO. The vacant shells are a handful. Worthy of fixing long term but they are doozy.
I own in both Beacon and Newburgh. Newburgh is starting to see some carry over from tenants getting priced out of Beacon. Beacon is a great market to be in (which is why cap rates are so low and cash buyers are plentiful) but I see much more value in properly chosen areas of Newburgh. The city owned property list in Newburgh still has gut reno properties, but there are fewer now than 3-4 years ago. I’ve heard of investors in both Beacon and Newburgh having success with making offers on off market properties.
John Hickey wen is the next meet up? The weather messed me up. I need to make the next. Need the network
John Hickey u know any homes now for 10k in the area ?
@Charles Adams the city has some houses that are less than 10k. I wouldn’t say it’s impossible to find one. I bought a house last May for 16k. At those prices the house most likely needs a gut Reno and they could run 50k per unit or more. So at the end your 10k house if a 2 family will cost more like 125k with holding and closing costs.
Over the summer the market has gotten a bit more expensive and I expect that will continued for a bit. The city houses especially need a lot of work. My guy renos at 50k per unit don’t include structural work and new roofs. Much of the city stuff is missing roofs, joists, beams and needs substantial brick work.
If they have a house for 10k the Reno will likely be 150-200k for 2 units.
Newburgh February meetup details......all welcome.
Newburgh New York Real Estate Investors AM meetup on the BiggerPockets forums http://www.bigger-pockets.com/forums/521/topics/53...
@Frank Gucciardo OMG frank. Just saw a reminder I set for this thread.
I do that. Helps keep me on the point of responsibility with my predictions.
You don’t wont believe what I just sold a property for in newburgh.
I know we had numerous conversations on various threads about newburgh.
Not this one but I knew what you thought about the Burgh at that point.
This was the worst building in a bad area. Appreciation is a thing now in the HV.
Not anymore. Now there are hipsters selling vegan cat food on the block.....frank I hate to say it but......
@John Hickey
I had an epiphany a few months back. Newburgh certainly had/has the potential and sounds like it’s starting to realize that potential.
My problem was that I was not prepared mentally, team wise, or time wise, to do what needed to be done to turn around a place like Newburgh. Newburgh goes way beyond involved investing, it’s hyper involved investing.
I will say, I am getting tons of people looking to rent on the periphery and things are really good from that perspective.
I may not have hit the huge gains from being directly in Newburgh but I am getting the lift.
Glad to hear it’s going well. We should grab a coffee one day soon.
@Frank Gucciardo I know I know....we talked about it. I got lucky. Good timing. But it was a big risk... I do think that it’s high right now. But I also think that in another 30 years it will be a lot higher.
Anyone know happened to John Hickey? Is he OK? I followed his posts closely, I'm a bit worried- it appears he closed his account.
Strange happenings here... I just noticed that the large Newburgh thread has been deleted... whats going on?
Is it possible that the value of Newburgh was pumped up and now investors are left holding the bag? I don't know, just speculating on what I see.
I've seen some landlords asking NYC level rents for 2 bed apartments, just to recoup their money in Newburgh, and getting laughed off of Facebook.
Glad I didn't throw money into that pit of despair
And for good measure - the government is populated by commie thugs
https://midhudsonnews.com/2020/02/21/newburgh-city-councilman-at-large-goes-off-on-police-officers-during-traffic-stop-watch-body-cam-video/
@Frank Gucciardo. I am not sure, but the values got outrageous very quickly. Very high end rehabs were being done with “city money” and it was nice to see, but it didn’t make much sense. NYC is close enough to be able to stop by Newburgh and see that that it ISN’T the next Beacon. Kingston has a better shot than most, but no Metro North is a big hindrance. IMO Poughkeepsie should have a fair shot, but it is also outrageously priced at the moment. There is a lot of money floating around and I think that is driving these outrageous valuations adding in the unfavorable landlord tenant laws and I don’t see many opportunities in the area for the time being.