Questions about ENY

[Bin Chen]

Hi all,

I have seen a couple posts about how ENY is a hot neighborhood right now for investing. After doing an initial scan I've noticed there are a couple properties that are listed a bit above 200k while similar houses are listed for 500-600k. In the description it states that the properties are being short sold and there are non paying squatters in the houses. So this has lead me to a couple of questions.

There seems to be a ton of listing in ENY for extremely cheap compared to the rest of NYC. Why do people speculate that prices will go up?

There seems to be a couple of houses with non paying tenants, wouldn't that make the neighborhood high risk?  The neighborhood right now doesn't seem to be very nice so attracting good tenants will be a struggle.

Even if you have to evict the tenants and gut renovate the property, wouldn't it cost less than the 300k difference in price? 

Is the speculation for ENY only geared towards certain sub areas of ENY?

Thank you in advance for your insight.

[James Northrup]

The buzz about ENY and Cypress Hills has a few factors: (1) Fulton, Atlantic, and Pitkin Ave were recently rezoned to allow for more density, (2) rising prices in the adjacent areas: Bushwick, Bed Stuy, and Crown Heights, and (3) the popularity of the L, A and J trains.

Crime is very high in certain parts of ENY, but very low in others.  It's a big area.  Do your research.

Our tenants in Cypress Hills are very good.  Always pay their rent, keep the apartment clean, turn off any music by 10 pm, etc.

There is a lot of renovation being done in the area (flips), but prices are still drastically lower than Bushwick, Bed Stuy and Crown Heights.  The next wave I'm expecting is a boost in commercial properties.  There a lot of vacant store fronts and no coffee shops(yet).