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Updated almost 6 years ago, 01/03/2019

User Stats

1,466
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947
Votes
John Hickey
  • Rental Property Investor
  • Chappaqua, NY
947
Votes |
1,466
Posts

Westchester, New York House Hack/live in flip- John Hickey

John Hickey
  • Rental Property Investor
  • Chappaqua, NY
Posted

The Bought this house as short sale December 2009 for 350k.  3/1 1200sf Pleasantville NY

 Original Rehab was 80k.  We later finished the basement an addition for 100k.  Just sold for 675.  By then it was 3/2.5 1700sf

We were looking at buying a primary for a few months.  We saw this house on the first day.  Months later after looking at 30-40 houses we settled back on this one.  The price had dropped from 550-375 over a year.  When we first saw it the had it listed at 400k. We went back and forth with the bank and settled on 350 cash.  Three months to close.  

We did a full gut rehab, and after living there for 6 years moved to the next live in house hack.  More about that later.  Here's the after photos.  The photo above was about 2012, I never took before photos.  Lesson learned!

Another is to keep the end goal in mind...sell the house for the most money with the least  amount of work.  I spent a lot of money on this house that I didn't get back. Gut only when necessary, if you break it you have to put it back together and sometimes your better of leaving well enough alone.  

User Stats

92
Posts
24
Votes
Christian Reyes
Pro Member
  • Real Estate Agent
  • Garrison, NY
24
Votes |
92
Posts
Christian Reyes
Pro Member
  • Real Estate Agent
  • Garrison, NY
Replied

Hey @John Hickey

Good post and I think I know that house! I live very close by! I have been searching for investors in this area to bounce ideas with.

Personally, I think you did good. If you were house hacking while you forced some appreciation into the house and I know the neighborhood comps for upwards of $650k. So excellent work!

My question is in regards to expenses and closing costs. Pleasantville taxes are notoriously evil. Did you intend on flipping this property from the gitgo or were you going to buy and rent it out?

Did you use local contractors? If so, were they willing to go with you and give you an estimate prior to your offer?

  • Christian Reyes
  • User Stats

    1,466
    Posts
    947
    Votes
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    947
    Votes |
    1,466
    Posts
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    Replied

    @Christian Reyes 

    Thanks!

    when I bought the house taxes were 9000/7500 or so with star exemption.  Insurance 900 a year, utilities around 3k.  When I sold taxes were 16000/14800 with star.  Other costs around the same.  Closing costs were the transfer tax and 1500 to my lawyer.  

    Yes we planned on staying for a while.  Originally we were thinking  5 years.  

    We did a walk through with a contractor and he had given us a rough estimate.  We did some add ins but he was the closest to on budget I have ever seen.  

    You live in Pville? Nice town.  I did the one next door also. I'm going to put ipmmy current house hack soon just been busy lolkkg for the next one.  

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    User Stats

    60
    Posts
    11
    Votes
    Cynthia Ng
    • Real Estate Agent
    • Hopewell Junction, NY
    11
    Votes |
    60
    Posts
    Cynthia Ng
    • Real Estate Agent
    • Hopewell Junction, NY
    Replied

    Great job!  Very impressive

    John have you change your mind on Poughkeepsie??  

    User Stats

    5
    Posts
    0
    Votes
    Samuel M. Gonzalez
    • Lawyer/LEO
    • New York City, NY
    0
    Votes |
    5
    Posts
    Samuel M. Gonzalez
    • Lawyer/LEO
    • New York City, NY
    Replied

    Nice, house hack. We're putting up a 2br in Yorktown on the market next month, good to see Westchester investors on here, who says it can't be done in that market.

    User Stats

    1,466
    Posts
    947
    Votes
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    947
    Votes |
    1,466
    Posts
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    Replied

    Cynthia Ng in the short term I did. I had a few offers out and a contract that didn't work out- city hall was my main issue.

    I think the city is a good play long term. When I have more money to play with and it's not so important for me to see a quick turn around I might go back.

    Short term I think city hall is in the way.

    I would advise against buying anything that the city of poughkeepsie has foreclosed upon unless your sure you have done your DD on the title.

    They are offering quit claim deeds and they can't produce any paperwork to back up the procedure.

    User Stats

    60
    Posts
    11
    Votes
    Cynthia Ng
    • Real Estate Agent
    • Hopewell Junction, NY
    11
    Votes |
    60
    Posts
    Cynthia Ng
    • Real Estate Agent
    • Hopewell Junction, NY
    Replied

    @John Hickey 

    Thanks John for your insight, I'm eyeing this property on Albany Street in city Pok;

    its not a city hall foreclosed property; this one listed on Hubuz any difference?

    Im still learning this industry; its really interesting.

    FYI, I'm licensed Re agent if you interested viewing anything in dutchess feel free to reach out.

    Best

    Cynthia

    User Stats

    1,466
    Posts
    947
    Votes
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    947
    Votes |
    1,466
    Posts
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    Replied

    Cynthia Ng I can pass along the contact info for the property I was in contract on. 17 Albany. I had it at 8500.

    Needs about 50k in work.

    However it's the property the city couldn't provide documents on. They said they would do it eventually but I wasn't interested in waiting.

    User Stats

    60
    Posts
    11
    Votes
    Cynthia Ng
    • Real Estate Agent
    • Hopewell Junction, NY
    11
    Votes |
    60
    Posts
    Cynthia Ng
    • Real Estate Agent
    • Hopewell Junction, NY
    Replied

    @John Hickey

    Thanks for the info; I just look it up on the county website 

    All Kings Brokerage Inc bought it in 5/2014 for 6700 and its only 1 bedroom?

    User Stats

    1,466
    Posts
    947
    Votes
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    947
    Votes |
    1,466
    Posts
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    Replied

    Cynthia Ng yes. She'll pay the taxes at closing. Just want to get out. I have a letter fro. The city extending the deed restriction so they will lost likely give you one as well. Want the cell# ?

    User Stats

    60
    Posts
    11
    Votes
    Cynthia Ng
    • Real Estate Agent
    • Hopewell Junction, NY
    11
    Votes |
    60
    Posts
    Cynthia Ng
    • Real Estate Agent
    • Hopewell Junction, NY
    Replied

    @John Hickey 

    Thanks John, I will pass on this one 

    knowing how incompetent this county is I rather invest in something ready to go

    the one I'm looking at the bank wants 49500 and $38000 in renovations; it has a really good view of the river.  I'm buy and hold with Vassar Hospital, Marist expansion and tourism; it will be a good rental.

    User Stats

    26
    Posts
    13
    Votes
    Mike P.
    • Investor
    • Poughkeepsie, NY
    13
    Votes |
    26
    Posts
    Mike P.
    • Investor
    • Poughkeepsie, NY
    Replied

    Send me a private message - I live next to the Hubzu on on Albany St.  

    User Stats

    92
    Posts
    24
    Votes
    Christian Reyes
    Pro Member
    • Real Estate Agent
    • Garrison, NY
    24
    Votes |
    92
    Posts
    Christian Reyes
    Pro Member
    • Real Estate Agent
    • Garrison, NY
    Replied

    Thanks for the response @John Hickey if you happen to come across properties you feel I may be able to get a good CoC for after renovating, please let me know. Especially if the properties lare low taxes in Weschester and easy to commute from. I'd appreciate it!

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    User Stats

    1,466
    Posts
    947
    Votes
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    947
    Votes |
    1,466
    Posts
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    Replied

    Samuel M. Gonzalez thanks. Congrats on your project. If anyone says that hints are no good rents are down, prices are too high and tenants too much trouble I would think they might be scared of competition!

    User Stats

    1,466
    Posts
    947
    Votes
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    947
    Votes |
    1,466
    Posts
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    Replied

    Christian Reyes you can try using him. I think he'll be too busy for new clients. His co is called Ribeiro construction in Tarrytown.

    He's an awesome guy. Love his work. Totally dedicated to excellence. Maybe too much for flips. Probably better for dream homes.

    I was trying to get him to work on one of my projects 2-3 years ago and he was telling me he was too busy. I went to see what he was doing and he was building 1/2 dozen houses in a luxury development in Westchester. One house was 10,000sf

    I've been getting busier with houses and at this point I have a few guys full time. When I'm not doing work I loan them out. These guys did that brown house. Ribeiro did the yellow one. Depending on the work you need I might be able to recommend one of them.

    User Stats

    92
    Posts
    24
    Votes
    Christian Reyes
    Pro Member
    • Real Estate Agent
    • Garrison, NY
    24
    Votes |
    92
    Posts
    Christian Reyes
    Pro Member
    • Real Estate Agent
    • Garrison, NY
    Replied

    @John Hickey thanks a million. I'd definitely give them some work!

    Thanks again

  • Christian Reyes
  • User Stats

    15
    Posts
    2
    Votes
    Adam Celentano
    • New to Real Estate
    • Pleasantville, NY
    2
    Votes |
    15
    Posts
    Adam Celentano
    • New to Real Estate
    • Pleasantville, NY
    Replied

    @John Hickey: Hi John, in April of this year, I bought this house and live there with my wife and kids.  So far, we love it, thanks.  I stumbled upon this post while researching my first investment property, small world!  I just wanted to introduce myself, we should chat sometime, feel free to PM me.  Happy New Year!

    User Stats

    1,466
    Posts
    947
    Votes
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    947
    Votes |
    1,466
    Posts
    John Hickey
    • Rental Property Investor
    • Chappaqua, NY
    Replied

    @Adam Celentano small world! I pass by the block when I need to remember that renovations are tough but they can be completed. I still work full time and do a bit of the work. It’s no easier today than it was in 2009/2010.

    hope you enjoy the house it’s a good one.

    Problems you might want to know about:

    The buyer of the house Called me last year when we had a really long cold snap. She said the plumbing in the new addition had frozen. Think it was January. It had been less than10 degrees for days.

    That addition was completed in 2014. We lived there for a few years after that addition and never had frozen pipes. They lived there for two winters and only last winter was cold enough to cause a problem

    I do know that after the addition was complete on really cold days the floor would be very cold on bare feet near certain spots. Especially in kitchen by the stove and cabinets next to the stove. The crawl space was spray foamed to the umpteenth degree so it didn’t make a lot of sense to me, but it never got so bad that we needed to do anything.

    it sounds like there must be and air leak.

    I gave her a contractors # and explained what I thought they could do to figure out what’s going....open up the crawl space and figure out where the air is leaking. Or get a guy with a heat sensor to see what’s leaking. There is a hatch we sealed up, that would need to be open if your going from inside.

    But she didn’t call him to do the work so I’m not sure it was addressed. Dm if you want to ask any Qs.

    User Stats

    15
    Posts
    2
    Votes
    Adam Celentano
    • New to Real Estate
    • Pleasantville, NY
    2
    Votes |
    15
    Posts
    Adam Celentano
    • New to Real Estate
    • Pleasantville, NY
    Replied

    @John Hickey:  thanks so much for the insight, we will certainly keep an eye out and have it checked out if needed.  I will be in touch.  Yes it was not handled, and the neighbor (whom I believe you also flipped to) mentioned it to us as well.  I will definitely be in touch.