Best New York Markets for a Fix-and-Flip Loan

If you’re planning on investing in the New York real estate market, one of the most essential steps is identifying the neighborhoods primed for optimal return on investment. Normally, the best approach would be to seek out markets in which sales have lagged and new builds are available for below-market rates. However, with the advent of COVID-19, the market has evolved—forcing investors to adjust their strategy when it comes to making smart investment decisions as they must account for a myriad of new factors influencing market dynamics.

Following the shutdown last March, a significant percentage of would-be sellers chose to put their plans on hold, just when the normally active spring season would typically be picking up steam. This led to a subsequent nosedive in the number of listings throughout key markets like Manhattan, Brooklyn, Queens and the Bronx. Fortunately, the market has rebounded in a robust manner. Buyers’ preferences, however, have changed from the pre-pandemic era. Most notably, there is a marked increase in demand within markets outside the city—to include select areas in Brooklyn and Queens. Here’s a closer look at some of the best areas for investors to concentrate their property searches for the next profitable investment move.

Upper East Side & Yorkville

The Upper East Side is a particularly strong draw when it comes to first-time homebuyers. The neighborhood features tons of co-ops, which history has proven to be more resilient to economic fluctuations due to their inherently stringent application review protocol and liquidity prerequisites as opposed to areas dominated by condo developments such as Williamsburg where residents are typically over-leveraged from an objective standpoint. Investors should not the favorable relative value the Upper East Side has to offer in addition to its overall quality-of-life including sprawling green spaces, high-quality school systems, accessible public transportation, and a vibrant social scene. As an added bonus, the Second Avenue subway line has made areas like Yorkville more viable housing options for potential buyers—making it the ideal location for investors to concentrate on for the future. The Upper East Side collectively has long been undervalued as buyers generally desire to be closer to downtown, but the mass exodus from the city spurred by the pandemic and the new Q train—on top of the great upgradable apartment and single-family buildings in the neighborhood—makes it a promising option for savvy fix-and-flip investors looking to capitalize on an up-and-coming market.

Hudson Square

Don’t confuse this predominantly commercial sector with Hudson Yards—the mainstay of the housing inventory in this market is a unique blend of townhouses, converted tenements and newly-constructed condominiums. With Google’s move to the area, investors who are able to snag residential property in Hudson Square could easily make a handsome profit with the influx of employers and high-earning workers whose presence will quickly ramp up prices in the near future. When evaluating their approach, investors should be on the lookout for condos that still have time on their tax abatements or co-ops with less amenities that subsequently don’t carry high maintenance fees that could eat into their profit margin. A properly executed rehab of one of these properties could be a great way to get involved in a market that all indications point to is set to take off in the near future.

Bay Ridge

Boasting spacious residential streets and idyllic green spaces in every direction, the Bay Ridge neighborhood has a quasi-suburban feel while still being proximal enough to all of Manhattan’s key amenities. For years, the commute to downtown was a major deterrent for potential buyers in the area, but now the community has the benefit of a direct ferry service straight to Wall Street—making it the perfect place for fix-and-flip investors to purchase properties while the area is on the upswing and then profit from the projected exponential appreciation in home values.

Get Started Today

Express Capital Financing can get you the money you need when you need it to get your next fix-and-flip project up and running. With flexible terms and a streamlined application process, the Express team can help you achieve all of your real estate investment goals—contact us today to get started!