All Forum Posts by: Andrew Jennings Freerks

@Marie Eisley I just sent you a message but give me a call. I just helped a friend of mine purchased a two family townhouse in the South Bronx as a primary residence with only 5% down.

Hello fellow BPers,

I want to share with you some interesting observations I have made about one of the quickest growing parts of New York City, for any of you looking to find the next "IT" market to invest in.  For the past several years I have been a licensed broker and active investor in the South Bronx, beginning about 9 years ago when I was first introduced to the South Bronx while working as an urban planner for the City of New York.  I have found the South Bronx market to be very, very interesting, as it is quickly transforming from a low income/ industrial neighborhood, to an upscale neighborhood complete with new parks, new transit options, and numerous 20+ story rental buildings.  It's a similar transformation to what happened in Long Island City 5 years ago, and Williamsburg 10 years ago.

Currently, there are over 4,000 new units being built in the neighborhood, all coming online in the next 3 years.  Almost all of those units are luxury units with market rate rents ( think 1 bedrooms renting for $2300+, and 2 bedrooms renting for $2700).  This is a HUGE change for a Census Tract that was one of the poorest in the nation, just a few year ago.  Every quarter I have been keeping track of the residential market trends, and I compile them into a market report for my clients and friends.  Now I want to share it with the BP family, as I really think this area of New York City is a fantastic appreciation play (8%+ growth YoY), with decent even cash flow.  I hope you enjoy the read :)

https://drive.google.com/file/...

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $199,000
Cash invested: $199,000

Historic 4 plex in prime Albany. 2 units are renovated, and 2 need renovation. Estimated renovation costs $80,000, with a total investment of $305,000. The properties have an ARV of $575,000 and we anticipate the project to take 6 months.

What made you interested in investing in this type of deal?

Historic home (one built in 1832 and the other in 1826) and the prime location, located steps from the capital, a major hospital and two universities.

How did you find this deal and how did you negotiate it?

A broker I found on BP

How did you finance this deal?

All cash and we will refinance on the back end

How did you add value to the deal?

Renovate two of the four units. New roof, decks, repaint/ repair facade.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jaime Brayton

@Ryan where is your property located? I have an eviction attorney I can recommend in the city. What type of asset is it (condo, coop, SFR, MF?)

@Joey Montefinese

I did my first house hack in the South Bronx (25 mins from Grand Central) with my fiancé. We looked at Astoria and other parts of the city but we're priced out and decided to at least get a piece of New York City versus continuing to wait or investing in other markets where we were not as comfortable. We purchased a two family townhouse for $775,000 and the rent roll more than covers our PITI plus we are seeing 8% appreciation year after year. Only had to put down 10% too! Happy to discuss more if you'd like. Just shoot me a message.

 Yes there is!  We are busy planning the next event for Wednesday April 6th.  Once Eric and I book the location, we'll let you and everyone else know.  Talk to you soon

@John Dersoe where is your property located in the Bronx?  I own here as well, and know certain areas are appreciating like crazy.  

This definitely seems like a great way to "drive for dollars" while you actually complete your own job.  Defintely give MGMT a call, and sign up for a service where you can find the owners contact information and try calling/ emailing/ texting them.  Have you gotten your preapproval/ purchase documents in order?  If you submit them an offer early on that will grab their attention and increase their chances of responding.  Just curious what areas of the Bronx do you usually cover?  I own a few investment properties in the South Bronx and have cash flowed very nicely

Ceasar do you hang signs on your property advertising your company?  I do that with all of my properties and have had success.  I get a couple calls a week from buyers, sellers and other neighbors.