All Forum Posts by: Justin S.

@Austin Tam, I just found a thread about this by your lender from a year ago. They follow Fannie and Freddie guidelines. 6 months to go off of the new appraised value like everyone else. Thanks anyway. 

@Austin Tam, you are the man. Thank you! I hope you are right! :) Appreciate it! 

@Louis Aller, If you do it right, there is money to be made. I underestimated the rents myself but the demand is there. There is no denying the city is hot and has an enormous amount of momentum. You can feel it as you walk around Liberty. They just opened up a Crossfit down by the brewery. All positive things going on it the city of Newburgh right now. If you take advantage of some of the programs that are out there right now, such as the tax exemption, you are basically banking on the city being in much better shape in 10 years from now then it is today. Im taking that bet. 

@Will McGuire good to know. Good luck 

@Sarah Hooff

@Will McGuire you want to do the Historic Exemption as you mentioned above. Does this property need a renovation or someone is flipping it? If it is the latter, I may be wrong, but I don't think you would qualify for the Historic Exemption. My understanding of it is that since you would be improving the property, and it would be worth more post renovation, that is where you would be saving. For example- Lets say a house is assessed at 100k, you buy it for 100k, and put in 100k. The home is now worth 200k... Instead of paying the full boat of taxes on the 200k, the city will keep the assessed amount at the 100k for the 1st 5 years, then increase 20% per year of the fully assessed value for the remaining 5 years. 

If you are buying someones flip, I would assume the taxes would triple. Unless they did the historic tax credit? Im not sure if this can be passed down to a new buyer or not. @Sarah Hooff may know who happens to be an excellent agent should you be in need of one. 

Good afternoon everyone, 

Does anyone know any lenders who do not require the 6 month seasoning period for a BRRRR in NY?

As long as you purchased right and made your money going in and don't go too nuts with the reno budget, I think you will be fine. Im sure you purchased the properties from the city for a song and a dance. Even at $800-$1000 per for a one bedroom, I think you'll do just fine. 

I have been searching online (Trulia, Zillow & Hotpads) and noticing the same. I am seeing renovated 2 bedrooms sitting on the market for $800 per month in the heights. I am becoming skeptical of what the true fair market rents are and what an influx of rentals is going to do to the market. There are a LOT of investors purchasing and renovating for buy and holds in the city of Newburgh right now. On one end you have more supply and less demand. The other is the improved desirability to be in the area with the opening of bars, restaurants and the spring market could balance out. This same scene is playing out in Brooklyn right now. They are building apartments everywhere. 2 years ago realtors would list rentals charging potential occupants 12%-15% of the yearly rent as their commission. That turned into one months rent very quickly. Now just about every rental on the market is no fee and rental prices are starting to come down.  It looks like a one bedroom is roughly $1300 in Beacon. 2bedroom is $1450-$1700. Although I am a big fan of Newburgh, I think it has a long way to go to achieve these kind of rents. I am basing my investments conservatively at $800 for a nicely redone 1 bedroom in a good area and $1000 for a 2 bedroom. I would not be surprised if I ended up getting slightly less. Time will tell... 

Hi Michael, please private message me.