All Forum Posts by: Carrie Zhang

@Carrie Zhang the Hudson Valley market has been and remains hot, with less inventory/higher rates. This is probably more of the issue (i.e. finding a sensible entry price) than deal size (solo or with a partner).

Yeah I need to get creative with finding off market leads. Very few on market transactions. If you know of anyone doing deals in the Hudson Valley I'd love to connect with them!

0 Votes

Upstate New York, New York

Quote from @Dan M.:

My two cents Id start smaller if your just trying to flip. The carrying costs on a larger property will be significant depending on where you buy. Alot of people are in the market for a 300k home , not many are looking for 900k but do your market research depending what area you choose. The hudson valley is a big area and taxes vary wildly.

Very good point! The carrying cost risk is definitely my main concern.

0 Votes

Upstate New York, New York

Quote from @Hamp Lee III:

Would your friend be willing to partner on a smaller project?

Consider where you will spend a majority of your real estate investing. You can make a large sum with the first option as is, but it will be outside of what you might learn for future projects, though there will be similarities.

If there are no changes. I’d go with option 2 as well.

I wish you all the best.

My friend is only interested in doing higher-end projects...

Upstate New York is an interesting market because you have a lot of people who are buying as their second home(or first and have their home base in a rental in the City) and that's where most of the appreciation has come from. The smaller projects are scooped up quite quickly and have a different end user (mostly local residents) from what i can tell. So I'm wondering if it would be a good idea to enter into the higher end bigger projects as my market, or is that too much risk for my first Flip project?

1 Vote

Upstate New York, New York

Quote from @Kiernan LaFaver:

Personally, I think choice 2 (the smaller project) is more ideal here. NY isn’t known for being “cheap”. Labor and material costs have increased greatly since the pandemic. Longer projects…higher labor costs. You would likely get a quicker turn around on the smaller project that appeals to a wider pool of buyers. Time is money and the less time your capital is tied up, the better. Especially in an unfamiliar market. Could you do multiple properties in the time it takes you to do the single larger project? Hope this helps!

That's what I have been thinking as well, faster turn around on my money is always preferred. Just have also been told that higher price point has less competition so curious how much that should impact my strategy.

0 Votes

Upstate New York, New York

Hi BP! I'm looking to do my first fix and flip deal in a new market, Upstate New York (Hudson Valley areas). I have rehab experience with SF long-term rentals in MI, but it has been a few years since I've been close to any construction. I think I have two options to get my first deal off the ground and would love your thoughts:

1. Partner with a friend to work on larger projects with greater upside (600-700K total cost with 900K+ ARV)
- They have been doing luxury value-add STR (but never a flip) in the higher end Hudson Valley markets since the pandemic
- There's likely less competition at that price point
- It may take us longer to find the deal and obviously a larger projects also likely means longer timeline. I'm at a greater disadvantage because my part of the funds has a higher financing cost

2. Start with a smaller project on my own (300-400 total cost with 450-500 ARV)

- I would need to learn new markets and manage the risk of rehab on my own (I can borrow my friends contractor so this may not be as bad of an issue)
- There's more competition at that price point
- I would be able to start and finish quicker (hopefully) and get actual flip experience under my belt

I'm currently casting a wide net for deals at both price points and I'm very eager to get started (I've committed to doing real estate full time). Would love to hear people's thoughts and if there are other considerations I should think about. Thanks!

P.S. Sorry about the confusing title - I tried to edit the post but couldn't change the title. I am originally also wanted to know, if total costs are the same, would people rather spend more on the purchase price or on the rehab?

2 Votes

Upstate New York, New York

Quote from @Alan F.:

Quote from @Benjamin Harrison:

Hello! I am a first time flipper and am using a self directed ROTH IRA to purchase the property. I have a house under contract and close at the end of this month. Does anyone recommend any insurance carriers for a "Builder's Risk" policy?

Thanks!

Many flippers have used NREIG as they're pretty large. Personally I've got a long standing relationship with an insurance broker that shops for me and provides excellent customer service. They're allegiance is to me, a carriers employees allegiance is to their employer.

That make sense. I don't have relationships with brokers and would be great to build that - is this somebody you are willing to refer?

0 Votes

Quad Cities, Illinois

Quote from @Benjamin Harrison:

Thanks!

Also very interested to hear what others are doing on this!

0 Votes

Quad Cities, Illinois

Hi i'm interested in fix and flip opportunities in the Hudson Valley but there have been very few transactions + the way the market fluctuated during covid has made it hard comp by just looking at zillow/realtor. I would really appreciate any helpful insight from fellow BP'er who have experience in the Hudson Valley areas, and I would also love to be connected to any wholesalers! Please feel free to DM me.

0 Votes

Upstate New York, New York

All Forum Posts by: Carrie Zhang

Carrie Zhang has started 4 posts and replied 18 times.

Post: Higher Purchase Price v. Higher Rehab Cost

Post: Higher Purchase Price v. Higher Rehab Cost

Post: Higher Purchase Price v. Higher Rehab Cost

Post: Higher Purchase Price v. Higher Rehab Cost

Post: Higher Purchase Price v. Higher Rehab Cost

Post: Insurance Recommendation for Flipper

Post: Insurance Recommendation for Flipper

Post: Looking to work with wholesalers in the Hudson Valley