All Forum Posts by: Frank Gucciardo

@Freddy Dai

Everything is priced really high right now but there are off market deals if you work hard enough.

I dont know the exact specifics for each of those locations but have lived in the area my whole life... here is what I'm seeing

Highland Falls - it's tiny.. very small.  and it's landlocked between the river and the mountains (it's basically built at the bottom of a 900 foot cliff).  I've not seen many deals come up there.

Saugerties - has had it's renaissance and is now flooded with NYC people.  deals could be found on the outskirts but I doubt you'll find anything that cash-flows downtown

Ellenville - could have some upside.. I'd look there but it does have high crime, so be wary.

Newburgh - it's a mess

Kingston - deals to be had

Poughkeepsie - deals to be had

good luck

@Michael Ghizzoni, My wife and I are in a similar boat.  We currently live and invest in upstate NY but selling our holdings and are seeking to invest in larger properties in SC.

I'll send you a friend request, would love to connect and discuss how you are making out so far.

Dan,  good talking to you the other day.  I'd definitely be interested in an OC specific meetup.

Eric He runs a really good one too.  Mostly focused on Dutchess but I think there are a few folks who invest in OC and UC.

Definitely take the time to define your criteria but don’t hesitate too long to jump in. 

I was In classic paralysis analysis mode for three years and missed out on some sweet deals.  When I finally pulled the trigger I realized that most of my fears of falling flat on my face were unfounded. 

Once I had the first deal under my belt I was itching for the next and next and next.  

As a matter of fact, I need my next project or I’ll go nuts doing only my day job. 

I stick to small multi family within 30min drive of my house.  NY is not great but I have good cash flow and forcing appreciation. 

@Aaron OCallahan

It's a good question.  I think Poughkeepsie is getting to be on the high-side of values as well.  Especially when you look at balancing the risks such as new NY Renter Laws, high taxes, and lack of business growth.

I think there is upside with the new hospital opening up soon, Marist adding a medical teaching program, easy access to metro north, favorable pro-growth government, etc..

I've run some #'s for Poughkeepsie and nothing seemed to cash-flow enough for the risk, however, I've not dug deep into off-market deals, which is where you are going to have to look.

I've pretty much given you a non-answer... I'm sure there is money to be made in and around Poughkeepsie but you will have to dig and work hard for it.

@Eric Hrlbock and @Matt Caven seem to be active in the area and there is a Facebook page for a local REI (I just found this when searching for Eric's name)

If you come up, I'd be interested in walking the area with any other investors out there.  I'm right across the Mid-Hudson bridge so it's a 2min drive for me.

Strange happenings here... I just noticed that the large Newburgh thread has been deleted... whats going on?

Is it possible that the value of Newburgh was pumped up and now investors are left holding the bag?  I don't know, just speculating on what I see.

I've seen some landlords asking NYC level rents for 2 bed apartments, just to recoup their money in Newburgh, and getting laughed off of Facebook.

Glad I didn't throw money into that pit of despair

And for good measure - the government is populated by commie thugs

https://midhudsonnews.com/2020/02/21/newburgh-city-councilman-at-large-goes-off-on-police-officers-during-traffic-stop-watch-body-cam-video/


 

@John Hickey

I had an epiphany a few months back. Newburgh certainly had/has the potential and sounds like it’s starting to realize that potential.

My problem was that I was not prepared mentally, team wise, or time wise, to do what needed to be done to turn around a place like Newburgh. Newburgh goes way beyond involved investing, it’s hyper involved investing.

I will say, I am getting tons of people looking to rent on the periphery and things are really good from that perspective.

I may not have hit the huge gains from being directly in Newburgh but I am getting the lift.

Glad to hear it’s going well. We should grab a coffee one day soon.

I’m not denying there was profit to be had in Newburgh.  The more I think about it, the more I realize that my real problem with Newburgh is that I don’t have the time or team to get my hands dirty and do all of the groundwork that is required of a turn around.  You need to be on top of things 24-7 and when you travel a lot for work that’s tough.

Different investing styles, but I’m comfortable with placing my money around the perimeter of Newburgh.  I’m still getting some of the uplift, maybe not the dramatic returns that very early Newburgh buyers did though. 

@John 

@John Hickey, I’m always curious if the rents are keeping pace with the cost to renovate.  Are people starting to move in and increase the rent base?

Price controls are NEVER a good thing.  See Venezuela as exhibit one.

I have a feeling you over improved for that area.  The interior work looks great but it’s too upscale for that house and the houses in the area. 

Is the Airbnb market in PJ really that strong?  

Who is staying in PJ for a week in the summer?

Also, you will likely not rent that out in the winter.  People want to go to the mountains not the flats of Orange County. 

In the winter you will have to either heat it or winterize it which is going to cost you.

Are you able to develop any of those 15ac to salvage the deal?