Hello BP, is there anyone that are buy and hold investors in Canarsie Brooklyn if so I wanted to know is it worth it to invest in this market?
@Algernon Brown Hey man, You seem like the kind of guy that has a $1Million in the war chest. GO FOR IT!!! but if your like the rest of America you will look at alternative markets to get started in. Good Luck man your gonna need it in that market!
@Shawn Ackerman why do you say that? I live 5 minutes from Canarsie. South Brooklyn has the cheapest Real Estate you can find in all of Brooklyn and could make sense for an investor. Unless there is something I dont know about the area? Bad tenants? Canarsie itself looks well maintained to me.
@Algernon Brown My colleagues who live in Canarsie spoke about certain areas being flood zones. As a newbie, I'm not sure if this will hinder you in anyway as an investor.
Thank you, I will do more research.
Hi Algernon. Just thought that I would comment. I'm a Brooklyn Investor for the last 20 years. I'm current holding properties in Ditmas Park, Clinton Hill, Windsor Terrace and Bed-Stuy.
The way I would like to put it is through real life examples.
In 2004, I bought a 4 Family Clinton Hill property for $1.2 Million. Renovated the building for $400k.
Around the same time, a student, his name is Marshall, bought a coop apartment in East Parchester, Bronx for $72k.
Fast forward to today.
The Clinton Hill property is now worth $2.5 Million conservatively. It also cashflows around $3k per month.
Marshall's property, however, did not recover from the Financial Crisis. It fell dramatically and today he cannot even sell it for more than $60k.
The contrast between these two real life scenarios is vast.
I made more than a Million, Marshall lost money.
Even within neighborhoods in NYC you will find different neighborhood economics and desirability, gentrification, etc.
The question should be where will Canarsie be in 10 years from now as opposed to the other neighborhoods you can possibly invest in.
Will you miss out on the opportunities that other neighborhoods are giving?
In Investing, we call that the Opportunity Cost.
Marshall quickly learned that painful lesson. I then sold him a small building in 2013 in Windsor Terrace for $675k. Today, it's worth about $1 Million. But again, his coop apt in East Parkchester did not do well at all even between 2013 and now.
A fundamental understanding of Future Value and the economics that drive it will help you to understand where to invest.
Canarsie may be more of a cashflow play... MAYBE.... but will you lose Opportunity in other neighborhoods that will give you a much larger return?
I've done this for 20 years. And yes, I have had great success. BUT even I have an Opportunity Cost when compared to other neighborhoods that I completely missed. I completely missed Williamsburg. If I would have bought there instead of the various neighborhoods I currently own, I may have doubled my net worth.
So every Investor has an Opportunity Cost if they can invest in a neighborhood, but for their own reasons, such as not receiving cashflow from the beginning, they invested elsewhere.
Hopefully I have given you food for thought.
Hey @Shai Neubauer thanks for responding to my comment. In your opinion what is the cost of entry for a duplex in the South Brooklyn area?
@Shawn Ackerman I think 2-families are in the 500-600k range but im more informed on the 3-4 families which are around 700-900k. I dont think you can get a 4-family anywhere in brooklyn for 800k besides for here. Am I correct or no?
Thank you guys for the great information
I lived in canarsie for 5 years. When Sandy happened my basement was flooded completely.
try looking into East New York. I bought a condo in 2013 for 150 today it goes for 230.
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