Investing in Hudson Valley (Orange County + Surrounding) NY

Investing in Hudson Valley (Orange County + Surrounding) NY

Middletown, NY · Member since 2015 · 4 posts · 4 votes

Hey BP!  First forum post here.  I'm new to the investment world and trying to learn and grow as much as possible on the road to my first deal.  I live in Middletown, New York, and am interested in multi family buy and hold units in my area.  I grew up in Pine Bush, went to school in New Paltz, and now live just outside Middletown near Slate Hill.

I'd like to start my investing locally because I'm knowledgeable about the area and can be more involved in the process if it's close to home.  I've been reading various books about investing and have been looking around online at properties to familiarize myself with what's happening in the area.  My goal is to make my first purchase sometime in 2017.

I was hoping to get some feedback from anyone who might have knowledge/experience in the area, as far as what neighborhoods would be good to look into and which ones I might better avoid.  As far as I'm concerned, the closer the better, but I also understand that I shouldn't get tunnel vision.  I'm very familiar with Orange and most of Ulster & Sullivan counties, and a little across the river.

I have worked in construction most of my life so any type of repair work that needs doing is no problem, however I currently have a full time job in the city so my free time is limited.  I only say this if anyone has opinions one way or another on fixer uppers vs. "turn-key"

Any help/advice/input is greatly appreciated, like I said I'm trying to learn as much as I can to be able to make informed decisions along my investment journey.  Although I don't think I have a whole lot to offer right now, I would be glad to help other investors in any way possible, so feel free to ask if you need something.

Cheers!

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Real Estate Investor · New York City, NY · Member since 2015 · 21 posts · 9 votes
9y

@Jon W. The reason why Port Jervis has so many multi-family houses for sale is because the city is reverting them ALL back to single family houses. They are trying to cut down on the numbers of rentals and increase owner-occupied housing.  I was about to purchase a multi-family unit out there until I found out about this from the building inspector himself (he happened to be right outside the unit as I was going in to take a look at it).  The sellers are not disclosing this and trying to offload them on buyers that aren't aware of this.  Big shame because I was really interested in this particular unit, but after finding out I would need to spend close to 100K in order to make it a single it was just not worth it, especially since the town is not currently supporting the price at what I would have to sell it for in order to make a good return.  

@Anthony Ciani I would focus more on Middletown.  There's a lot of good opportunities out there.  Newburgh is not so bad if you know where to look.  Is all about what you want to do.  

Start by asking yourself this; Do you want to hold them as rental properties or do you want to flip them? 

Once you answer this question it will be much easier for you to decide what areas to look at.

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  • Investor · Matamoras, PA · Member since 2015 · 111 posts · 32 votes
    9y

    Orange county. If you're looking at the port jervis area. Be fully prepared for a possible eviction after taking possession of property. Add for it. There are lots of multi family properties for sale. Look into section 8 rentals it might work out better. 

  • Middletown, NY · Member since 2015 · 4 posts · 4 votes
    9y

    Jonathan, I have yet to hear much positive about Port Jervis to be honest, when you say there are lots for sale are you referring specifically to port or just the area in general?  From what I see the vast majority are in what I would consider less than favorable neighborhoods like port, Newburgh, Kingston...

    Thanks for the reply!

  • Real Estate Investor · New York City, NY · Member since 2015 · 21 posts · 9 votes
    9y

    @Jon W. The reason why Port Jervis has so many multi-family houses for sale is because the city is reverting them ALL back to single family houses. They are trying to cut down on the numbers of rentals and increase owner-occupied housing.  I was about to purchase a multi-family unit out there until I found out about this from the building inspector himself (he happened to be right outside the unit as I was going in to take a look at it).  The sellers are not disclosing this and trying to offload them on buyers that aren't aware of this.  Big shame because I was really interested in this particular unit, but after finding out I would need to spend close to 100K in order to make it a single it was just not worth it, especially since the town is not currently supporting the price at what I would have to sell it for in order to make a good return.  

    @Anthony Ciani I would focus more on Middletown.  There's a lot of good opportunities out there.  Newburgh is not so bad if you know where to look.  Is all about what you want to do.  

    Start by asking yourself this; Do you want to hold them as rental properties or do you want to flip them? 

    Once you answer this question it will be much easier for you to decide what areas to look at.

  • Middletown, NY · Member since 2015 · 4 posts · 4 votes
    9y

    @Freddy Evangelista thanks that's definitely good to know...  I'm interested in rental properties much more so than flips, at least for now because I don't have as much time to invest (if I were to get into flips I would probably try to do most of the work myself)  I certainly wouldn't mind Middletown either, I live about 5 minutes from downtown so it would be super convenient, just have to make sure all the homework gets done in advance.

  • Rental Property Investor · Ramapo, NY · Member since 2016 · 243 posts · 108 votes
    9y

    Hi @Anthony Ciani, welcome to BP! I have just started getting interested in Middletown as it's quite close to me and I like what I'm hearing about Orange County these days, but I'm really not familiar with the area... yet. I'm definitely following this thread.

  • Jericho, NY · Member since 2016 · 143 posts · 49 votes
    9y

    Hey Anthony, 

    Make sure to check out some of the articles and blog posts available here on BP.  You may find them very helpful in determining what to look out for. Feel free to reach out with any questions.  Ill try my best to help. 

    Good Luck !

  • Property Manager · Middletown, NY · Member since 2016 · 26 posts · 20 votes
    9y

    Hi Anthony, 

    I currently work in property management in the Hudson Valley area, and have a several properties in Middletown. 

    You can find good deals all over Middletown, though obviously depending on the area, will get you different type of tenants. Being that you grew up in the area, you'll know firsthand which streets people prefer to live in, and which they would like to avoid. 

    @Freddy Evangelista, in Middletown as well they're starting to enforce the original zoning. I was looking at many 2 family homes in the area, until I realized many of them are owner occupied. 

    In my experience, the 2 family market in Middletown is the sweet spot. Especially if you find two - three bedroom house. You will get a family as tenants, who are usually very good overall., and the maintenance is minimal compared to other properties. 

    @Anthony Ciani if you have any questions, don't hesitate to contact me. 

    Best of luck!

    @Freddy Evangelista

  • Rental Property Investor · Ramapo, NY · Member since 2016 · 243 posts · 108 votes
    9y

    @Account Closed, just to clarify, are you saying that houses that were converted to 2-family contrary to code are now being re-established as SF homes? And when you say 2-3 bedroom house, you mean the whole house or each side of a duplex?

    Thanks! :)

  • Property Manager · Middletown, NY · Member since 2016 · 26 posts · 20 votes
    9y
    Originally posted by @Moshe H.:

    @Account Closed, just to clarify, are you saying that houses that were converted to 2-family contrary to code are now being re-established as SF homes? And when you say 2-3 bedroom house, you mean the whole house or each side of a duplex?

    Thanks! :)

    I'm referring to 2-family homes that are zoned as owner occupied. Until now, you were able to rent out both sides without an issue, but now they're cracking down on that. 

    I have a 3-Family property which is zoned as 2-family non-owner occupied, they're making us turn it back into a 2-family. 

    I mean each unit is 3 bedrooms. 

  • Rental Property Investor · Ramapo, NY · Member since 2016 · 243 posts · 108 votes
    9y
    Originally posted by @Account Closed:
    I'm referring to 2-family homes that are zoned as owner occupied. Until now, you were able to rent out both sides without an issue, but now they're cracking down on that. 
    I have a 3-Family property which is zoned as 2-family non-owner occupied, they're making us turn it back into a 2-family. 
    I mean each unit is 3 bedrooms. 

     Ok, thanks for the clarification. So basically, it's a good market to find 2-families but you really have to be careful with the zoning before you buy to make sure it's not zoned as owner-occupied.

  • Real Estate Investor · Newburgh, NY · Member since 2016 · 48 posts · 23 votes
    9y

    I was looking at a 3 family in Middletown a few months ago. It was a foreclosure that had been unoccupied for a number of years. The CofO had expired but the Realtor said it would be no problem renewing it for all 3 units. After going to the city clerks office, I was informed that Middletown as a whole was taking older/expired CofO's and not allowing them to be renewed other than as SFR.

  • Middletown, NY · Member since 2015 · 4 posts · 4 votes
    9y

    Thanks for all the replies, good to know about the zoning changes.  Haven't been able to be too active the last few days with work but hoping to get back into it soon...

  • Rental Property Investor · Goshen, NY · Member since 2014 · 41 posts · 27 votes
    9y

    Hey @Anthony Ciani did you attend PBHS? If so I think I remember you! Anyways welcome to the forums, I'm looking to get started with a house hack somewhere in Orange County

  • Real Estate Agent · Garrison, NY · Member since 2016 · 92 posts · 24 votes
    9y

    Am I reading this correctly? Multi family properties in Middletown are being forced to downzone to single family residences?

  • Property Manager · Middletown, NY · Member since 2016 · 26 posts · 20 votes
    9y
    Originally posted by @Christian Reyes:

    Am I reading this correctly? Multi family properties in Middletown are being forced to downzone to single family residences?

    The city is enforcing the current zoning. So if your 3 family is only zoned for 2 family, they are forcing you to downsize it. Or if it's a zoned as single family, they won't let you have a multi family property there. 

  • Real Estate Agent · Garrison, NY · Member since 2016 · 92 posts · 24 votes
    9y

    Thanks so much @Account Closed. 

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