Poughkeepsie multi families

23 Replies

I feel like I found a pretty good market and figured I'd share it to see if others agree.  I live in Lagrange, NY and I'm only 15 minutes from the small city of Poughkeepsie, NY.  IMO, this city has been slowly coming back to life.  The city has been updating all their parks as well as putting in a walk/bikeway that goes through the city and over the Hudson river into highland.  It's pretty awesome.  They have an ivy league college (vassar) as well as one of the best SUNY colleges in the state, Marist.  They are putting on a 500 million dollar addition to Vassar Hospital.  The waterfront is growing as we speak with new restaurants, and premium condo's.  Anyway, seems to me that the city is going in the right direction.  So onto multi families. 

I purchased two duplexes last year and they both have been performing really well.  I got them both for around 125K in a decent neiborhood, in decent condition (only took me about $3000 each to get them cleaned up and rent ready).  Anyway, I posted a rental listing on craigslist and received over 10 hits on it in the first day.  I screened and screened and found 4 tenants with no waiting or problems. Seems to be a good rental market.  The houses are almost exactly the same so I'll put down the numbers for one....

House has:

 2- 1000sqft, 3 bdrm units in average condition (laminate wood floors, older windows, small kitchens and baths)

-They rent for 1100 each (2200 total)

-They pay all utilities

-I put 25% down, so I owe 95K or so

-PITI Payments = $950 monthly (taxes are 4200)

-I pay garbage, sewer, water = $150 a month ish

So I pay 1100 monthly on this and it brings in 2200.  I always put 200 a month way towards maintenance  which leaves me with $900 per duplex. 

These houses pop up all the time on the MLS, craigslist and trulia. I'm just curious if others see this great market just as I do. Looking forward to hearing others thoughts and opinions on these numbers and this area.
Cheers!

Hi Brian, 

I'm in the process of purchasing my first property in Poughkeepsie. It's a duplex as well, very similar to yours.  I checked out the city and I agree that it's a great location with lots of great development in the works.  I'm super excited to grow my portfolio in Poughkeepsie.  Congrats on having two great deals!

-maritza

what are your thoughts on the fact that they are building a massive new prison as well?

Hi Brian. I’m glad to hear that your investments are performing so well. I own a local property management company in Poughkeepsie and I know that there is an excellent rental market here. There is no shortage of renters and if you have a well maintained product, you’re very likely to attract a qualified long term tenant. What area are your units in?

Maritza Soto , I think it's a great place to add to your portfolio.  Pretty easy to find cash flow multi's.   Trick is getting it on a nice street. 

Richard Alvarez , their has always been a jail in Poughkeepsie.  They are just expanding it.  I know Poughkeepsie well and there are certain roads I would never consider buying a house on.  The road the prison is on is one of them. 

Matt Caven , yes, certainly no shortage.  I just purchased a 2 family on Dean pl.  Put an add on facebook marketplace, had over 15 hits that day.  The other 2 family is on Albany st...  Really nice street. 

What is the largest employer in Poughkeepsie?  Is IBM employment a factor as Ginny Rometty can be booted out....

Hi Matt - what's a good number to reach you? I own on Albany Street as well.

I have an awesome duplex I will be selling soon (it's my own) - it's a 2/2 with the potential for a third unit.  Nice street, quiet.  Let me know if anyone has interest.  Gross revenue is 28,200.

I live inPoughkeepsie. The city has very high crime n low quality tenants. There are homes very cheap and is such a  temptation when u do the numbers but personally I stay away. 

If you manage to find something on the outskirts where it transitions into the town you may do ok. 

Good lluck seems it’s working out keep us posted in 6 months to a year to see how the tenants work out. 

Gil N.

  I agree that crime is high and that there are some low quality tenants around here.  You just have to understand that going in, that this is the market you are in and you need to screen tenants very carefully.  I screened over 20 tenants to get an apartment on Dean rented.  Yes, 18 of them had aweful credit and some wild story about how I can't call their employer or previous landlord.  That application hits the trash can before they leave the front door.  My buddy doesn't screen much at all and he's fighting for his rent each month and is always evicting someone.  You think he'd learn by now...

@Mike P. Message me- I can’t post a number in the thread.
@Gil N I agree with @Brian Zaug Screening is critical. I get anywhere from 10-30 inquiries a day on a rental post and almost none qualify. Thoroughly screening them from the first call through the application process weed out the bad ones. There are plenty of qualified tenants out there, you just have to find them.

What is making or made Poughkeepsie, NY, such a great market for B&H?

Mike you selling the one on the corner you did? I have been building my portfolio for over 20 years now in Poughkeepsie. I believe in the market. It's not for everyone. I take on full rehabs because I like little maintenance  when I'm done.

Brian, you got great deals. Enjoy them and keep them maintained. Decent duplexes in decent ares  are now 150k to 250k. What will impact sales and opps are the new CO laws. All homes need to be updated with a new CO upon sale to get a mortgage  or cash with a permit to bring into compliance. I just bud on a 3 bed 2 bath needing in my estimate  50-75k to bring it to my standard and I was one of 3 offers the first week. The better deals are going to be competitive. 

Originally posted by @Mike P. :

Hi Matt - what's a good number to reach you? I own on Albany Street as well.

 Me 3! 

Originally posted by @Sam kShueh:

What is the largest employer in Poughkeepsie?  Is IBM employment a factor as Ginny Rometty can be booted out....

IBM has not been a big factor for 20 years, mostly NYC, and the colleges. 

Hi @Brian Zaug

I own in Newburgh, and currently have a property under contract in Poughkeepsie (Thompson Street).  I figure short distance from the Metro north to grand central, and mid hudson walk...what can be wrong, right?  (wrong)

Have been up there every weekend for about 2 months just to survey the area. People tell me it's not bad, though, some streets are sketchy within a 3-5 block radius. Duplex 2 bedroom units with minimal cosmetic upkeep. Needs electrical and plumbing done. What I'm learning is that ARV is not as I anticipated..which may bite me in the tail if I opt to refi as I won't be able to cash out...so perhaps a long term rental with decent tenants. Rents are 1100 to 1150, I can push for 1200 on one of the units given it has a 3rd bedroom (but will probably choose not to).

What I see up there is lots of foreclosed property...I'd think the market slowly will pick back up at some point in the long term.

@Moises Benitez

That area north of the arterial is not my favorite section of Poughkeepsie. I don't look at the houses on Thompson or any of those surrounding streets like smith, winikee, mansion, high, etc. I agree that the ARV's on that section are low but you can purchase pretty low so there is some money to be made, especially cash flow.

Thank you, @Brian Zaug

I'd think you focus more on areas on the west side... (south of the arterial) ?which I drove by  & saw a slight difference in ambiance.

Vassar isn’t an Ivy last time I checked.

Hi Brain -

I liked your original post and your followups. I'm currently looking into purchasing a multi somewhere in Poughkeepsie and have been studying the market. 

From what I saw from only about 2 hours of driving around with my agent is that it all depends on the area. The bartender near the MetroNorth said he loves it there. But he doesn't leave his little area. That seems to be the trend based on what I've been reading, seeing, and hearing from different sources. And I like a lot of the numbers I've been seeing - including yours.

What are your (and anyone else's!) thoughts on the area around the MetroNorth? I saw a duplex on Balding. Needs a TON of rehab. I couldn't get a vibe from the area. I saw a homeless dude pushing his cart and then a young hippie chick riding a bicycle. I met a tenant nearby who's been there 15 years and works at the nearby hospital. 

Any thoughts are welcome!

Thanks!

Hi,

I work in Hyde Park and am looking for a realtor that knows what an ARV is. I'm also looking for a good contractor recommendation.

I've flipped about 15 properties, in NJ, but now am looking here.  

Thank you.

Evin

@Evin Lederman I'm a local broker, REO agent and property manager. I am very familiar with an ARV, but I can tell you there is a serious shortage of inventory right now. I have investors and contractors lined up but the deals just aren't there.

@Jack North Poughkeepsie is a very diverse city and you really have to do your research when it comes to the location you’re interested in purchasing in. The rental market is different literally from street to street. 

What I find so surprising about Poughkeepsie is that there are 600 boarded up houses, but that the inventory is low enough to feel that the market is heating up.  It's a bit hard to reconcile, but this may bump up values of housing that can be occupied.

Many of those boarded up houses aren't worth anything.  They are too far gone, and are too expensive to tear down and build new.  City is better off turning them into a pocket park.

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