What Advantage Buying Bronx Single Family Versus 2 MF in CT or PA

Question

if you had a choice to invest in a single family in bronx ny with a complete basement finished apt versus a 2MF in CT or PA what would you decide upon and why ?

I am now considering either buying a single family in Bronx, and wondering if it would be a better investment opportunity or Return on Investment versus buying in CT or PA.

I am wondering if it is worth while to go for the appreciation rate in Bronx, and how much higher appreciation rate would be than CT or PA, a single family can be picked up around for 380k-400k ... what would be the approximate appreciate rate in 1st year, 3 rd, 5th year

Peter Nikic · Answer

It's better for you because you're already in the Bronx. It'll save you a lot of time, travel expense and expenses of paying others when you can't be there. I also think going forward, the Bronx will appreciate and maintain it's value better than the areas you'd otherwise buy in (in CT & PA) - this is just my opinion. I've been wrong about the Bronx in the past, but that was mostly lack of trust that the Bronx will grow in value. I remember being able to buy any house along Pelham Pkwy for under $100k, they're probably $1M average now (I never would have imagined it).

Your biggest challenge is to make sure you don't get a bad tenant, that would be devastating.

Calvin Thomas · Answer

Stay away from NYC unless you have deep pockets. If something goes wrong and you need to evict, normally, it's six months to a year. Now, closer to two years I am told for non-payment. You can get rid of someone in CT or most PA cities/towns within 60 days. You couldn't give me a home in NYC to manage or take over.

Edwin De leon · Answer

Thanks a single family would be about the most I can purchase due to higher prices on 2 MF, the single family would have to have a basement finished apt to help pay mortgage, I will keep my options open for NY area, I would like the higher appreciation I would get long term in NYC

Ceasar Rosas · Answer

@Edwin De leon

Have you been working with any Realtors as of yet? It is nearly impossible to find a single family in the Bronx under $350k. Especially one that will pass VA financing. Your best bet is to look in CT and a little over an hour out. Unless you can source deals yourself, but even that will be extremely tough. Anything under 350k will have violations, need extreme renovations, etc.....

Edwin De leon · Answer

Hey Ceasar... I will go in with va loan pre-qualified for $350k use my objective is both cash flow and appreciation... higher appreciation is important for me my plan would be to pickup  single family with finished bsmt apt so I coukd live there for 1st year

Edwin De leon · Answer

Hey... thank you Peter clarify from an investor perspective why u think  bronx single family would be better.... than investing in CT or PA... u may have more than one reason why u think it would be better so tell me what are the reasons u think it would be better to buy single family in bronx

Ceasar Rosas · Answer

How are you buying, all cash? Mortgage? It truly depends, if you are solely looking for appreciation, I believe the Bronx is your best bet. In the Bronx on a single, unless you find a truly awesome deal, you will not cashflow on a single. A single family is going to cost you at the lowest end 450k, and as high as 800k+, depending on neighborhood, and you likely will not get rents 4500+. Where I invest in CT, I can definitely meet the 1% rule and cashflow is decent, but appreciation is slower. So what are your goals exactly?

Taylor L. · Answer

I couldn't see investing in NY or CT due to the legal environment. I hear that PA's are not much better, but it's likely a step in the right direction.

PA is also a big state, so it would depend on which specific market you're referring to. I'd be open to the Lancaster area, for example, but not the more rural industrial steel/coal towns.

Peter Nikic · Answer

Hard to say which is better in the long run, but I think you'd be better off with a SF in the Bronx. Stay close to subway/transportation, like Westchester Square or even Sounview down by the ferry (Clason Point). I also like Morris Heights near the Metro North station. Good luck.

What Advantage Buying Bronx Single Family Versus 2 MF in CT or PA

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