Newburgh NY vs Poughkeepsie NY ?

13 Replies

Hello everyone , I want to start looking for my second property In ither of this two cities. Does anyone have any insight as which city my be best for cash flow or what city provide the least risk. I want to but via seller finance or hard money. Thanks everyone

I'm in Newburgh: living here since late 2015, investing here since early 2016.  

I can't speak to Poughkeepsie: I'm very interested in it, and am starting to look there, but it's not my strong suit.  I will say that I know of a few experienced investors here in Newburgh who are starting to make their way up to Poughkeepsie.

On getting a deal for cash flow:
The "crazy deals" with incredible cash flow that got people talking about Newburgh a few years ago are quite scarce, and when they do hit the open market, they go really quick, often for all cash.  Things have slowed down in the late summer and early fall, but prices are still up.  There's a good inventory of properties on the market right now: people who paid top dollar last time the market was high and have been waiting for a chance to get their money out of their properties are doing so.  

That said, the higher prices have had the benefit of shaking loose a lot of what I like to call "good old boy" properties: things held in families for a couple of generations, or owned by older guard investors who have been somewhat out of touch with the market.  Some of these folks will do seller financing, and some of these deals are reasonable.  A lot of these are off market, word of mouth.  I'm working on a deal that falls into this category now.  

Especially regarding "good old boy" deals, I feel like Newburgh is a very "boots on the ground" city right now: you've either got to be here, pounding the pavement, or have a rockstar real estate agent doing that for you, shaking out deals.  I'm very lucky to have one I can recommend (PM me if interested).  

On risk:

Since I saw in another post that you may have a limited renovation budget, I do wanna say that in Newburgh, you've got to do your numbers very carefully, especially in terms of analyzing construction costs.  Due to a number of factors (urban renewal, slumlording, institutional racism, 2006), lots of properties that are hitting the market in this cycle have huge potential but are in rough shape.

Your best bet to avoid getting blindsided is to walk potential properties with a really, really good contractor who has worked extensively in the City of Newburgh, not just the town of Newburgh.  A huge percentage of buildings in the City are Victorian-era, with a whole different construction style, and the City's Building Codes Dept is strict about things that aren't enforced in many municipalities, including the town. 

@Aaron Latos Wow than you for you’re detail response , I think I will try using a hard money to pay for the property and rehab and then refinance to pay the loan off (basically the brrr method) , I would to contact you directly if you don’t mind?
@Eder Aldana I don’t know if that’s a fair comparison right now. Poughkeepsie has a lot of potential down the road. newburgh is seeing a rebirth. What’s going on in newburgh isn’t like comparing one city to another. If your looking at numbers I’m sure some deals in newburgh won’t look as attractive. Just ask yourself why Poughkeepsie which has always held value better has cheaper property’s right now. If your comparing cap rates I would ask which cap rate looks better. Why.
Originally posted by @Aaron Latos :

I'm in Newburgh: living here since late 2015, investing here since early 2016.  

I can't speak to Poughkeepsie: I'm very interested in it, and am starting to look there, but it's not my strong suit.  I will say that I know of a few experienced investors here in Newburgh who are starting to make their way up to Poughkeepsie.

On getting a deal for cash flow:
The "crazy deals" with incredible cash flow that got people talking about Newburgh a few years ago are quite scarce, and when they do hit the open market, they go really quick, often for all cash.  Things have slowed down in the late summer and early fall, but prices are still up.  There's a good inventory of properties on the market right now: people who paid top dollar last time the market was high and have been waiting for a chance to get their money out of their properties are doing so.  

That said, the higher prices have had the benefit of shaking loose a lot of what I like to call "good old boy" properties: things held in families for a couple of generations, or owned by older guard investors who have been somewhat out of touch with the market.  Some of these folks will do seller financing, and some of these deals are reasonable.  A lot of these are off market, word of mouth.  I'm working on a deal that falls into this category now.  

Especially regarding "good old boy" deals, I feel like Newburgh is a very "boots on the ground" city right now: you've either got to be here, pounding the pavement, or have a rockstar real estate agent doing that for you, shaking out deals.  I'm very lucky to have one I can recommend (PM me if interested).  

On risk:

Since I saw in another post that you may have a limited renovation budget, I do wanna say that in Newburgh, you've got to do your numbers very carefully, especially in terms of analyzing construction costs.  Due to a number of factors (urban renewal, slumlording, institutional racism, 2006), lots of properties that are hitting the market in this cycle have huge potential but are in rough shape.

Your best bet to avoid getting blindsided is to walk potential properties with a really, really good contractor who has worked extensively in the City of Newburgh, not just the town of Newburgh.  A huge percentage of buildings in the City are Victorian-era, with a whole different construction style, and the City's Building Codes Dept is strict about things that aren't enforced in many municipalities, including the town. 

 I would be more interested in the newburgh NY area its a little closer to where I live, I'm looking for some good deals in this area can you refer me to a broker who can bring me good deals

@Mattaniah Yip

Still not a fair comparison. Pokeep has the vassar expansion. 3billion dollars? That’s a lot of money.

In pokeep There are a bunch of Reno projects. Some are really big. Many of them well funded.

Newburgh doesn’t have many big projects.

Yet.

Newburgh has a few hundred investors that are changing the city with their own bank accounts, blood and sweat.

I’ll bet on a few hundred determined individuals with a small amount of cash vs one big project and a way smaller pool of investors any day.

Keep in mind tho that only a few years ago this discussion would have never happened.

Newburgh was the worst City in the state by many measures. Pokeep just one of many in the pack of low performing cities in the Hudson valley.  


I don’t think anyone that knew both cities well would say they were equals. Newburgh had a much worse stigma. And with folks that don’t go to newburgh think that still the truth....well it is still there...the stigma.  But reality is different.  



Get out of your car folks and goto newburgh.  See what’s going on.  Reminds me of when I bought my three family in bed Stuy in 2006.  


Same people would say then and now that I’m crazy.  

Stigma???? it’s not true anymore. The worst streets in newburgh are quickly turning to the nicest.

Goto south st. William st. Third street. Lutheran st Ann st. South william st. Renwick benkard Carson. The list goes on. The worst streets are becoming the best.

Anyone that thinks I’m wrong and buys RE and think this isn’t tru wait a few years. Bookmark this thread and call me out. Let me know what you were buying. We will Compare notes....or deeds.

@Mattaniah Yip a few people with drive can do anything.

That’s why when I hear people saying you can’t make this block, this neighborhood this city better I laugh.

They can’t do it, only because they believe they can’t.

So that’s why I think newburgh is Better. It’s not the city, the location, the lack of train, the lack of jobs......it’s not NYC, Orange County and NYS using newburgh as a dumping ground for every sexual deviant they could find for 30 years.

It’s us, the people that want to make newburgh better.

We just decided we would make it happen.