Wholesaler/rehabber · Arcadia, FL · Member since 2013 · 341 posts · 22 votes
Has anyone done any investing in the city of newburgh ny. I have found deals there but they fell threw due to just inexperience on my part and lack of investors interested in the deal. This was many months ago and I am way more educated on the art of wholesaling as well as buy and flip. what im wondering is newburgh worth investing in?
@Eder Aldana rents in newburgh will fair well in a downturn. Easier to rent an apartment for $900/mo than $2000/mo... More people will be looking for affordable rentals in a downturn.
I'm not investing in Newburgh but here's my opinion. The company I work for does a lot of work down in the area so I am somewhat familiar. The actual city I would have no interest in. It over all just seems like a really rough area. The out skirts seem decent, if anything I would look there. Again this is not in my area just based off my initial take.
Has anyone done any investing in the city of newburgh ny. I have found deals there but they fell threw due to just inexperience on my part and lack of investors interested in the deal. This was many months ago and I am way more educated on the art of wholesaling as well as buy and flip. what im wondering is newburgh worth investing in?
do you still have deals in city of newburgh NY are you still looking for properties in this area?
I live in newburgh myself. I can say that recently I have seen a lot of building permits posted on windows. There is also progress that I can see driving by those residential buildings daily. I am in the process of buying my first duplex in newburgh and personally I see change. And this is within the city on either side of Broadway st.
@Derek Sorto Congrats on getting your deal, hope everything goes well. I been actively looking for an off market deal in Newburgh, but i am a little concern investing in Newburgh as to "how will the rental market in Newburgh be affected in a downturn in the market,
@Eder Aldana rents in newburgh will fair well in a downturn. Easier to rent an apartment for $900/mo than $2000/mo... More people will be looking for affordable rentals in a downturn.
@John Hickey I haven’t been down there in a while. From what I understand it’s still about the same. I insure a house flipper that operates down there and does well in the surrounding suburbs.
I was looking to invest in Newburgh as well - many forums I am reading on around “bad areas” reference “not feeling safe” or areas being less desirable. I personally think this is a nice way of saying “I will not invest in areas of people of color” . My thought process is different. Having worked in Newburgh (in the finance world) I encountered many hardworking people who made a decent living, paid their bills but just didn’t have sufficient credit. I am that investor who wants to rebuild these areas and create a neighborhood that would want people to raise their families. Good luck to you Derek!
@Justin Rickson I love to bump these old Newburgh threads. I’m pretty well know in Newburgh as an Investor. I’ve made a good amount of money in a pretty short period of time say 2 years. I was watching Newburgh for about ten years. In 2013 I probably would have somewhat agreed with you but I was bidding on properties. Just didn’t buy anything. Well both of us were dead wrong.
Chances are the OP wouldn’t have bought and held back then but if he did he might have made a fortune. I know at least a dozen people that bought around then that have made exponential amounts of dollars off of relatively small investments. I know one guy that started in RE at that time in Newburgh and has made over a million dollars and retired.
@Capricia Almanzar I saw recently in December a university group ASEZ, clean up three streets in newburgh I believe it was in late December, the idea is that with cleaning up city streets it will reduce crime and overall make a better community. That was their first time in newburgh. Even the mayor gave them an award and stated that with his 28 years in newburgh, he has never seen a group do such a thing. I believe this year is a new beginning for newburgh
@Capricia Almanzar the meetup is usually every month.
It’s up to you how you read things but I would keep in mind that Newburgh was one of the most dangerous cities in the state/country. It’s a small city and if they have a shooting a week that’s going to scare ppl off. If your right and there are racist investors that don’t want to put their money into Newburgh take advantage of that.
Crime has changed tho. Violent crime is down. Lowest levels in ten years in 2017. And it got even safer in 2018. Shootings were down 90%. Hopefully that continues but I would expect gang and drug related crime to occur...tapering off but it will continue. It’s a city after all.
I take note of the shootings, in my experience when things like that happen real estate markets respond. It takes time but that kind of security change means big bucks down the road.
Hey all. I'm starting to take a look at Newburgh. I'm having a hard time figuring out what cash flow may be if I buy a multi-family and fix it up. Does anyone have a solid understanding of what rents look like in Newburgh? I am planning to buy and hold and let my properties cash flow. Thanks!
@John Hickey Thanks for sharing. I’ve been very successful with airbnb in my rental unit in Crown Heights Brooklyn. I am curious how to pull it off in Newburgh. Either way those are strong rent rolls. Thank you for sharing your knowledge.
@Eder Aldana rents in newburgh will fair well in a downturn. Easier to rent an apartment for $900/mo than $2000/mo... More people will be looking for affordable rentals in a downturn.
If investors are going to buy buildings to rent in the 'burgh, rent cannot be that high because people do not get paid enough to afford $1500 for a 1 bedroom. You will have to bring in people from the city and those people are probably going to choose another place because let's face it, if you are moving from a hood you do not want to move into another hood. Why would someone from the city pay $1500 to live around the corner from a crack house? To rebuild the city in order to invest you have to work with community leaders and the mayor. I have lived in the Hudson Valley since the early 1990s by way of Queens and I have seen the change in some towns but others have remained the same because the community does not invest on the community. Right now, some streets are ok but then you turn the corner and it's the Walking Dead, who wants to live like that.
@Capricia Almanzar I saw recently in December a university group ASEZ, clean up three streets in newburgh I believe it was in late December, the idea is that with cleaning up city streets it will reduce crime and overall make a better community. That was their first time in newburgh. Even the mayor gave them an award and stated that with his 28 years in newburgh, he has never seen a group do such a thing. I believe this year is a new beginning for newburgh
PR fluff to get investors like you and @JohnHickey to come in and rape the city.
To ALL the investors on here, please take it easy on gentrification some people enjoy their quaint towns/cities/villages. The people who have been living here for years, do not make much money because the job market in the area is not the greatest. Retail and restaurants unless you have a job as a nurse or construction worker you probably cannot even live on the current working wages. Some families are working 2-3 jobs with children to feed and clothe. Think about this while you are figuring how to make your millions on poor upstate towns. #scavengers
@Eder Aldana rents in newburgh will fair well in a downturn. Easier to rent an apartment for $900/mo than $2000/mo... More people will be looking for affordable rentals in a downturn.
If investors are going to buy buildings to rent in the 'burgh, rent cannot be that high because people do not get paid enough to afford $1500 for a 1 bedroom. You will have to bring in people from the city and those people are probably going to choose another place because let's face it, if you are moving from a hood you do not want to move into another hood. Why would someone from the city pay $1500 to live around the corner from a crack house? To rebuild the city in order to invest you have to work with community leaders and the mayor. I have lived in the Hudson Valley since the early 1990s by way of Queens and I have seen the change in some towns but others have remained the same because the community does not invest on the community. Right now, some streets are ok but then you turn the corner and it's the Walking Dead, who wants to live like that.
Hi Jessica,
not sure how this is relevant to my post.. I said that affordable rents in Newburgh will be more resistant to a downturn.
anyways...I think if you spent some time with the investors in newburgh you'd find a very conscientious group of investors. The standards and quality of housing are being raised. There are plenty of affordable apartments that are being made safer. All positive stuff..... the addition of some higher end apartments for the occasional Brooklyn or Beacon transport isn't the end of the world.
also, in NYC people pay 3200/ month to live around the corner from a crack house....so newburgh's a steal lol
@Account Closed I cannot keep my closed about your post.
Ungrateful comes to mind.
Did you build the building you live in?
Do you own it?
Did you do anything other than write your name on a few pieces of paper and receive a set of keys to a safe, warm dry place to live?
Wake up. Someone like you will
Most likely do nothing with your life other than shuffle from here to there making enough to buy what the television or SM tell you is cool.
I spent years working two jobs having rentals reading books on RE and motivation. Spending much time away from family I finally have a small group of apts that I work on ALL THE TIME to improve.
As far as people being happy where they are. Your right.
And if they like where they live and what they pay it’s their job to make sure they can do so.
They want to live in my apt sign some checks and move in. Don’t like the rent? Keep moving.
The Hudson Valley cities are chock full
Of decrepit old homes full of asbestos, lead paint and in many cases 50 years of deferred Maintenace. Almost every house I’ve bought recently needs and entire new roof. Same thing with windows. Trim are full of lead paint. That means take it out. No one is taking out lead paint for free.
Like dry ceilings? don’t mind paying a bit more sign here. If not keep
Moving.
Many homes in NYS needs renovation to remove these hazards.
New electric, plumbing, roofs, flooring windows bathrooms aren’t free. 2 bedrooms renovations is costing me 65-75k and I do what work I can.
Houses cost 150-250k my rents are above. Taxes 5-8k, insurance for me is 25k a year Maintenace 30k management 30k. Water 28k a year, utilities that I pay 60k Mortgages 12k a month.
Can you do math?
I can tell whatever you pay for rent is too much for you.....But I can also tell if it was free you would feel the same way. But with your attitude don’t worry. There is a slumlord waiting to welcome you to his pets paradise where you’ll be lamenting the conditions you live in. Leaking kithen faucets days without heat, toilets that overflow you’ll both be miserable till the code Dept comes and says the house is unlivable. Then the landord will get a punch list grab a gallon of cheap paint tube of caulk and a few scraps of wood screwed here and there. You find the next slumlord and your place will be take by your ungrateful cheap twin.
I was in the city of Newburgh today scoping out properties. I actually just got home and I cant believe the amount of properties being fixed up. All I can say is WOW!!! Almost everywhere I looked there was some type of improvement being done. I hope the ball has started rolling for this city to be on its way up, and I hope I can find something there as well. Id really love to build a portfolio there.