Newburgh, NY. Buy, sell or run for your life?

Question

Has Newburgh, NY  really turned the corner as a good real estate investment?  Looking to branch out from Beacon, but I'm always getting conflicting reports in regards to the future on Newburgh. I do flip single family homes but in the long-term, I want to add to my multifamily portfolio. I've also been sniffing around Kingston to see how the markets are doing up there. But there is something exciting about Newburgh which really intrigues me.

John Bucci · Answer

For what it's worth, I just renovated a 2bd 1 ba apartment in Newburgh and raised the rent from $900/ month to $1200/ month. Nothing crazy, just a nice clean updated apartment. Probably had 10+ showings.

for anyone wondering about demand and upside potential @David Lant @Jaysen Medhurst

for anyone wondering about demand and upside potential @David Lant @Jaysen Medhurst

Steve O. · Answer

John,

I went by your property on Lutheran today.  If I’m correct, it’s the corner storefront with apts on top.  Did a very nice job.  Wow, that area was a major drug/hooker area.  I service the A&S deli right accross the street and come to think of it I haven’t seen much of that lately.

Steve O. · Answer

I have worked in Newburgh for the past ten years.  Not just passing through to go to an office building, rather pounding the streets in every bodega.  I’m an owner of a distribution Beverage co.   my first year, there was 6 murders in 3 months. It was scary.  The past few years, it has gotten much better.  However, there are still hookers and drug dealers.  There’s a lot more construction going on.  I always tell people Newburg is a place where you have money to sit and wait for the real gentrification to happen, you can become extremely wealthy.  However, I am extremely conservative and frankly don’t have the balls to invest there.

J.R. Coffin · Answer

@John B. What are your cross streets in Newburgh? I'm also looking to renovate a property nearby but know how quickly crime can change block to block in areas like Newburgh.

David Lant · Answer

I am that David Lant. I disappeared from the site for a while and was shocked to see how many people had replied to my question.

J.R. Coffin · Answer

Thanks @John Hickey. I'll definitely check that out. I was there this weekend looking at a few properties and for the most part liked what I saw. I definitely see the growth in the Washington Heights area but the neighborhoods I was in interested in were very spotty. I'm gonna run the numbers and let that help make the decision.

Lizette Sinhart · Answer

I am looking at a multi fam to invest in in Newburg. I see the change happening and I have boots on the ground with ppl that live there that see the change happening. I am ok to buy and hold until I see the turn . Property has already been renovated and is tenant occupied.

John Hickey · Answer

@Steve Orluski I saw a guy delivering on Broadway at Clark yesterday and I thought....I wonder if that’s Steve. I also own the buildings with the meat market and 99 cent store at Clark.  While not as rough as broadway and Lutheran was it was also a handful to clean up.  But worth it.

Btw this is when I bought. I’ll put up and after pic too.  I told myself at the time...one day this will be a better neighborhood   And I will help make that happen. Then I just woke up every day for a year and half and focused on how to do that

John Hickey · Answer

@Steve Orluski yes that’s it. Lot of people called it “the building” so In drug and hooker circles ppl would say I’m at the building. Some Cops said it was the worst building in newburgh.

Can’t take all the credit tho.  Cops did a lot.  They backed me up.  I juts tossed all the people that broke the rules.  They mostly happened to be convicts, hookers, addicts and child molesters.  I made simple rules besides the regular stuff.  Not partying, no hookers, drugs, no visitors and no police contact.

Seemed everyone that couldn’t keep those rules was also those that caused the trouble.  And once they were gone it got a lot better.

That’s my recipe for making money.  By the worst building in the City secure it and rent out to good ppl.

Newburgh, NY. Buy, sell or run for your life?

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