Rentals in Tuxedo Park

[Lior Shulstein]

Hi everyone,

I’ve been hearing and reading mixed reviews about Tuxedo Park, and as an out-of-state investor I’d really appreciate your perspective.

For those of you who own or manage rentals in Tuxedo Park:

• -Have you been able to find reliable tenants (pay on time, take care of the property)?

• -What has your tenant turnover been like? Do tenants tend to stay long-term?

• -In your view, is the area trending upward or showing signs of improvement?

• - For a typical 3-bed / 2-bath property, what kind of rent could I realistically expect? I’ve already checked RentCast and Zillow, but I’d like to hear your perspective based on experience.
  
  

Any additional insights or experiences you can share would be greatly appreciated!

Thanks in advance,
Leor

[Jaron Walling]

@Lior Shulstein Echoing what @Zachary Clevenger mentioned Tuxedo Park is pretty rough. It's C/C- class in my opinion. It's improving but mostly near the parks and main corridors. New bike lines are a plus. There's plenty of sketchy streets mixed in. 

I lived on the east side for 6 years and started my journey there, but I bought in Irvington. It's a nicer neighborhood. Either way the majority of houses in the east side require work. The housing stock is old (1920-1960s), charming, and relatively good size, but they require lifting if you're chasing top market rent. You'll find distressed rentals with tenants paying $750 per month when market rate for a renovated property is $1400. Closing that gap comes at a cost to any investor. 

Renovation quality matters. If you think you can buy an OOS property for cheap, replace a roof, and slap some paint you're not going to like the tenant pool. Admittedly we over renovate our rentals, but we don't have issues finding higher class tenants. The market is tough in general, but we have had zero vacancy for almost 8 years. The BRRRR strategy is alive and well, it's heavily front loaded, and requires keeping more dollars in the property (that's call investing). Be prepared for that or avoid this strategy in the east side. Cheers.