Hello to all and anyone who is savvy about rentals in Newburgh NY. I've purchased some properties from the city, not the hot part but a nice street right below Mount Saint Mary's, just a half block above where everyone is meeting this Friday at Blacc Vanilla. The apartments I'm planning would be 750 square feet 2 bedrooms (small bedrooms) and brand new since the place is a total gut. I think the person that turned me on to Newburgh originally misguided me and told me I could get $1200/month.....Now that I've been checking around it seems that MAYBE that would be true right on Liberty Street, but not up where I am. I'm trying to reorient myself now, and I'm thankful for any guidance or knowledge you all might have about my neighborhood , a block from the park and a block from the college, and how much I can expect for rentals.
I have been searching online (Trulia, Zillow & Hotpads) and noticing the same. I am seeing renovated 2 bedrooms sitting on the market for $800 per month in the heights. I am becoming skeptical of what the true fair market rents are and what an influx of rentals is going to do to the market. There are a LOT of investors purchasing and renovating for buy and holds in the city of Newburgh right now. On one end you have more supply and less demand. The other is the improved desirability to be in the area with the opening of bars, restaurants and the spring market could balance out. This same scene is playing out in Brooklyn right now. They are building apartments everywhere. 2 years ago realtors would list rentals charging potential occupants 12%-15% of the yearly rent as their commission. That turned into one months rent very quickly. Now just about every rental on the market is no fee and rental prices are starting to come down. It looks like a one bedroom is roughly $1300 in Beacon. 2bedroom is $1450-$1700. Although I am a big fan of Newburgh, I think it has a long way to go to achieve these kind of rents. I am basing my investments conservatively at $800 for a nicely redone 1 bedroom in a good area and $1000 for a 2 bedroom. I would not be surprised if I ended up getting slightly less. Time will tell...
Thanks, Justin. That's sobering. This sums up the stalemate property owners in Newburgh have with the city in terms of dumping money into their buildings. You never know when or if you'll see that money back, only anecdotes from everywhere about how "everyone is moving to Newburgh", which is not enough to bank on....
I would talk to agents and also investigate the market in person. Ask your agent to get you into the apartments on the market.
Keep in mind that the spring market will be easier to rent when compared to winter. It’s the last week of March so if your looking at units lingering on the market they were probably listed in January or February. Not traditionally busy rental periods. Even in Brooklyn in the hottest neighborhood I would try to avoid January/February listings like the plague.
Here’s my rent roll I have a few vacancies. When they rent I’ll try to update.
On Broadway in a rough area.....
2 1 bedroom apts. not renovated long term inherited tenants. 800 each. These are really rough.
1 bedroom partially renovated 950
3 3 bedroom apts 1250.1359,1536 1 is renovated.
2 bedroom unrenovated 1000
1.5 bedroom renovated 1100
Robinson Ave 1 bed 971 unrenovated, 2 bedroom renovated 1220 2 bedroom renovated 1250
Renwick unrenovated 1 bd 675
I also rent rooms. I have two rooms rented at 600 each. The rest are 550.
I would speak with an agent and follow that advice. I don’t always go for the highest rent. But If worst comes to worst section 8 will pay 1200 for your 2bedrooms.
As long as you purchased right and made your money going in and don't go too nuts with the reno budget, I think you will be fine. Im sure you purchased the properties from the city for a song and a dance. Even at $800-$1000 per for a one bedroom, I think you'll do just fine.
@Michael Robinson the biggest Q is....what street are you on. When you say right below St Mary’s there is a huge disparity in the quality of life street to street. I’m big on that area over there too I think it will be awesome one day....but south st is probably the only street I’d like to own now.
I looked at a house on Lander (justin did too I think)a while ago....and I was still buying then. I passed. Beautiful house and I could have made it work but it was 250’ from south. And I didn’t like that 250’
the properties are on North Miller Street, a couple hundred feet up from Blacc Vanilla, where the meeting is on Friday, near the church parking lot.
I really appreciate all the information you've put out there for me Justin.
Sorry, I meant to say thank you John as well as Justin. And not that it really makes a difference on a broader scale, but this block really does seem to be very neighborly, albeit with one building where drugs are obviously being sold.
And may I ask where the "rough" part of Broadway is that you're talking about, Justin? Is that still close-ish to the theatre and two alices and all of that? I'd think that would still be worth something.
Most of my stuff is Broadway btw Lutheran and Carpenter. I would say the bad area is from carpenter down to Clark or Johnston. But I’m working on that. Me and a few others are concentrating on cleaning that up.
N Miller is also rough. I salute you.
I've been in Newburgh for 3 years & have three completely full buildings. I have a roomy 2 bedroom I just rented last week on Carter St for $1100 (1 block from the hospital, 1 block from Downing Park) no problem lots of interest. Look on Craigslist to price your apartment, no one I know around here looks on Zillow or Trulia for rentals. I would probably price your small, new, 2 bedrooms for $1000.
Next meetup is this Monday 4/30 8 am. Hope to see you there
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