Bronx New York

16 Replies

Hello community: A fellow member here from New York who is very interested in the Bronx market. I believe once the feeding frenzy is done with Brooklyn and Queens, Bronx will be next up if we're not already there.  

I think I agree guys. Do you have any good ideas on what specific areas of the boogie down will blow up first? Maybe Mott Haven? I want to get in on the ground floor.

Hi @Shad G. , welcome to the BP community!

You're right about that, I just believe it's a long shot (5-10yrs). My best bet would be near the water. I heard that high rises are being built somewhere near the Yankee stadium. 

Disclosure: I'm not so familiar in that area, but I'm planning on getting a closer look on the market there soon.

Happy investing!

I am not sure if you all missed the publications in the Real Deal but I looked up the links for you all to read. You'll find this VERY informative. 

Also I wouldn't knock Brooklyn just yet. The amount of sales are up nearly 25% form last years 4th Quarter report from Miller Samuel, which states that a large contribution was from 1-3 family sales. Currently I am representing homebuyers looking to purchase a 1-3 family to live and rent out with a budget of $1.6M. I've been seeing a lot of 2-3 Family homes that are fix n flips and as the market shows they are selling like hot cakes. Keep in mind inventory is also down so its not like the sales are up because of a high inventory spike. With the Median sales price in BK setting historical records its an excellent time for investors. This means the public is comfortable living out in East Brooklyn. The demand is now here.

BRONX MARKET & COMPARISON CAP RATES http://therealdeal.com/issues_articles/the-bronx-f...

TRANSIT IN THE BRONX - DEVELOPERS TARGETING THE HIGHEST TRANSIT AREAS http://therealdeal.com/issues_articles/next-stop-t...

THE MOST ACTIVE DEVELOPERS IN THE BRONX http://therealdeal.com/issues_articles/the-bronx-h...

MARKET REPORTS http://www.elliman.com/reports-and-guides/reports/...

If anyone needs any real estate assistance don't hesitate to reach out. I have access to off-market inventory, contractors, architects and private lenders. 

Yeah I also recently heard they are trying to build a Metro North Station at Hunts Points... actually just found an article that the MTA is planning 4 new stations in the Bronx

https://www.dnainfo.com/new-york/20140925/hunts-point/4-new-metro-north-stations-coming-bronx 

I am also investing a bit in the Bronx. I think there is good long term potential but agree it probably won't be for another 5-10 years. But the MTA needs to improve service before more areas will become desirable. There are some express train lines that in theory could provide good transportation between the Bronx and Manhattan if they would actually run express all the time, come more frequently, not run extremely slowly and stop randomly, and not keep having service changes that make the lines stop running on weekends and evenings.

Originally posted by Account Closed:

I am also investing a bit in the Bronx. I think there is good long term potential but agree it probably won't be for another 5-10 years. But the MTA needs to improve service before more areas will become desirable. There are some express train lines that in theory could provide good transportation between the Bronx and Manhattan if they would actually run express all the time, come more frequently, not run extremely slowly and stop randomly, and not keep having service changes that make the lines stop running on weekends and evenings.

 My 9-5 is a bus operator for the mta and improving service is a long shot not to say it can't happen over time the mta is just like any other business they try to cut cost and control expenses and in the mix of that service is affected 

Unfortunately the ship has sailed in the Bronx. Too many investors left Brooklyn over the last 24 months. It's saturated and deals are few and far between if any. 10% cap rates which were the norm a few years ago are gone. You are looking at 6% average cap rate right now. 8% on the high side. Look further north... In and around Yonkers. 10-12% cap can still be found. Yonkers reminds me of Bushwick 15 years ago.

You wouldnt find many artists/hipsters in Bushwick 15-20 years ago. You would find boarded up buildings, graffiti everywhere and drugs being dealt wide open in the street. Bushwick was the heroin capital of the world. Starr St, Jefferson and Troutman and Maria Hernandez Park was literally an open pharmacy with people coming from all over the state to buy drugs. Property owners were selling cheap.  You could pick up 6 Fam brownstones for less then $100K if you wanted to deal with the element. Most landlords at the time were older Italian folks who happy to put $100K in there pocket in a place that there was no future. The 6 Fam brownstones are now selling for 1.5-2MM. My comparison to Yonkers is not the Hipster/Yuppy types that you now find in Bushwick. My comparison is the dilapidated buildings, drugs being sold in the open, and landlords looking to run from the neighborhood. Mind you the Renaissance has already begun in Downtown Yonkers. But the outskirts are still touchable. 

@Martin Rogers I agree with you on the drug sales being more out in the open back then.

However 15-20 years ago bushwick had already started to gentrify. Block by block not very much but it was going on. From my personal perspective I was working in what's called east Williamsburg now. Siegel and white in 1997. I would walk down to the bushwick houses where there was a check cashing place and that neighborhood was gentrifying. When I came and went I would drive down Bushwick Ave to the Interboro and I remember seeing a steady stream of what we used to call frontiersman. They looked like they got pushed out of alphabet city and they were not long time neighborhood types. A lot of them looked like they could be customers for the dealers but they were artsy. Most of them are long gone now. Makes me wish I had somehow tracked them so I could buy in the place they now call home.

Governing has a good map of gentrification in NYC and it shows a bit between 1990-2000 and ton in 2000-2010. I have noticed that you don't have to be the first guy in the block to make money. The block I bough on in 2007 in bed stuy shows gentrified in 2000. My buddy had bought a shop for his welding company there in the early 90's and I felt stupid for not following sooner. But he sold and made great money and I bought much later but stayed later.

What do like in Yonkers?

http://www.governing.com/gov-data/new-york-gentrification-maps-demographic-data.html

Hey Everyone!

I am also from (and currently live) in the Bronx, specifically Soundview. I am a newbie when it comes to REI. I am planning on investing in and around this area of The Bronx. To be more specific, I am planning to invest in Residential Multi-Family Properties ( 2-4 units ). I heard that this part of The Bronx is a great place to invest in right now, correct me if I am wrong as I am open-minded to all answers. I am also looking to connect with investors that have the same interests as me, as I have a lot of time currently ( seriously )

@Shad G.

Welcome.

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com

Good Luck

Paul 

I agree, and I am anxious to see how this shift effects the dynamics of those in the Bronx and Lower Westchester County.

In theory if this continues we may see large influx of New Yorkers moving out of the city and in Westchester County

My thoughts exactly! I'm just getting in to the beginning stages of planning to house hack/live-in landlord in the Bronx by next year. I'm hoping to work with 2-4 unit family properties. I'm finding a lot of property on Trulia. I'm now investigating the MLS. Most asking prices are far off from being cash flow properties.

Anybody have any insight?

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