Yonkers/Mt. Vernon/New Rochelle for cashflow investing
Hi there,
I wanted to get the opinion of other investors and realtors on investing for cash-flow into multifamily homes in Yonkers, New Rochelle and Mount Vernon areas. Do you think these areas are in general overpriced? What has your experience in those areas been like? What are some area specific factors to consider?
Thank you, and I appreciate any insightful comments.
Hello! I see you are from elmhurst. Elmhurst used to be great for investing, but has become quite a bit overpriced. I kinda gave up on a lot of areas just north of NYC as their taxes were not favorable to their rent roll, but I know there is some other people on here which is more their focus.
Hi @Andrey Norin,
I've been investing in Yonkers for the last 6 years and I currently own 15 multi-family properties there. Yonkers is a great commuter city that benefits from its proximity to NYC. The local government has been investing a lot in urban renewal and those investments are starting to bear fruit.
There is a A LOT of competition starting to come in to the city from investors being driven out of yield starved markets like NYC. Even with the recent run up in prices that cap rates for multi-family are still pretty attractive and the returns are pretty healthy. I am still actively investing in the city and will be doing for the foreseeable future.
Hope this helps.
Ruben
I'm also interested in this area.
@Andrey Norin, I have been looking for multi units in the New Rochelle, Mount Vernon and other metro north corridor cities in lower Westchester over the past few months. I'm still working on purchasing my first one, but I can speak a little bit to the numbers I have run. I am finding that there are properties that will cash flow when I have run numbers, but there are not big margins. It really depends on the property's setup and their condition as well. I am finding, due to the taxes, duplexes may break even, but are very close. Triplexes I feel more comfortable with and it gets easier the more units they have. These areas all bring in good rents per square footage but the parking or lack there of or distance to metro north or condition of the neighborhood start to play a role. The parks is tough because Westchester is still a very automobile dependent area. There is decent public infrastructure, but to do grocery shopping, etc. a vehicle is still helpful. There are some I find that I may be a little more critical of because I am actively looking to buy one and move into it to get myself established in managing it and saving money, or at least building equity as I have just moved back to New Rochelle for a job in the city after living in RI for a few years.
Are you looking to JV or do you need to own them 100%? Do you have criteria besides cash flow that you are looking for so I can keep my eyes open for you as I am looking around? I grew up in New Rochelle and worked in lower Westchester remodeling B and C properties for a few years before taking my new job in Manhattan as a project manager building high rises.
Let me know if you'd like to connect! I know I wasn't very specific on actual numbers, I'm on the train, but I hope it was helpful.
Was Spot on with everything he said.
I've been getting better numbers in Mt. Vernon but some of the areas are C- or even D properties.
We should meet up sometime when your around and share some thoughts on the market id love to get another perspective on the area. Ive become a bit burnt out and started looking to CT
@Nick Harvey, I'm headed to a network event tonight in Manhattan, I may have some some time on Tuesday next week, are you free?
Yea im usually back in westchester after 4 so anytime after that im free. I will send u a message with my number and we can connect Monday to confirm
sounds like a plan!
I'm also looking to invest around this area. My plan is to buy a duplex which I could move into and stay for at max 5 years. During those five years I will be expanding my portfolio in the Bronx and growing my HVAC-R business in the Bronx, Westchester, and CT. My areas of interest right now is Mamaroneck, Larchmont, Harrison, Rye, and New Rochelle. I'm giving myself about 9 months to get into a new home in one of these neighborhoods.
@Adam Cherko @Nick Harvey@Account Closed Mount Vernon taxes are high to me, I was looking at a 4 plex near Mount Saint Michael if you are familiar, the taxes were close to 20,000 that is insane. I really like Yonkers I have seen the changes. I hope to see all of you at the first Yonkers Investment meet up to get some great info about investing in Yonkers.
@Lawrence L. Every area has its plus and minuses. At the Yonkers Owners Association meeting last night someone brought up the fact that taxes are higher in Mount Vernon but it's much easier than Yonkers to evict tenants if the need arises. In Yonkers our water bill has also risen by some insane amount over the last few years. Those are things that for the most part none of us can control so focus on finding solid deals with strong cash flows, regardless of the town.
I too have been looking for a multifamily in the New Rochelle, Bronx, Mount Vernon Area. I was born and raised in the Bronx/Mount Vernon area and my family owns a SF in Pelham Manor so I am very familiar with the surrounding areas. Everyone has made some great points, especially @Adam Cherko and @Account Closed. All of the areas do have there pluses and minuses. Lately I've decided to focus my attention on the Bronx, specifically the areas bordering Mt. Vernon. Some of these areas are very close to Yonkers as well. My broker has sent me a few listings of MF's in Yonkers and there are some decent finds around $120K to $300K specifically in the 10701 and 10703 zip codes.
Ramel Sherman you want to connect with Lawrence L. He is in that area you just described. He's a great guy. If you want we can all get together soon as well!
hi I was curious to get thoughts on the attractiveness of Yonkers for investing. Is it still early enough for the appreciation and cash flow to work. Any tips on east coast areas to focus on other than Yonkers that are up and coming. I’d love to find the next “Astoria” or “ Hoboken.” Thanks!
Also curious on the above question. What is the current view on the market?
It’s interesting in my opinion, but I think this chain is still valid regarding the taxes and smaller margins. A realtor I know has been pushing buyers from Manhattan to look at apartments in Yonkers and Riverdale if they have a budget of $350k or under because it seems to be a good outlet for people who want to purchase but don’t have a huge down payment. As someone who currently lives in Manhattan though, I can say that Yonkers and Riverdale and New Rochelle are definitely not walkable cities in comparison, so you'll definitely want to find a place within a reasonable distance from the train stations- or at least with a parking space!
I’d be curious to hear others opinions as well.
Good morning everyone, I’m happy to give some or my experience. Much has changed since this thread was started. Since then I have personally purchased in New Rochelle. I grabbed a duplex with lots of parking, and walking distance to both Pelham and New Rochelle metro north train stations. I would agree that for the large majority of the cities up here they are not quite “walkable” as far are common “walkability scoring” is concerned but with all of the new development happening in New Rochelle I am confident it will feel differently once that engine gets cranking. We are still at the ground floor.
Taxes are something to be concerned about though, they are much higher that neighboring areas in the Bronx, like riverdale or city island as the Bronx as a whole, but the school systems make up for it in most cases if you have children. Another thing to keep in mind about Yonkers is there is an extra income tax, the same as NYC. It is the only city in westchester that has that, and I still have not heard why that is the case.
As an investor I don’t feel that appreciation is anything we can forecast. The properties we look at need to work with today’s numbers and withstand a stress test for changes that may occurred in normal real estate cycling. If appreciation happens, it’s a bonus. That being said, lower westchester, all of it, is in great demand still because of its proximity to the city via the train lines, or even driving should that be needed. There is easy access to New England and upstate as well. At the end of the day, people who live in this area have the ability to connect with the city however they need and be more productive and that’s where the value play is. It means that the value shall be held if not increase.
Keep in mind, there will be changes coming. There are many people getting ready to retire and there will be shifts as they sell their houses and younger generations who have been living in the city venture out to take those spaces.
Also keep an eye on the cities and towns along the New Haven metro north line. As the 4th train line gets added and provides access to Penn Station, I believe those towns will become much more valuable. Those are New Rochelle, Larchmont, Mamaroneck, Harrison, Rye and Port chester.
I’m always happy to chat, I’m a full time agent and investor, from New Rochelle and living here, my parents grew up in Yonkers and my girlfriend (also and agent) lives in Yonkers currently. Inventory is low still, and we need to work to find deals that are awesome but they are here. It’s a great place to be. I’m happy to connect if anyone wants to talk more.
Thanks @Grace Lerner and @Adam Cherko, very helpful.
I agree with Adam on appreciation, i don't factor any of it when looking at a property as I look at it from a different angle (income stream). I have to overcome the hesitation on investing outside of my immediate area (orange county) and eventually pull the trigger if the numbers make sense. What is your general experience in partnering with others on those small multi families to venture out of your comfort zone (location wise)?
I can chime in, I closed on a duplex in Yonkers at the end of 2017 after an extensive 2 year search for the right property. REO Property with higher offers but they didn't agree to the terms so I got lucky (I paid all closing fees and dealt with some liens as well) I live in one unit and rent the other. Taxes are high in the area but lower than anywhere else in Westchester County. Prices have gone up considerably since this thread was started. Modest duplexes tend to go for 450-600k with lots of competition leading to multiple offer situations and houses going for above list. With all that said, rent prices are high so duplexes will still yield a break even and triplexes can net some cash flow if you are patient and willing to wait for the right one. But the word is definitely out and the investors are here in droves especially with all the new development and future plans for the city. There is a city tax but it is very very low compared to NYC's. I am currently looking for a second property in the area