Shirley, NY · Member since 2016 · 4 posts · 0 votes
Would love to connect with anyone who has been successful flipping houses in Suffolk County, NY.
I've been eyeing the Mastic/Shirley/Mastic Beach area. I have a general understanding of the marketplace but have concerns about the amount of supply in the area, the negative perception of the neighborhoods, high property taxes etc. Open to simply chat. Leave a post or connect with me.
Accountant · Selden, NY · Member since 2014 · 28 posts · 17 votes
10y
I grew up in Mastic Beach, so I know the area quite well. It's not a very nice neighborhood. The west side of William Floyd away from the water is alright, but kind of expensive considering that you still have to send your kids to William Floyd High School. Take a ride through the neighborhood if you want to know about the supply. A lot of streets have more than one boarded up house. I would also take a look at FEMA's flood maps. Sandy did a number to a lot of the homes closer to Smith Point. There are a lot of cheap houses over there, but I wouldn't even feel safe leaving my tools in an unoccupied house in that area. I'm currently working on a house in Center Moriches, it's my first one. It cost a little more to pickup, but it's a much nicer area.
Accountant · Selden, NY · Member since 2014 · 28 posts · 17 votes
10y
I grew up in Mastic Beach, so I know the area quite well. It's not a very nice neighborhood. The west side of William Floyd away from the water is alright, but kind of expensive considering that you still have to send your kids to William Floyd High School. Take a ride through the neighborhood if you want to know about the supply. A lot of streets have more than one boarded up house. I would also take a look at FEMA's flood maps. Sandy did a number to a lot of the homes closer to Smith Point. There are a lot of cheap houses over there, but I wouldn't even feel safe leaving my tools in an unoccupied house in that area. I'm currently working on a house in Center Moriches, it's my first one. It cost a little more to pickup, but it's a much nicer area.
Shirley, NY · Member since 2016 · 4 posts · 0 votes
10y
David - thanks for the insight, it's much appreciated. Everyone I've talked to has had similar thoughts to yours. It does seem like there might be some opportunity in the right part of Shirley or Mastic in the 3 bed, 2 bath arena... but the risk is probably not worth it.
What's your plan in Center Moriches? What kind of property? Flip, hold? I grew up in Westhampton so familiar with the area.
Accountant · Selden, NY · Member since 2014 · 28 posts · 17 votes
10y
I'm flipping this house. It was a short sale. Doing most of the work myself except for some of the larger projects like adding the bathroom and replacing the roof.
An old neighbor of mine just sold his place. It was around the corner from TJ Hero shop. It's a 2/1 and went for 183k. He had it listed for only 3 days. But in this case, the house was in really good shape. So, it can be done I guess.
Accountant · Selden, NY · Member since 2014 · 28 posts · 17 votes
10y
The Woman who runs the local REIA does a lot of houses in that neighborhood as well. If you do go for it, just stay away from Neighborhood Rd. and anything south of it.
Dix Hills, NY · Member since 2014 · 25 posts · 3 votes
10y
Do flips in Long Island but not that far out east. I do have several section 8 rentals in mastic/coram/Medford (Gordon heights) area.
Not sure if it's a good area for flips. Never really seemed like a desirable are and just looks mostly distressed. If you do buy out there make sure it's not currently in a flood zone and doesn't need to be raised.
Massapequa, NY · Member since 2016 · 11 posts · 6 votes
10y
Raja,
I'm a newbie investor looking to purchase my first property in the mastic area for a section 8 rental. I was just wondering if you could offer some insight on how they have worked out for you. More specifically cash flow and your experience with section 8 renters.
Nick, not sure who you are directing your question to, but I did not finance the property. I'm using personal funds.
Raja, Do you find it difficult dealing with Section 8 Tenants in those areas? How do they treat your houses?
Haven't had any issues as of yet. The portion paid by section 8 is direct deposit and there is a small portion paid by the tenant. We kind of understand from the beginning the tenant portion is pretty much hit or miss.
They tend to not want to lose their voucher so they keep the place decent. Although we don't use high quality materials. Easily replaceable stuff.
We use a broker to find the tenants. The broker fee is also paid by the town.
I'm a newbie investor looking to purchase my first property in the mastic area for a section 8 rental. I was just wondering if you could offer some insight on how they have worked out for you. More specifically cash flow and your experience with section 8 renters.
Rent rates are good for a 3br we get around $1700. Plus the portion from tenant. This will vary depending on the family you find.
Our cap rates are good because we buy places that are completely gutted and Reno ourselves.
The approval process is a huge pain. You'll need to have an inspector come twice (one for the town and one from the cdc) to approve your property.
To give you an idea we failed once because there were too many leaves that fell (fall season) and the number on the house wasn't big enough.
Massapequa, NY · Member since 2016 · 11 posts · 6 votes
10y
Raja,
I just had a few more questions. Sorry for being a pain I am just trying to minimize my risk as much as possible on the first few properties. What are you typically paying for these properties and how much money are you putting in to get it up to section 8 standards? Are you financing the whole thing or do you have mortgages on the properties? Also are you paying flood insurance for any of these properties and what is the estimated cost of a policy there? Thank you in advance.
Accountant · Selden, NY · Member since 2014 · 28 posts · 17 votes
10y
Mastic Beach has recently become its own township, it is no longer a hamlet of Brookhaven. From what I hear, they are making it much more difficult to have section 8 housing there. I know that Shirley was also trying to follow suit, but I'm not sure how far they got. If Mastic and Shirley do the same, it may be more difficult down the road. Just something to keep in mind.
Dix Hills, NY · Member since 2014 · 25 posts · 3 votes
10y
David,
Did not know this good to know! Thanks
Anthony,
For my Medford property I paid 64k 3br 1.5 bath. Full basement. We have our own crew so rehab cost me around 12k. Salvage whatever we can and clean up as much as we can. Section 8 rules aren't anything crazy things like no exposed wires, reset buttons on outlets in kitchen and bath, carbon monoxide/smoke monitors, windows in working order etc. Property must be clear of all debri and a few other things. Usually with a rental property you'll be doing these things anyway.
Note you'll need to get a rental permit first. The rental permit will require a survey on file, CO, etc. If the survey is not in the town records will have to get it done. Once you have the rental permit from
Town of Brookhaven you can get section 8 to send their own inspector.
Accountant · Selden, NY · Member since 2014 · 28 posts · 17 votes
10y
Hey Raja,
This is a little off topic, but since you said you had a section 8 house there, I figured that i'd bring it up. I was told once that Gordon Heights has more registered sex offenders than registered voters. I took a look at a house in that neighborhood around 8 months ago. From the looks of it, that definitely could be the case.
Dix Hills, NY · Member since 2014 · 25 posts · 3 votes
10y
Lol well I have two there now. One more in Coram and one in Medford.
Funny story, place was vacant for about two months after rehab completed due to he inspectors taking forever. Anyway during that time I would drive everyday to make sure nothing was stolen.
One day get there and some guy is sleeping in the room. Scary stuff. Told him we'd call the cops if he ever came back. He said he won't be back and he's sorry but someone rented him the room. "I'm going to go find him and kill him now".
Not sure how much bs that is but he wasted a full tank of oil and clogged the toilets.
Accountant · Selden, NY · Member since 2014 · 28 posts · 17 votes
10y
That is too funny. I worked at a U-Haul when I was younger and we found someone sleeping in one of the storage units. He had piss jugs in there and everything. My Best friends house (Mastic) was next to an abandoned house and the same thing happened. The Cops were there kicking the people out, and when we asked them what happened, they said the same thing. Someone who didn't own the house was renting it out to these people. Life is a trip.
Dix Hills, NY · Member since 2014 · 25 posts · 3 votes
10y
Guess it's a pretty common problem. Another thing to def consider in this area.
Anthony, for your other questions - I have a landlord tenant policy I can refer you to the broker. Around $1100 for the year. Property purchased all cash. Feel free to pm me anytime.
Lido Beach, NY · Member since 2016 · 10 posts · 0 votes
8y
I know this is an old thread - but I just purchased a raised 2 bedroom in Mastic Beach - turnkey for 160k - looking to get 1700 - ROI with 20% down is around 20%