Buy and Hold in Wyandanch anyone?

9 Replies | Long Island, New York

Very straight forward question. Is anyone doing buy and hold in the Wyandanch area? I ask because I am pretty familiar with the area, live with in 15 minutes, drive through it on my way to work everyday and obviously some of the most affordable real estate in western suffolk is there.  

I would say that is the closest thing to a war zone that you're going to get in Suffolk outside of Brentwood. I am somewhat familiar with the area and after spending a day at the high school for an event I wouldn't recommend touching it. In my opinion if you want lower cost of entry, go out of state, and if you want to invest locally, look in better school districts. It may not look as favorable from a rent to value ratio perspective, but I would expect significantly less repairs and cap ex with higher cost rentals as long as they cash flow.

I've looked into this area but not pursued due to high crime. I think Section 8 tenant will be path to least resistance as long as property cash flows extremely well. Do not expect any appreciation.

There are a tremendous amount of investors making money on both buy-and-holds and flips in Wyandanch.  The proximity to Nassau and NYC compared to other affordable towns helps along with the LIRR station near the newly revitalized area.  Take a look at what other towns have become after their revitalizations near train stations (Rockville Center, Farmingdale, Patchogue).  Their gains have far outpaced the rest of the market.  This isn't to say you shouldn't focus on cash flow (which is quite easy in this market) but the long term outlook for this market is pretty strong.  

I'm by no means a seasoned expert in REI, but everything I've heard from landlords/managers is that the demographics can make all the difference. And it may sound politically incorrect, but it makes good sense. Even if you somehow manage to get decent cashflow from a property in such an area in the short run, if the people are constantly wrecking the property, if the cops are getting called regularly, if rent is late, if the tenants are "sub-leasing" their apartment to 12 people and the house ends up burning down from 134534523452345 things getting plugged into one outlet (all of which happens regularly in these areas), then you're going to have a bad time. The saying goes, "work smarter not harder", which is why the best RE investing is passive, not active. While you're passively accumulating income, you can actively seek out other opportunities, as opposed to spending all your time & resources picking up after scummy tenants. A flip MAY do good there, not knowing the recent sales I couldn't say, but I would NEVER hold onto a property in a ghetto.

I know someone who has flipped in that area and I could see buy and hold being viable as @William Rugen mentioned.  A lot of times, there is a stigma to a neighborhood and it stays even when things have improved.  I'm from the city and there are many areas of BK that were thought of as a "war zone" but are very expensive areas now.  I'm not saying that it's true about Wyandanch and I don't know that area well, but I did see there is a lot of revitalization projects going on especially around the LIRR area.  The state has invested a decent amount of money in the area so that's a good thing. 

Originally posted by @James Medina :

Just like Brooklyn and Harlem, nobody wanted to touch those areas, now everyone wishes they did.  Progress is occurring, and pricing are increasing.

 Very different reasons Brooklyn and Harlem gentrified compared to Wyandanch's potential...