Multi-family showdown: Yonkers vs. Stamford - Need some advice

12 Replies

Hey all, so I sold one of my buildings and I am looking to buy another one either in Stamford, CT or Yonkers, NY.  The thing is I'd like to keep one of the units for myself, but I do not know much about Yonkers, and it's hard to find a multi-family in Stamford where the numbers actually work with a mortgage.  Could someone please provide some advice here on how to proceed? Normally, I buy in the more urban parts, but since I want an apt. for myself, I'd want it to be in a better area.  Am I delusional to see if I can make the numbers work?

Hey, @Mike A. , what's your price range? Do you have to be close to the city? I follow the advice "live where you want to live, invest where the numbers make sense."

No, I do not need to be close to the city. I can spend up to a million or so for the building.  I just thought I'd be killing two birds with one stone buying a building and living in one of the units.  I just want it to be in a good area, I'd prefer 6+ units; if possible.

Mike,

It sounds like the locations are fungible, then it comes down solely to ROI. Run your numbers and figure which is the better deal.

When you say "better area," both STM and YNK have great areas and dicey areas.  Check the crime stats, but property prices will also generally reflect that.

In either location, given the Westchester R.E. market, it is always challenging to find a property where the numbers work.

Joe

Yonkers is low tax area by Westchester standards and is right next to NYC so is more appreciable, not to mention a billion dollars of development going on downtown currently, I'd take Yonkers all day, you just have to be realistic on your expectation of returns in these high demand areas, they offer lower returns but less vacancy and more appreciation

In my expierience, the difference in property taxes in most situations when comparing these two city’s makes Stamford a better buy for the same price. Finding a deal that you would want to live in is the most important step. Let me know if you would like to talk markets anytime.

Originally posted by @Angelo Pozzuto :

In my expierience, the difference in property taxes in most situations when comparing these two city’s makes Stamford a better buy for the same price. Finding a deal that you would want to live in is the most important step. Let me know if you would like to talk markets anytime.

Certainly up for it. I was either going to buy a condo in a high-rise for myself capped at 250k cash, or attempt to buy a commercial property around a million or so. I just do not want to be in a bad area nor in a small multi-family.  I guess I just need some guidance.  I have some properties in other parts of CT, but I wouldn't live in any of them.  They are not bad, but maybe C areas.  I'd prefer to be in an A or B area since I sometimes work at home as well.  

@Mike A. , anything 5+ requires a commercial loan, most of which explicitly prohibit owner-occupied.

There are a few multi-families around $1MM here in Greenwich. You may not see great cash flow, but appreciation is good, taxe rate is one of the lowest in the state, and I can't say enough about how great the town is.

Originally posted by @Jaysen Medhurst :

@Mike A., anything 5+ requires a commercial loan, most of which explicitly prohibit owner-occupied.

There are a few multi-families around $1MM here in Greenwich. You may not see great cash flow, but appreciation is good, taxe rate is one of the lowest in the state, and I can't say enough about how great the town is.

If you can PM them to me (not sure if you're a realtor or not), that would be great. My commercial bank doesn't mind if I occupy one of the units.  Just as long as I pay rent.

Some good info in this thread already. I had a similar debate, albeit without the added piece of living in the property. Ended up buying in Yonkers, and happy I did. Lots of development in the downtown area, quick train ride into the city, etc. In short, a lot of good signs that Yonkers is one of the next areas to develop outside of NYC.

HI Mike, we're in kind of a similar situation. Started out looking at condos under $250k, but I always preferred a small SFH (which I was going to cap at $300k), but neither of these choices would work well to househack, so now we're looking at 2-4 fam (preferably under $400k). If you're open to the condo idea,I'd suggest looking at South Norwalk (SoNo). Now that we're looking at 2-4 MFH househack, it gets tougher bc we'd live in it. Westchester properties tend to be OLD and unlike you who can spend $1mil, we're nowhere close to that spend, so it's been very hard. If you're NOT going to live in it and must stay in Westchester, look at Verplanck. The numbers work there. Good luck with your search.

Yonkers appreciate me faster than Stamford.

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