I've been looking around trying to find people that actually successfully buy and hold here in Suffolk since that has been where most of my experience is at. Suffolk is notorious for having AWFULLY high taxes. My old landlord's taxes were over 1,000 a month (more than my rent). If anyone is doing it successfully I'd love to buy them a liquid of their choice and chat about how they've done it! I searched the forums before posting this and turned up empty handed.
I am from Queens New York and I could tell you: the taxes in Suffolk are extremely high.. I had one co-worker who was paying almost 9000 a year in taxes. So not to say deals are not done in that area, just that you may have to talk to a reputable broker that will represent you as a buyer only.
A thousand a month in taxes? Yes, not uncommon here in the NYC area.
I wanted to clarify that when I said where most of my experience is at I mean in buy and hold not in Suffolk County.
@zaheer Have you done deals in the area that are buy and hold?
@darren what are people looking at per door for their B&Hs? The 50% rule seems to be more of a 75-80% minimum here. I had a discussion some time about about my properties and people gave me mixed reviews. The property prices were inflated and I think threw off a few people (considering reserves blah blah). I've never done anything that has been within the 2 or 50 percent that people rave about here.
No, I haven't done any deal in that area because the high taxes are very discouraging; taking into consideration that the unemployment figures are not too good. However, this is not to say that deals aren't done in that territory. Just that it is hard to find good deals, since most of these properties are listed with brokers. Even Foreclosures or pre-foreclosures prices are highly inflated in addition to the high taxes.
I think you should research the area you would like to invest in and look for FSBO... and apply your real estate formula and try to negotiate your way through a good price..
Here's is something to work with: Research Nassa County where the taxes are lower, like 3000k, or even here in queens where the prices are little higher but the taxes lower. You can get good foreclosure deals in queens where you can buy and hold. Again: do your research, especially for in between good neighborhoods for a good price and fair taxes.
I came across my first 2% rule home yesterday on the MLS for $170,000. Looks like it could easily do $3600 a month in rent. That's never the norm here. Again first time I ever found that here in NJ. Taxes were above $12,000 a year and house was assessed at almost $350,000 so I would apply for reduction. Not the best area, not the worst.
Darren, must been a multi then, right? Dupe atleast? I've also dug a little up about yellow lettering here and supposedly also pretty unfruitful. Long island specifically. Any experience with that Zaheer? Sorry I'm not tagging. On my phone and I don't have the app cause I habe an android.
so do you generally flip, then, darren?
@Abram Ylitalo I'm a buy and hold guy primarily. Its just that I like to play in a certain space just to make my life easier. I like higher end units with higher rents. However since I work with other investors I'm always exploring and finding places.
@Zaheer Jabbar How long have you been investing in Queens?
@Darren Sager That's called your farming are right? Hahaha. You invest primarily in NJ then? I saw on your profile you're licensed in NY too to work in Manhattan, right? I'm in the process of getting my license. 9 day crash course starts next week. 3rd state I've enrolled, first one that I'll actually finish. 3rd times the charm I suppose. Hoping that the 3 percent (which I've also heard is elusive in the area) will help secure a little bit better margin in any deals I wind up doing. I've been looking to work with mainly investor clients so am doing my practical research now. Looks like I may be directing my BHers toward the boros.
Good find Darren!
Hello, I have just closed on a house here in Shirley and my tax is 11,000. I bought the house for 135k full cash offer, put new kitchen bathroom and Sheetrock. We have a tenant waiting to move in on January for 2500 plus utility a month. Also own another high ranch house where we live upstairs and rent downstairs for1150 plus utility and our tax here is 11,600. It's been going up since we bought the house on 2012.
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