Renovated Rental Market?

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Topic: Renovated Rental Market?

General Newburgh Discussion February 7, 2016 at 7:38 pm

Renovated Rental Market?

Hello!

My fiancé and I have fallen in love with Newburgh for many reasons, and are planning on relocating from NYC in early 2017. We love that Newburgh has a large community of activists, artists and those dedicated to the sustainable growth and development of the beautiful city. From what we can tell, Newburgh also seems to have a good size LGBT population.

We’d like to purchase an abandoned older building and do a complete rehab and restore, although we are still trying to decide whether we want to go for a single family or a multifamily, living in one unit and renting out the other(s).

We’ve seen lots of advertisements in 2 Alices and online for recently renovated apartments for rent, but we’re curious on what the vacancy rate and market is like for these units? Any multifamily owners on the forum who can provide any helpful insight? Is there perhaps a glut of apartments for rent in the city right now?

Thanks All!

Jon and Noah

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There’s a lot of non-profit developments in the works, they have the advantage of having their build and carrying costs subsidized. As well, new zoning will be allowing for higher density housing as a means of increasing tax revenue. As a privateer you’ll be competing with that and have the need to recoup renovation costs. I live on the north east end (river views, less crime) and judging by the long standing ‘for rent signs’ there currently isn’t a strong demand. Perhaps they’re selective.

It’s so great to hear that you’re interested in moving up! Having renovated single family and small building there are pros and cons. In terms of the rental market, it depends on the location of the property. While there may be a few ‘newly rehabbed’ rentals that appear to be ‘sitting’ awhile, there are others that are grabbed as soon as a tenant leaves. I’d say the best approach is to do your homework by living in a rental for a little while and getting a feel for the different areas in the city. On the one hand, a single family, with parking, a yard, etc is attractive. On the other hand, it’s nice to have income from a multi to help pay the high property and school taxes and even work off a little mortgage. It is also true, as redpill indicates, that there are some newer renovations that have had the benefit of subsidy…and the market can only bear so much in going rents. So, you may find yourself, as I have, rehabbing a property using private dollars and getting a rent for a nicely done place that someone else was able to create at a lower cost. Anyhow, since you’ve used the word ‘love’ twice in your opening paragraph, methinks it’s beyond (too much) analysis anyway 😉 Welcome to this PLACE! Happy to give you more specific details in email. Ask Cher to put us in touch if you’re interested.

Hi Jon and Noah,

Your plans on coming to Newburgh are exciting! You’ll find its a very welcoming place.

My fiancee Nadene and I own two multifamily buildings, with 9 soon to be 10 units total. We live and work (we are both artists) in one of the buildings, 45 Henry. We have not had any issues with vacancy in Newburgh, it seems that there are always people looking for a place to live – we usually fill our apartments within 1-2 weeks.

We take pride in the fact that we work very hard on our renovations and restorations and are thorough in selecting tenants that appreciate and will take care of the apartments. We rent everything from a studio to 5 bedroom so have a range of sizes and needs between tenants. In the two years weve been doing this we have only had one eviction in the very beginning and screen heavily as a result of that.

While the initial effort to rehab a 4 or 5 family building all at once is very intense, if you can get through it you’ll find its not difficult as far as management goes.

Spend your time considering how you would set up your rentals – separating utilities, providing good mechanicals, safety and security, quality of the apartment – is worth much more than worrying if you’re apartments will fill. Make it like a place you’d like to live and people will come! Also – in order to break even or make money on a rental building, do your math homework (taxes+utilities+renovation+maintenance VS rental income,) that will help you make a decision based on numbers rather than emotions.

If you have any more specific questions we’d be happy to meet. Ask Cher to put us in touch.

Jon and Nadene

Jon brings up a good point about taxes. Depending on where you buy in Newburgh, you can actually have your assessment reduced after you improve your property and subdivide into apartments. It’s just one of those Newburgh things. Here’s a link for future reference http://www.co.orange.ny.us/content/124/1368/4136.aspx

AMAZING! Just another sample of the positive energy flowing out of NB. Thank you everyone for your helpful perspectives. So much to consider, and I will absolutely message Cher to connect with you both, Jon and Hannah, perhaps in the Spring when we resume our weekend drives to Newburgh. Jon – 45 Henry is beautiful. Just visited courtesy of Google Maps. Cheers – J&N

Send me an email anytime Jon! Also, I’ve featured Jon and Nadene’s house quite a few times here, just do a quick search using their names, or 45 Henry

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Newburgh Vintage Emporium is Expanding with Ware-house