Home to some of the most iconic buildings in the modern world, the Empire State is also a hit with clued-up property flippers hoping to leverage the near-permanent interest in New York real estate.
If you’re ready to make your first foray into real estate investment, it’s hard to look past NY. It’s filled with suburbs and cities that are steadily increasing in value, and there will always be a consistent pool of interested buyers and renters. In this simple guide, we will share a few facts that you should know about flipping houses in NY before you take the first step.
Key House Flipping Stats NY
Median Purchase Price
Median Resale Price
Total House Flips In 2020
Median Household Income
High School Graduation Rate
Average Travel Time To Work
Top 5 Cities for Flipping Houses
- New York City
Top 5 Safest Cities in New York
- Ramapo Town – Safety Score: 91.25
- Yonkers – Safety Score: 88.61
- Greenburgh Town – Safety Score: 88.24
- New Rochelle – Safety Score: 86.41
- White Plains – Safety Score: 86.09
Top 5 Areas with Best Public Schools
Please note – All the statistics in this article are based on 2021 data. You can view the data sources at the bottom of the article.
What You Need To Know About Real Estate In New York
On average, Fix and Flip investors in NY are generating $56,400 in revenue per flip. This suggests that the potential for a successful flip is quite high, but you will need to study the local markets carefully and keep your renovation costs under control in order to maximize your net profit.
Single-family homes are the most sought-after property in this area, and the residential sector continues to perform well overall. The median local property in New York is priced at $327,569, which is reasonably high relative to the rest of the country . More importantly, property prices in NY went up 2.5% over the last year, with analysts predicting that this will rise to 3.7% over the next 12 months.
The top 5 NY real estate markets are New York City, Syracuse, Buffalo, Rochester and Albany. Armed with this knowledge, it might be valuable to assess these areas first, before moving onto cities with less activity.
Simple Tips for Flipping Houses in NY
Home flipping is when an investor purchases a property for the sole intention of rehabbing and reselling it for a profit. This is a lucrative investment strategy – there is the potential to make a profit quickly, and get immediate equity if the investor selects the right property and stays on budget.
Property flipping investors in this area either use their own personal funds or take a loan from a hard money lender. Banks don’t typically fund this type of transaction due to the risk involved, and not wanting to manage a property in case of non-payment.
Home flipping properties are typically older property with character that have the potential to become more valuable through home renovation. Hard money lenders offer investors a variety of benefits such as fast loan approvals and closing. Every real estate investor should aim to keep to the 70% rule , which guides investors to pay only 70% of a property’s after-repair-value (ARV) without the cost of repairs added.
Importantly, you need to send through an offer that has a built-in profit margin, and this is why the 70 percent rule is so valuable. You are effectively establishing a price that factors in repair costs and a healthy profit margin. If the homeowner is unwilling to agree to your offer, you can quickly focus your attention on a more suitable property flipping opportunity.
The final ARV amount dictates a property’s final value after the renovation has been completed. Other factors that influence the value of a property will include the size, where it is located and the prices of other similar homes in the area. If you want to know more, this guide further explains how to calculate ARV .
Hard money lenders like New Silver offer interest rates and terms that cater specifically to these types of real estate projects.
How To Find Houses To Flip In New York
As a real estate investor hoping to flip houses in NY, it should comfort you to know that demand for local properties is high. Affordable housing, in particular, is in high demand with a demographic of buyers that is largely made up of millennials. As a result of this demographic, starter homes and secondary single-family properties are sought-after.
The old adage goes, the three most important things in real estate are location, location, and location. To find a good fix and flip property , you should carefully research the performance of local areas you are interested in. You will want to determine what the average housing prices are, what renovation one would cost you and why it would be attractive to potential buyers. You’ll also want to avoid properties that have bigger structural issues or need major repairs, as these can be costly to repair.
1. Use FlipScout By New Silver
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in NY.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in New York, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.
When equipped with the most recent market-related data, fix and flip investors in New York State can maximize their returns. This is why it is considered one of the best places for flipping homes in the United States.
Ultimately, house flipping is a profitable method of wealth-building for investors, and the NY real estate market assures them of good returns if they choose a property wisely. The local market is projected to continue on an upward trend, and investors can capitalize on this opportunity with funding from New Silver by applying and getting loan approval online in under 10 minutes.
Apply For An Investment Property Loan
If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.