New York City is a great place to live and invest in real estate for many reasons. Real estate flippers can do business more successfully in New York City by using a good house flipping guide.
This city has a strong and growing economy with many industries such as finance, technology, and advertising. Jobs in New York City are expected to grow in the future, leading many new home buyers to look for properties here.
The overall population of New York City has been growing over the past several decades at a rate of 5.1%. New York City contains many neighborhoods great for home buyers to raise families in. There are house flipping and real estate investment groups available to join to learn more about the business and to meet other investors.
Overall, a new flipper should not be afraid to start flipping real estate in New York City, and this guide should help.
Key House Flipping Statistics for New York City
|Population||8,622,698 and 5 year growth rate of 5.1%|
|Income||Average Household Income of $75,368 and 5 year growth rate of 18%|
|Home Value||Average price of 3 bedroom 2 bath home of $680,000 and 5 year growth rate of 59%|
|Cost of Living||New York City is 164 vs 100 for the U.S. cost of living |
|New Home Starts||48,384|
New York City Property Taxes
New York County
For a home worth a median value of $825,200, the median property tax in New York County is $5,873 per year. New York County collects 0.71% of a property’s market value as property tax on average.
New York County has a relatively high median property tax in relation to the United States as a whole.
About 4.38% of New York county resident’s yearly income is paid yearly as property tax on average.
Properties that are considered the primary residence of the taxpayer can possibly get a homestead exemption.
New York City Department of Finance Property Taxes
The median property tax is $2,914 per year in Queens County, New York. This is for homes worth the median value of $479,300. Queens County collects, on average, 0.61% of a property’s assessed market value as property tax.
This amounts to about 3.92% of resident’s yearly income paid as property tax in Queens County.
A homestead exemption may be available for properties considered the primary residence of the taxpayer. A homestead exemption can reduce the appraised valuation of a primary residence before calculating the property tax owed. The result is a lower annual property tax rate for homes that are owner-occupied.
Bronx County, New York residents pay on average $2,653 per year for a home worth the median value of $386,200. This averages to 0.69% of a property’s fair market value..
The average yearly property tax paid by residents in Bronx County is about 3.87% of their yearly income.
Like other counties in New York, a homestead exemption may exist.
$2,903 per year for a home worth the median value of $562,400 is the median property tax for King’s County. On average, this is 0.52% of a property’s fair market value as property tax.
This amounts to about 3.9% of resident’s yearly income.
A homestead exemption may exist in this county.
Other Key Information
New York City faces increasing flooding risk due to storms from the Atlantic Ocean. During 2012, Hurricane Sandy severely affected New York city suburbs, Long Island, Queens, and Breezy Point. This storm caused massive financial damage to some parts of the city’s real estate and it is up to flippers to consider this rising risk.
Also, try the flood zone nyc flood map tool:
The size of a 100-year flood zone depends on how high the sea level is expected to be in a given year. So, as the climate changes and sea levels rise, more land will be flooded with the same storm in a given location. See more in this article:
|New York City Crime Rate||222.2 crime index versus 280.5 U.S. average|
New York City Transportation
Mass transit in New York City accounts for 1/3 of all users of mass transit in the United States, and 2/3 of the nation’s rail riders. Most of NYC mass transit runs 24 hours a day.
The New York City Subway system (MTA) is the largest rapid transit system in the world. New York’s subway system does not shutdown overnight like most cities with subway networks. This is partly due to mass transit being needed for New York City to run efficiently.
New York’s airspace is one of the busiest in the world. The three largest airports in the New York metropolitan area are John F. Kennedy International Airport (JFK), Newark Liberty International Airport (EWR), and LaGuardia Airport (LGA).
The Staten Island Ferry is the world’s busiest ferry route.
Neighborhoods to Flip Houses in New York City
The median home value in this neighborhood is $338,725. This are is good for families, decent public schools and very good nightlife.
Hollis has a median home value of $465,090 and has good public schools, low crime, and good for families.
East Flatbush has a median home value of $395,858. Public schools are good and so is the nightlife. However, crime could be improved in this area.
House Flipping Resources in New York City
Financing Real Estate Deals in New York City
NY Courts Foreclosure Sales
NYC City-Owned Property Auctions and Sales
NY, NY foreclosure listings on Zillow
NY, NY foreclosure listings on Auction.com
King County Foreclosure Auction
City of New York, Queens County Real Estate Auctions
New York City foreclosure auctions often take place at:
New York Supreme Court, the Rotunda. 60 Centre Street, New York, NY 10007
Hudson County Administration Building, 595 Newark Avenue, Jersey City, NJ 07309
Queens Supreme Court, 88-11 to 89-17 Sutphin Blvd, Jamaica, NY 11435
Kings Supreme Court, Adams St., Brooklyn, NY 11201
Bergen County Justice Center 2, Bergen County Plaza, Hackensack, NJ 07601
Richmond County Courthouse, 26 Central Ave., Staten Island, NY 10301
Leroy F. Smith, Jr. Public Safety Building,60 W. Market St., Newark, NJ 07102
NYC Department of Finance Property Taxes
New York City Department of Finance Property Assessments
NYC Planning Zoning search
NYC Planning Zoning Index Map
NYC Planning Zoning Maps
NYC Property Deeds and other documents
Building Code and Permits
New York City House Flipping Tips
Try to keep renovation costs low by having everything ready to go before hand so as to limit delays. Avoid riskier properties and make sure to have an eye out for problem fixes.
Don’t expect flipping houses in NYC to be as easy as what is shown on TV shows.
What to Look Out For
Specifically watch out for homes that have kitchen and bathroom issues. The costs of repairing these are especially high in NYC in comparison to other markets.
Real Estate Flipping and Investing Groups in New York City
New York Real Estate Investors Association (REIA)
Action Investor Network (AIN)
Central New York Investors Association (CNYIA)
East Coast REIA
Freedom First REIA (FFREIA)
Greater Westchester Real Estate Investors Association (GWREIA)
Long island/NYC REI Networking and Marketing Association
Mid-Hudson Valley Real Estate Investment Club
NYC TriState Mixer
Onondaga County Real Estate Investors Club OCREIC
New York City House Flipping Outlook
New York City is in a prime location for people who like a dynamic city atmosphere. The economy of New York City has been strong for a number of years, and the population is growing. Home buyers come from all over the world looking to buy homes in New York City. The home values have increased recently making opportunities for house flippers that want to put in the effort to improve properties. Overall, house flipping in New York City can be lucrative when market conditions are favorable.