New York City House Flipping Guide

New York City House Flipping

New York City is a great place to live and invest in real estate for many reasons. New house 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 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 house flipping in New York City, and this guide should help.

Key House Flipping Statistics for New York City

Population8,622,698 and 5 year growth rate of 5.1%
IncomeAverage Household Income of $75,368 and 5 year growth rate of 18%
Home ValueAverage 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
index
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

https://www1.nyc.gov/site/finance/taxes/property.page

Queens County

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

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.

Kings County

$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

Flood Zones

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.

https://www1.nyc.gov/site/floodmaps/maps/your-risk.page

Also, try the flood zone nyc flood map tool:

https://www.floodzonenyc.com/?_ct=6qoxec4670uk

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:

https://www.businessinsider.com/new-york-city-flood-map-2020-2050-2015-2

Crime Rate

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.

Subways

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.

Airports

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).

Ferries

The Staten Island Ferry is the world’s busiest ferry route.

Neighborhoods to Flip Houses in New York City

Jamaica

The median home value in this neighborhood is $338,725. This are is good for families, decent public schools and very good nightlife.

Hollis

Hollis has a median home value of $465,090 and has good public schools, low crime, and good for families.

East Flatbush

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

Foreclosure Auctions

NY Courts Foreclosure Sales

http://www.nycourts.gov/courts/2jd/kings/civil/foreclosuresales.shtml

NYC City-Owned Property Auctions and Sales

https://www1.nyc.gov/nyc-resources/service/2384/city-owned-property-auctions-and-sales

NY, NY foreclosure listings on Zillow

https://www.zillow.com/new-york-ny/foreclosures/

NY, NY foreclosure listings on Auction.com

https://www.auction.com/residential/NY/New-York_ct/active_lt/resi_sort_v2_st/y_nbs/

King County Foreclosure Auction

https://www.kingcounty.gov/depts/finance-business-operations/treasury/foreclosure.aspx

City of New York, Queens County Real Estate Auctions

http://www.queenscountypa.com/upcoming-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

Tax Assessor

NYC Department of Finance Property Taxes

https://www1.nyc.gov/site/finance/taxes/property.page

New York City Department of Finance Property Assessments

https://www1.nyc.gov/site/finance/taxes/property-assessments.page

Zoning

NYC Planning Zoning search

https://www1.nyc.gov/site/planning/zoning/about-zoning.page

NYC Planning Zoning Index Map

https://www1.nyc.gov/site/planning/zoning/index-map.page

NYC Planning Zoning Maps

https://www1.nyc.gov/site/planning/zoning/zoning-maps.page

Title Searches

NYC Property Deeds and other documents

https://www1.nyc.gov/nyc-resources/service/2266/property-deeds-and-other-documents

Building Code and Permits

https://www1.nyc.gov/site/buildings/index.page

New York City House Flipping Tips

Do’s

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.

Dont’s

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)

https://www.meetup.com/New-York-Real-Estate-Investors-Association/

Action Investor Network (AIN)

www.ActionInvestorsNetwork.com

Central New York Investors Association (CNYIA)

www.cnyia.org/

East Coast REIA

www.EastCoastREIA.net

Freedom First REIA (FFREIA)

www.ffreia.com

Greater Westchester Real Estate Investors Association (GWREIA)

www.gwreia.com

LIREIA

www.lireia.com

Long island/NYC REI Networking and Marketing Association

https://www.meetup.com/NYEpicREI/

Mid-Hudson Valley Real Estate Investment Club

www.mhv-reia.com

NYC TriState Mixer

www.TriStateMixer.com

Onondaga County Real Estate Investors Club OCREIC

ocreic.org/

WNYREI

www.wnyrei.com

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.

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