Scenic Putnam County, New York, is nestled between the Hudson River and Connecticut. The lush hills and sparkling waters that pepper the landscape are a dream for outdoor enthusiasts and those wanting to escape the hustle and bustle of New York City, just over an hour away. Investors are flipping houses in Putnam County due to its prime location. Thinking about flipping homes in the area? Here’s everything you need to know to get started.
2023 Putnam County housing market analysis
The housing market in Putnam County is neutral. This means neither the buyer nor the seller has an advantage, so prices are reasonable. The county was in a seller’s market in April of last year.
As of April of 2023, the median sale price in Putnam County was $449,987, up by 3.4% from last year. However, in previous years homes typically took 67 days to sell, but this year it is 83 days on average.
In March 2023, there were 385 homes on the market. It jumped to 412 in April, an increase of 7%. The number of houses sold also increased slightly from one month to the next, with 61 selling in March and 67 selling in April.
The median home prices have also increased in counties close to Putnam. In nearby Fairfield County, the median sold price rose 7.2%, and in Orange County, it rose 6.9%.
Best areas to flip in Putnam County
Cold Spring area
Cold Spring is in the western section of Putnam County on the Hudson River, along with the towns of Philipstown and Putnam Valley. Nature enthusiasts will find many parks and hiking trails in the nearby Highland State Park Preserve to the north.
Carmel area
Carmel is in the middle section of Putnam County and is more rural than others. The towns of Mahopac, Mahopac Falls, and Kent are also in the mid-section. This region's highlights and great fishing spots are Lake Carmel, Lake Gleneida, and the West Branch Reservoir.
Brewster area
Brewster is in the eastern section of Putnam County, bordered by Connecticut. Patterson and Southeast are two other towns in this region. The area hosts Lake Tonetta, the Croton River, and the popular Thunder Ridge Ski area.
How to find flips in Putnam County
The saying goes “buy the ugliest house on the best block,” but how do flippers find that diamond in the rough? Many flippers look for foreclosed homes, short sales, and abandoned houses. Here are a few of the methods they use.
MLS
The MLS site is exclusive to people in the real estate field and is one of the best ways to find homes. If you do not have a real estate license and do not plan to get one, find an excellent real estate agent to work with you. Not only can they help you find a home to flip, but they can also help you list and market it when it is time.
Bank or lender websites
Banks call the houses in stock Real Estate Owned properties or REOs. To find them search online using the lender’s name and then REO, e.g., Wells Fargo REO. Some banks use brokerage firms instead. Contact the bank for more information.
Government websites
Some government sites like HUD list foreclosed properties online. Search HUD foreclosed properties to locate them.
County or city websites
The local county or city tax assessor’s or tax collector’s office should have a list of homes. Many have the information online. Search for the county or city office and then for tax forfeitures, delinquent tax rolls, or tax sale lists.
Auctions
Search for auctions online or ask the county assessor’s office how to obtain a list of upcoming auctions. Before bidding on a property, search for liens so you will not get stuck owing more than you think.
Drive
Drive around town looking for vacant houses. Properties with overgrown lawns or buildings in disrepair are signs that may indicate foreclosure. Once you find one, search online to see if the home is available for purchase.
Determining if a house is a good deal
You will only know if the price of a home is a good deal or not if you have a reference point. Conduct online research for information on the local housing market and home values.
Flippers should pay, at most, 70% of the home's value after renovation minus the costs. This is called the ARV or after-repair value. Most flippers follow the unwritten rule of 70% to determine if a house is worth the investment.
For example, suppose that once a house is renovated, you can list it at $300,000. That means the ARV is $300,000. Follow the 70% rule to determine the maximum you should pay.
Multiply the ARV (in this case, $300,000) by 70%
$300,000 x 0.70 = $210,000
Suppose you plan to spend $50,000 on renovations and repairs, so deduct that from $210,000.
$210,000 - $50,000 = $160,000
$160,000 is the maximum you should spend to buy the house. Ideally, you want to pay lower. If you pay $160,000 for the home and do not spend more than $50,000 to renovate, your profit will be $90,000 before other expenses like closing costs, taxes, etc.
For a more thorough look, search online for a house flip calculator to calculate other expenses.
Financing flips in Putnam County
Flippers finance homes through various methods. A flipper rarely goes through the normal application process for a conventional loan. Many banks find flipping too risky, and the process takes too long to be worth it for most flippers.
Some flippers take out a HELOC, a home equity line of credit on their home. Many take out hard loans from alternative lenders secured by physical property. Hard money loans are short-term with higher interest rates than traditional loans.
Bank on Michael!
There are so many things to know and do when it comes to flipping houses. It can be quite a challenge. That is why many flippers rely on an expert in real estate to make their jobs easier.
Enter Michael Kahns, a consummate real estate professional and associate broker with Team Banx. Michael knows Hudson Valley, NY, real estate because he lives and works here. He is passionate about helping people increase their real estate portfolio and making the process smooth as silk. If you need someone you can rely on, you can bank on Michael. Contact Michael today.
