An old college friend of mine, June, recently moved into Park Slope—the neighborhood where I grew up and actually started my career in real estate investing. When we met for coffee over at Polo Caffe the other day, she marveled at how different this pocket of town was from what she’d grown up believing about New York City boroughs like Brooklyn. Park Slope was eclectic and cool, but also down-to-earth and family-friendly. Having lived and worked on the West Coast for so long, it was eye-opening for her to see how the area had apparently changed over the years. And, she wondered whether there were any up and coming neighborhoods left in Brooklyn considering how much development had occurred. If I hadn’t been investing for as long as I have, I might have wondered the same. But, when you’ve got your finger on the pulse of what’s happening in real estate like I do, you always know where to look for deals.
Neighborhoods in Brooklyn That Are Up and Coming
Even if you don’t live in Brooklyn, it’s probably been on your radar for years as the New York City borough to buy, renovate, and sell or rent homes in—as long as you can afford it. You may have even thought that had you started investing in Brooklyn real estate years ago you’d be positioned to continue investing just about anywhere. To some degree, that could be true. But, before you kick yourself too hard for not buying property in Brooklyn while it was still in transition, keep in mind that there are always going to be pockets that provide opportunities to grow your real estate portfolio. So, while some areas may be hot because crime rates are low and the pride of ownership is high, they may be poised to get hotter and push home prices, and your potential returns, higher. For a long-time real estate investor like me, room for growth is the definition of up-and-coming—particularly in New York. And, here’s where I think Brooklyn fits that definition:
- Flatbush. Flatbush made the media rounds as an up-and-coming neighborhood in Brooklyn last year, but there’s still room for this culturally and economically diverse enclave to grow. Median home list prices remain steadily on the rise, yet it’s one of the more affordable neighborhoods within the borough. Plus, it’s home to increasingly better schools and a rapidly diminishing crime rate. These factors make Flatbush attractive to both families and single, young professionals who are priced out of buying elsewhere in New York. That provides you an opportunity to meet their demand and take advantage of the surge in potential sales that may be just around the corner.
- Bay Ridge. Also a favorite from last year, Bay Ridge makes the list again, partly because median home sales prices have almost tripled in the last year, according to Realtor.com, and are likely to keep rising. That puts this big city neighborhood with a small-town feel out of range for many homebuyers, but that hasn’t dampened its appeal for those who can afford it. And, it’s no wonder with high safety ratings, access to great schools, and a half-hour bus ride into Manhattan. There are a lot of mom-and-pop establishments still standing, too, to keep serving up residents a little old-fashioned charm. For the next year at least, Bay Ridge should stay on your investment map since it remains on the minds of buyers.
- Bedford-Stuyvesant. Bedford-Stuyvesant, or Bed-Stuy, has been gentrifying for years but hasn’t yet moved beyond its up-and-coming status—which is good news for you. Known both for its Victorian brownstones and townhomes that have been split into relatively inexpensive units, Bed Stuy attracts young homebuyers looking for a stable community to start a family as well as recent college grads who need access into Manhattan at a lower-than-average cost to rent. And, since Millennials are the largest segment of homebuyers in the country, it might do you well to help meet their Brooklyn housing needs. But, it could do you one better to buy and hold in Bed-Stuy since the area could transition into one of the best places to buy rental property in New York sooner rather than later.
- Clinton Hill. Another Brooklyn hot spot, Clinton Hill is still far from being too hot to invest in. Keep in mind, that could change in another year or two. The neighborhood is a surprising mix of old-timers who’ve lived there for years and newbies who want to live in a hip college-like town with trendy bars and cool architecture. Demand is high and will undoubtedly push median home list prices even higher than the impressive numbers they’re now averaging. If you’re wondering why this neighborhood is considered up-and-coming, consider that home prices have continued to trend upward by almost 28% year-over-year with no sign of slowing down. So, if you can get in on the investing action now, you could potentially sell for very good returns once Clinton Hill makes everyone’s list.
When building your real estate investment business in a competitive city, like New York, it’s helpful to know which areas, like these four Brooklyn neighborhoods, are poised for growth. But, it’s even more critical to your success as an investor to have an effective strategy for finding the best deals no matter which neighborhood, or borough, you invest in.
Position Yourself to Succeed in Neighborhoods Poised for Growth
After June and I caught up over coffee, she expressed an interest in becoming a real estate investor, too—especially if there were still opportunities to find good deals near home. But, I told her that in order to locate the best deals, she should consider joining the HomeVestors® team as an independently owned and operated HomeVestors® franchisee. As a franchisee myself, distressed homeowners all over Brooklyn find their way to me thanks to a national ad campaign that’s been successfully running on TV, radio, and print for decades, “We Buy Ugly Houses®.” So, even in more established neighborhoods, like Park Slope, there’s a chance I’ll acquire a good home that becomes a great investment. It’s not a bad position to be in and an even better one for growing your portfolio.
Change how you connect with leads and shift yourself into a position of growth. Contact HomeVestors® to become an up-and-coming Brooklyn franchisee today!
Each franchise office is independently owned and operated.