Investing in Upstate NY?

Member since 2024 · 3 posts · 7 votes

Hi BP Community,

My husband and I have been preparing to begin our real estate investment journey, and we could use some insight. We've essentially ruled out investing in our local community because we can't seem to find a good deal (we live about 1.5 hours north of NYC, so purchase prices are very high), so we are considering (1) investing out of state; or (2) investing in some northern NY localities (Syracuse, Albany, Rochester, etc.). We would love to hear from anyone who current invests in any of the northern NY cities/towns about how their experience has been, what the pros/cons are to these markets, general thoughts. If you have specific thoughts about any particular area, we would love to hear about that too. It would be our preference to invest in upstate NY because we could drive there relatively easily, but if there are better deals elsewhere, we would be more inclined to go with option (1).

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Nadeem Alamgir

Real Estate Agent · Member since 2023 · 831 posts · 577 votes

Hey Bethany, I hear you on the high home prices in NY. I grew up there too. I'm now based in Ohio, specifically Cleveland, where properties range from $100K to $300K. The rental market is strong, and overall, it's a landlord-friendly area.

Not all rainbows, there are some downsides, like slower appreciation, harsh winters, and issues with older homes.

If you can invest locally, that’s great, but if not, there are definitely other markets that can support your goals.

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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
Quote from @Account Closed:

Hi BP Community,
My husband and I have been preparing to begin our real estate investment journey, and we could use some insight. We've essentially ruled out investing in our local community because we can't seem to find a good deal (we live about 1.5 hours north of NYC, so purchase prices are very high), so we are considering (1) investing out of state; or (2) investing in some northern NY localities (Syracuse, Albany, Rochester, etc.). We would love to hear from anyone who current invests in any of the northern NY cities/towns about how their experience has been, what the pros/cons are to these markets, general thoughts. If you have specific thoughts about any particular area, we would love to hear about that too. It would be our preference to invest in upstate NY because we could drive there relatively easily, but if there are better deals elsewhere, we would be more inclined to go with option (1).

Hi @Account Closed, welcome to the BP Forum! What type of properties are you seeking? I'm assuming it would a SFR or 2-4 MF, is that correct? And what is your price range and are you looking for turn-key properties or something along the lines of a "fixer upper"?
[email protected]
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Account Closed
OP
Member since 2024 · 3 posts · 7 votes
1y
I'm looking for a 2-4 MF. I currently have about $50k in cash and am looking to spend no more than $250k on my first property (less depending on the area, number of units, etc.), inclusive of any renovation costs. I would be open to a fixer upper. I've been primarily looking at places that need some work.
As some background, our goal is to acquire 100 doors in the next 15-20 years.
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Nadeem Alamgir
Real Estate Agent · Member since 2023 · 831 posts · 577 votes
1y
Hey Bethany, I hear you on the high home prices in NY. I grew up there too. I'm now based in Ohio, specifically Cleveland, where properties range from $100K to $300K. The rental market is strong, and overall, it's a landlord-friendly area.

Not all rainbows, there are some downsides, like slower appreciation, harsh winters, and issues with older homes.

If you can invest locally, that’s great, but if not, there are definitely other markets that can support your goals.
4 Reply
Mike PaolucciBusiness Member
Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 499 posts · 553 votes
1y
Quote from @Account Closed:

Hi BP Community,
My husband and I have been preparing to begin our real estate investment journey, and we could use some insight. We've essentially ruled out investing in our local community because we can't seem to find a good deal (we live about 1.5 hours north of NYC, so purchase prices are very high), so we are considering (1) investing out of state; or (2) investing in some northern NY localities (Syracuse, Albany, Rochester, etc.). We would love to hear from anyone who current invests in any of the northern NY cities/towns about how their experience has been, what the pros/cons are to these markets, general thoughts. If you have specific thoughts about any particular area, we would love to hear about that too. It would be our preference to invest in upstate NY because we could drive there relatively easily, but if there are better deals elsewhere, we would be more inclined to go with option (1).

Welcome to BP! I was in a similar situation in 2021 while living in San Francisco. I ended up investing in Ohio and haven't looked back since.
Can't say much about upstate NY except my father grew up in Albany and attended Syracuse University. I'll echo what Nadeem mentioned about investing locally. If you can find deals that makes sense then that's the best route. Unfortunately that wasn't the case for me and so here I am in Columbus, Ohio.
Columbus presents a little different type of investing from Cleveland but you can still find good properties that will give you some cashflow each month (not life changing but with your goal of 100 doors then it'll add up eventually). The tradeoff is the fact that you'll see more appreciation out of Columbus than you will see from most of the other parts of Ohio.
I'd also recommend checking out Dayton and Cincy.
You'll also want to make sure you look into a good property manager since they'll be your biggest help to stabilize and manage the day to day operations of owning property.
Happy to answer any questions & good luck with your investing journey!
[email protected]614-892-9184
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
1y
@Account Closed
i'd stay as close to where you live as possible. no reason to go out of state when you have the metros you mentioned close by. deals will be what you make of them - there is nothing magic about going thousands of miles away just for a slightly lower price point. in fact, that gets new investors burned all the time.
3 Reply
Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
Quote from @Account Closed:

I'm looking for a 2-4 MF. I currently have about $50k in cash and am looking to spend no more than $250k on my first property (less depending on the area, number of units, etc.), inclusive of any renovation costs. I would be open to a fixer upper. I've been primarily looking at places that need some work.
As some background, our goal is to acquire 100 doors in the next 15-20 years.

Hey @Account Closed! It's great to have goals, but how did you arrive at 100 doors over such a long period of time? I would recommend interim goals to help you achieve the long-term goal.
[email protected]
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Nick Rutkowski
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
1y
@Account Closed

Welcome to BP! I am your Upstate NY expert/ connect to help you get started up here in the great ol' area of Upstate NY! You're picking a great time to start investing, the area is becoming a hot spot for investors.

Buffalo is predicted to be #1 2025 Small City Housing Market of the year. Syracuse is welcoming Micron - a 100 Billion dollar investment into the area over the next 20 years. Rochester is kind of in the middle, not as much action but still great deals. Binghamton is starting to see new business coming in too.

Where I live Ithaca, NY prices are going through the roof. New development in the city are kicking out people. Rents in the surrounding towns are raising rapidly. I paid 195k for my last property in Groton,NY (a surrounding town) and it rents out $3175/mo. Cha-Ching.

Get in touch with Steph, too. She can get your search started in the areas I mentioned above! @Stephanie Jacobson
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Justin Roland
Developer · Albany, NY · Member since 2016 · 30 posts · 14 votes
1y
Quote from @Account Closed:

I'm looking for a 2-4 MF. I currently have about $50k in cash and am looking to spend no more than $250k on my first property (less depending on the area, number of units, etc.), inclusive of any renovation costs. I would be open to a fixer upper. I've been primarily looking at places that need some work.
As some background, our goal is to acquire 100 doors in the next 15-20 years.

Hi Bethany,
I saw your post and wanted to reach out because I think I can be a great resource for you as you embark on your real estate investment journey.
I’m an investor/syndicator, and I was born and raised in Albany, so I’m very familiar with the Upstate NY markets. My wife is also a realtor with 8 years of experience, and together we currently own 10 doors. We’ve been actively investing in the Upstate NY region, and I’d love to share some insights about the local market, especially areas like Albany, Schenectady, and Troy/, which can offer great opportunities for investors.
In terms of your budget and goals, there are definitely deals in Upstate NY, and with the right knowledge and strategy, it can be a very lucrative place to invest. If you're interested in learning more about the market or want to discuss potential opportunities, feel free to reach out. I’d be happy to help you find the right fit for your first property. Also ill have my wife reach out to you shes also on BP. We're rarely on here lol
Looking forward to hearing from you!
Best regards,
Justin Roland
Owner | JusMoney Enterprises

2 Reply
Justin Roland
Developer · Albany, NY · Member since 2016 · 30 posts · 14 votes
1y
Id also recommend if this is your first investment property your buying to have it as close to home as possible. It can be a nightmare investing out of state without the right boots on the ground. Just in my opinion, Im pretty sure there are successful out of state investors but i just dont recommend it being your first buy just thought id add that!
0 Reply
Chynna Walters
Real Estate Agent · Albany, NY · Member since 2016 · 21 posts · 10 votes
1y
Hi Bethany ,

You're taking a smart approach by considering investing in upstate Ny. I have been a licensed realtor for 8 years, i also invest myself. I know the market pretty well.

Albany has a mix of appreciation and cash flow opportunities, steady rental market due to state /government jobs and colleges.

I would love to help you out with your investing journey.
Best , Chynna Walters
0 Reply
Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
1y
Hello @Account Closed congrats on getting started on your real estate journey. As a Ny'er We chose to invest completely OOS as Ny landlord tenant laws are not the best if you are considering holding long term. The prices in the markets we looked at i.e. troy, Schenectady and Albany all had great prices and rents were inline but kept coming back to "what if the tenant doesn't pay". I think you have many great opportunities in that part of NY but I would say develop some metrics and measure markets according to your metrics. Here were some of our metrics for long term holding.
All the best!!!
1. Price to rent ration of 2%
2. Favorable landlord tenant laws
3. Availability of Multi-Family
4. Ability to build a team
5. Ability to find properties off market
6. Ability to write our own contracts
1 Reply
NA NA
Member since 2025 · 6 posts · 3 votes
1y
Maybe look at older properties with lower mortgage ? Where rent can cover all these expenses. Or putting 20% down in a conventional loan so you can also avoid PMI.
0 Reply
Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
1y
Quote from @Account Closed:

Hi BP Community,
My husband and I have been preparing to begin our real estate investment journey, and we could use some insight. We've essentially ruled out investing in our local community because we can't seem to find a good deal (we live about 1.5 hours north of NYC, so purchase prices are very high), so we are considering (1) investing out of state; or (2) investing in some northern NY localities (Syracuse, Albany, Rochester, etc.). We would love to hear from anyone who current invests in any of the northern NY cities/towns about how their experience has been, what the pros/cons are to these markets, general thoughts. If you have specific thoughts about any particular area, we would love to hear about that too. It would be our preference to invest in upstate NY because we could drive there relatively easily, but if there are better deals elsewhere, we would be more inclined to go with option (1).
Hi Bethany, if you're investing in NY, unfortunately the price range is crazy high and you won't find any cash flow. I do recommend taking a look at Columbus Ohio! A lot of clients I work with in NY invest here because it's one of the hottest real estate markets in the US and has some of the best macroeconomics - population growth, job growth, and companies moving and developing here. For example Intel headquarters, Google, FB, Amazon, Nationwide, Honda, (recently Anduril announced another 4k jobs to Columbus). Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and there's amazing appreciation potential. Lastly, the price point is still very cheap here in the sense that you can still find investment deals that hit the 1% rule for 120-180k! Happy to connect and answer any questions you have!
[email protected]614-300-7535
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- Matthew Irish-JonesBusiness Member
  Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
  1y
  Quote from @Jimmy Lieu:
  
  Quote from @Account Closed:
  
  Hi BP Community,
  My husband and I have been preparing to begin our real estate investment journey, and we could use some insight. We've essentially ruled out investing in our local community because we can't seem to find a good deal (we live about 1.5 hours north of NYC, so purchase prices are very high), so we are considering (1) investing out of state; or (2) investing in some northern NY localities (Syracuse, Albany, Rochester, etc.). We would love to hear from anyone who current invests in any of the northern NY cities/towns about how their experience has been, what the pros/cons are to these markets, general thoughts. If you have specific thoughts about any particular area, we would love to hear about that too. It would be our preference to invest in upstate NY because we could drive there relatively easily, but if there are better deals elsewhere, we would be more inclined to go with option (1).
  Hi Bethany, if you're investing in NY, unfortunately the price range is crazy high and you won't find any cash flow. I do recommend taking a look at Columbus Ohio! A lot of clients I work with in NY invest here because it's one of the hottest real estate markets in the US and has some of the best macroeconomics - population growth, job growth, and companies moving and developing here. For example Intel headquarters, Google, FB, Amazon, Nationwide, Honda, (recently Anduril announced another 4k jobs to Columbus). Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and there's amazing appreciation potential. Lastly, the price point is still very cheap here in the sense that you can still find investment deals that hit the 1% rule for 120-180k! Happy to connect and answer any questions you have!
  
  NY is a big state, you can't find cash flow in any of the roughly 8,500,000 housing units available? That is a bold statement.
  Irish Jones Realty4.947 Reviews
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Peter W.
Member since 2020 · 351 posts · 329 votes
1y
Well, I'll tell you what I think. I think the idea of owning 100 doors is crazy. I would probably start in Albany and then 1031 into 2-3 multifamily buildings in the city, but you'll do you and I'll do me.
I live and invest in east side of Rochester, NY, there is a shortage of houses due to 20 years of negative population growth followed by significant growth post pandemic. This is both to rent and to buy. I think the story across a lot of the upstate is similar, net exodus from 2000-2020, followed by a surprising increase in prices and population growth following the pandemic as people (and companies) searched for affordability. I know we have been positioned as the transgender capital of the US in large part because NYC is too expensive. While I love upstate New York, I get the opinion that most people are here because of work or family and would rather live somewhere warmer. So, I think you have a risk factor in upstate New York that you don't get in most other areas (it's not where most people would choose to live).
I think upstate New York one of the few areas in the country you can cash flow in B areas with 80% downpayment, so that's nice--in terms of deals, I think the numbers still work out at market prices.
Finally, the property taxes are very high in upstate New York. On my properties about half of the mortgage payments go into escrow for taxes. I pencil in 4.5% when I underwrite my deals.
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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
One person's crazy is another person's sanity!
[email protected]
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Stephen SchmittBusiness Member
Real Estate Agent · Liverpool, NY · Member since 2019 · 111 posts · 72 votes
1y
Hello Bethany, I’m in Syracuse. The properties here are cash flowing, and appreciation has been over 10% and will likely continue due to the Micron project. Syracuse has been lower priced entry than most of upstate, however we are catching up fast. The taxes are higher, the properties are older, however we account for those issues. Due to lack of available apartments rents continue to climb.
[email protected]315-457-7170
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Account Closed
OP
Member since 2024 · 3 posts · 7 votes
1y
Quote from @Peter W.:

Well, I'll tell you what I think. I think the idea of owning 100 doors is crazy. I would probably start in Albany and then 1031 into 2-3 multifamily buildings in the city, but you'll do you and I'll do me.
I live and invest in east side of Rochester, NY, there is a shortage of houses due to 20 years of negative population growth followed by significant growth post pandemic. This is both to rent and to buy. I think the story across a lot of the upstate is similar, net exodus from 2000-2020, followed by a surprising increase in prices and population growth following the pandemic as people (and companies) searched for affordability. I know we have been positioned as the transgender capital of the US in large part because NYC is too expensive. While I love upstate New York, I get the opinion that most people are here because of work or family and would rather live somewhere warmer. So, I think you have a risk factor in upstate New York that you don't get in most other areas (it's not where most people would choose to live).
I think upstate New York one of the few areas in the country you can cash flow in B areas with 80% downpayment, so that's nice--in terms of deals, I think the numbers still work out at market prices.
Finally, the property taxes are very high in upstate New York. On my properties about half of the mortgage payments go into escrow for taxes. I pencil in 4.5% when I underwrite my deals.

Yea not really tracking why my goal is "crazy." Many people own more than 100 doors... but to each their own. I appreciate the input nonetheless!
3 Reply
Peter W.
Member since 2020 · 351 posts · 329 votes
1y
Quote from @Account Closed:

Quote from @Peter W.:

Well, I'll tell you what I think. I think the idea of owning 100 doors is crazy. I would probably start in Albany and then 1031 into 2-3 multifamily buildings in the city, but you'll do you and I'll do me.
I live and invest in east side of Rochester, NY, there is a shortage of houses due to 20 years of negative population growth followed by significant growth post pandemic. This is both to rent and to buy. I think the story across a lot of the upstate is similar, net exodus from 2000-2020, followed by a surprising increase in prices and population growth following the pandemic as people (and companies) searched for affordability. I know we have been positioned as the transgender capital of the US in large part because NYC is too expensive. While I love upstate New York, I get the opinion that most people are here because of work or family and would rather live somewhere warmer. So, I think you have a risk factor in upstate New York that you don't get in most other areas (it's not where most people would choose to live).
I think upstate New York one of the few areas in the country you can cash flow in B areas with 80% downpayment, so that's nice--in terms of deals, I think the numbers still work out at market prices.
Finally, the property taxes are very high in upstate New York. On my properties about half of the mortgage payments go into escrow for taxes. I pencil in 4.5% when I underwrite my deals.

Yea not really tracking why my goal is "crazy." Many people own more than 100 doors... but to each their own. I appreciate the input nonetheless!

I'm aware--one of my neighbors is one of them. I don't enjoy being a landlord--I enjoy being an engineer (my day job), so having more than a handful seems crazy.
0 Reply
Gavin SoutoPro Member
Investor · NY · Member since 2024 · 11 posts · 3 votes
1y
I suggest finding a way to lower the bar or "barrier of entry" in your local market. There's many ways to get into a deal with low to no money down! I'm also an investor from New York.
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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
@Hector Escobar Watch out for the forum moderators...they'll probably say this is self promotion and/or advertisement and it should be posted on in the Classifieds section.
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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
Quote from @Gavin Souto:

I suggest finding a way to lower the bar or "barrier of entry" in your local market. There's many ways to get into a deal with low to no money down! I'm also an investor from New York.

@Gavin Souto What are your suggestions to @Account Closed about getting into a deal with "low to no money down" without house hacking?
[email protected]
1 Reply
Sandra May
deals in PA & NH · Member since 2016 · 10 posts · 8 votes
1y
Food for thought: Scranton, PA is just as close or closer that Albany depending on your locale and probably more landlord friendly.
2 Reply
Gavin SoutoPro Member
Investor · NY · Member since 2024 · 11 posts · 3 votes
1y
Quote from @Jaycee Greene:

Quote from @Gavin Souto:

I suggest finding a way to lower the bar or "barrier of entry" in your local market. There's many ways to get into a deal with low to no money down! I'm also an investor from New York.

@Gavin Souto What are your suggestions to @Account Closed about getting into a deal with "low to no money down" without house hacking?

There are many strategies, BRRRR, subto, seller finance, fix and flip, live and flip, and land splitting are just a few off the top of my head. All methods are achievable with the right knowledge and mindset.
1 Reply
Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
1y
Quote from @Account Closed:

Hi BP Community,
My husband and I have been preparing to begin our real estate investment journey, and we could use some insight. We've essentially ruled out investing in our local community because we can't seem to find a good deal (we live about 1.5 hours north of NYC, so purchase prices are very high), so we are considering (1) investing out of state; or (2) investing in some northern NY localities (Syracuse, Albany, Rochester, etc.). We would love to hear from anyone who current invests in any of the northern NY cities/towns about how their experience has been, what the pros/cons are to these markets, general thoughts. If you have specific thoughts about any particular area, we would love to hear about that too. It would be our preference to invest in upstate NY because we could drive there relatively easily, but if there are better deals elsewhere, we would be more inclined to go with option (1).

Its interesting there are no good deals 1.5 hours north of NYC. With Rye, White Plains, Patterson, Newburgh, Red Hook, etc... all within that area I would think there would be some options.
Most of the rust belt cities are similar, Buffalo, Rochester, Syracuse, Albany, etc... I like Buffalo because I am biased, but the advice is the same.
There is old housing stock, the asset condition is extremely important. You need to know what you are buying, how old the mechanicals are, where and how to look for asbestos, lead, etc... Location is more important than asset condition, the C and F class areas are all the same no matter what city you are in.
Prioritize Location and Asset condition over cash flow and you can get some cash flow. Prioritize cash flow over location and asset condition and you will get a headache!
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