Syracuse NY Area-A decent market to invest in?

Question

Hi all! My husband and I are looking to purchase a house in the Syracuse area and rent it out to a long term (non-college) tenant. We are looking in Syracuse because I am from there (currently in the military) and familiar with the area. We are also interested in the surrounding towns/cities of Syracuse. Any advice on potential growing areas in Upstate NY? Also any advice on how to best factor in the yearly tax payment for NY houses while still generating a small cashflow? Long post short, just looking to learn from those who have bought a house in the Syracuse area and see if they have any tips/trick on how to best go about doing so. Thanks!

Fan Bi · Answer

@Pat Goodyear @Patrick DiDomenico @Mike Alt

From doing a few hours of research, it looks like you can get a fairly stabilized building at $45,000 a door that has government-backed (subsidized) voucher for $900 a month? Even with flat asset prices and slightly high property taxes, there seems to be plenty of margin for cash flow. What am I missing?

Mike Alt · Answer

I still actively invest in Syracuse because I already have the network and connections and affordable property management in place there.  Trustworthy property managers and contractors are few and far between, so when you find them, treat them right and keep them happy. (duh)

Money can be made, but there are better markets.  Property management and upkeep and taxes get most deals pretty close to 0 cashflow, unfortunately, unless you get a killer deal or do a significant value add to minimize capex.

Winters are brutal on the aging housing stock.

Tenant laws in NY have recently swung and make it extremely difficult to evict tenants for non-payment.

Combined Prop taxes are around 3.5% in the city.

NY legislative body mostly interested in passing regressive (progressive) policy and making the situation worse.

Bryan Cavellier · Answer

@Leah McNell pick a neighborhood that is not in the city system school district. Also I would suggest getting close to the hospitals so you draw in those tenants. You can make money amywhere with real estate as long as you buy well, dont let people discuriage you... Be patient. DM me if you need anything else!

Pat Goodyear · Answer

@Leah McNell i have 16 properties in Syracuse and have been doing it since 1996.  Some things to think about:

Are you going to live in Syracuse? Maybe buy a 2 family and rent out the other side?

Are you buying with cash or need a mortgage? All those horrible closing loan costs are even worse in income property.

Do you have a good nest egg? I got a call on Tues that my tenant's fridge see. A new one is over $500.

As far as DeWitt, etc the taxes dont justify the extra rent. I made that mistake, taxes on one property as $6000!

Lastly, the new laws. While before jine 2019 I could get someone out within 1 month. Now it is minimum 3 months. Can you afford to carry the property for 3 months with no income?

Just some things to consider.

Logan Graham · Answer

I am not 100% sure about the Syracuse area for buying a house but if you do make sure you understand the NY landlord laws. NY state is very tenant friendly and will eat all of your profits if you don't know the law. I live in Rochester and work with these laws everyday. It's not impossible to make money here you just have to be smart about it.

Geoffrey Clark · Answer

@Fan Bi

What are these government subsidized vouchers? Where can I learn more about them?

If a tenant can not pay rent and must be evicted, how does one get payment via vouchers instead?

Leah McNell · Answer

Mike Alt and Rob Sawyer- Thank you! Very valuable info here!

Rob Sawyer · Answer

@Leah McNell - @Pat Goodyear has been investing in the area and is very knowledgeable, plus lives here and understands the nuances.

I recommend communicating with her more thoroughly about the pros and cons are  if you haven't already, before making a final decision.

I run a local Meetup but do not yet have the experience Pat does, hence my suggestion.

Food for thought...

Leah McNell · Answer

Love this insight. Real property owners renting to others in Syracuse is just what we were looking for. Thank you all for your inputs. We will continue to analyze houses in Syracuse, but may need to look elsewhere.

Cory Finniss · Answer

I am moving my investments out of syracuse. Taxes , politicains, National grid, working with the city. Tenant laws, type of tennant. All reasons to not invest in upstate NY.

Syracuse NY Area-A decent market to invest in?

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