Where to invest upstate (and New York state logistics)

Question

Hi there,

I'm an investor who's successfully owned a multi-family duplex in Detroit for 4 years, while living in New York (city). It's gone well, I've found a reliable handyman and cleaner for when things come up (older home, but in good shape) and have had reliable good tenants (and some turnover in the upstairs unit I've managed to fill from afar or going for annual visit).

Instead of investing in Detroit again, I'm thinking about investing in upstate New York and building my portfolio here. It's closer to where I live, there are charming old towns with beautiful old homes (I like fixing them up, doing a lot of cosmetic work, don't mind rougher areas to an extent).

My two main questions are:

1. Which markets would you recommend upstate for an out of town investor (to find reliable contractor, and a steady stream of tenants), and deals under $120k that might need some work.

Thinking about Binghamton, Elmira, Rochester, Buffalo, Malone, Rome, and very open to other areas (also open to Pennsylvania/Pittsburgh).

2. What are some legal/logistical things that are crucial for a potential investor and landlord to know about investing/owning in New York state that I might have overlooked (or in any of these markets in particular)? Michigan has been straightforward.

Any insights are appreciated, and looking to take a roadtrip around next month and purchase something then if I find the right spot.

Thanks,

Keith

Harriet Baldwin · Answer

We're property owners and managers in Elmira and know folks in Broome County (Binghamton). Sounds like Elmira could fit your criteria.

Not sure there's a huge difference place-to-place for ability to find contractors.

There are differences in local rental regulations (registration, etc) place-to-place - for example, Elmira requires rentals be registered and inspected, but does not require CofOs except for new builds or particularly extensive renovations

Here's a fun article about one family that's working on a major historic reno in Elmira - I've heard we have the largest concentration of Victorian homes in the region! https://www.stargazette.com/story/news/local/2023/09/05/insp...

Edwin De leon · Answer

Sent you private message Stephanie when you get a chance check your inbox Edwin thank you

Stephanie Jacobson · Answer

Any market is going to be tough under $120k at the moment, because inventory is so low. Binghamton would fit, but you'd have to be very careful about what you buy and where. Student properties in Bing would be out- they're at a premium right now- but you could find some long-term rentals in places like Johnson City or Endicott.

Kyle Reece · Answer

I'm a real estate broker and property manager in plattsburgh. I own a four plex in chazy just north of plattsburgh an a duplex in the city of plattsburgh. I do mid term and long term rentals here but wholesale in FL and AZ. Malone would be good for section 8. A few of the manufacturing plants actually bus works from Malone to plattsburgh. Short term is tricky if you want to do it legally. The local regulations limit the total days you can rent to 90 in the high tourist area like lake placid. NY is annoying to have rentals due to the laws being so tenant friendly. I'm looking to reposition my rentals across the lake in VT. A lot of demand over there and it's still close enough to drive to if needed. I just recently did some mid term arbitrage in Atlanta and it's been a headache being so far away. They are finally stable but it's expensive to find someone to do the small things. Unlike when the units are closer.

Richard Patrie · Answer

I have 20 units in Malone. I'm a licensed agent and manage 65 units. I just listed one of my triplexes. Selling it to buy a commercial building. - https://www.flexmls.com/share/9J8EL/51-Washington-Street-Mal...

Chris Holter · Answer

@Keith Allen

Hey Keith, I started about 3-4 years ago and picked multi family in Plattsburgh. Don’t have the headache of 1-2 school rating areas and have never had an issue finding tenants for vacancies. Since then, I have 4 houses, 10 doors total and are all long term. I don’t do college semester rentals because I feel by the time you collect the rent and do all the maintenance and upkeep it’s not worth the headaches for me.

Keep in mind, most of the upstate houses are old, mine range from early 1800’s to 1900’s and will definitely need work, especially structural in the cobblestone basements if there is one.

I’ve been through a lot of renovations , full rip outs, inspector issues and eviction process here if you want to chat on the side.

I also use apartments.com which is free for rent collection and background checks.

Mark Wright · Answer

I'd recommend the Adirondacks for either LTR or STR, but specific to each town.  I wouldn't really recommend Malone; not much economic development.  Plattsburgh might be a viable option for college rentals.  (I'd be happy to help you look there.)

Matthew Irish-Jones · Answer

Tenant screening is really important.  Evictions are long, expensive, and can take longer for no good reason no matter how good your paperwork is.

120K is a low price point for the WNY area, that will get you into some tough neighborhoods.  Overall, I have built a portfolio of over 60 units in WNY and its gone very well.

Labor is expensive, but you can outsource that to a good PM company.

Michelle Schrader · Answer

Also agree with Preston, Rochester has been a good place to invest. It regularly shows up on Dave Myers reports too

https://www.biggerpockets.com/blog/best-real-estate-markets-...

When I had a tenant struggle to pay rent for a few months we found a local housing assistance program to help. Since we began that relationship they have placed all my city tenants since. They are constantly asking if we have more units and seem to be well funded in Rochester. As you know, being a fellow New Yorker, our taxes are high despite our lower housing prices and of course it’s more of a tenant friendly state. There are some nice suburbs to invest in as well.If you’re not afraid of rehab on older homes you’d probably have luck here in Rochester.

Preston Garcia · Answer

It’s very cheap to apply for it, but really depends on how picky the inspectors want to be. It’s definitely not a reason to not invest over here, but just something to keep in mind. I see a lot of properties have the C of O’s transferable too, which is nice!

Where to invest upstate (and New York state logistics)

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