Rochester multifamily properties

9 Replies

I'm interested in purchasing multifamily properties in Rochester NY. Anyone have any experience with a buy and hold for cash flow in the Rochester area. They boast 20-30% cap rates....

@Benson Babu welcome to BP! As Mark said those deals don't come up often if ever in Rochester and then only to the connected investor, but you should be safe in assuming 12-16% cap rates on multis in many areas of Rochester.

You'll find a good group of investors on BP that will be glad to help with any questions on Rochester, NY investments.

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For what it's worth, I have one property in Rochester that I purchased in 2011 for $23k that returned 20% for a couple years in a row, and that $23k included a $8k finders fee (the actual sell price to my "finder" was $15k). Had I been knowledgeable/active enough to find the deal myself, it would have been more like a 30% return.

Major qualifiers:

1) The tenant never asked for anything significant to be repaired,

2) It's in what I'd consider a war zone

3) The tenant stopped paying rent and was evicted a few months ago, and now I'm probably paying for all the things that weren't repaired while they were living there, haha

Bottom line - 20-30% is possible, though there will likely be risks/extenuating circumstances. Most of my others are more like 12%-16% like Dave said, if they have a decent year without an eviction or significant vacancies. I'd say even to maintain those rates you need to be on your toes and serious about your business.

@Mark Updegraff I have had my properties managed by Integrity PM. I'm actually doing some renovation work on it now to try to improve the value and rent levels, so it'll probably be a month or two before I have it filled again. It can be tough in winter months. It's 16 Myrtle St.