Buying In a hot market (Syracuse, NY)

Buying & Selling Real Estate
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Buying In a hot market (Syracuse, NY)

Elijah Berg
Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes

Hello everyone I am turning to the BP community again for help!

I am currently on the journey to purchase my first property at 19 and have hit a roadblock. I am going for a house hack with Fannie & Freddie conventional , After my 4th offer was rejected going over listing I asked the listing agent for some additional info and they stated that for this property there were 42 showings within 4 days. 1 cash offer, 1 commercial, 15 conventional and one FHA with 9 waived inspections, 11 escalation clauses and 5 appraisal gaps. for the previous 3 offers it was Identical.

I don't want to be stuck waiting on the sidelines so with the market being this hot I am a little confused about where to go from here, should I start seeking out wholesalers, doing direct mail campaigns, targeting older listings, hunt more in off market or just keep submitting offers?

One of my mentors put me in connection with a colleague of his who is selling a quarter of his portfolio due to retirement. After viewing one of the properties I thought was a good pick. I decided to walk away due to it not being in good condition with bed bugs. But will definitely keep the list in my back pocket

Any and all Insight would be greatly apricated, thank you all so much!!! 

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Stephanie JacobsonBusiness Member
Real Estate Agent · Ithaca, NY · Member since 2016 · 427 posts · 323 votes
2y

Hey Elijah! Do you have a buyer’s agent? It seems like it would be easier to go straight to the listing agent, but some residential agents won’t do dual agency and it complicates things. Also, a buyer’s agent can assure a busy listing agent that you’re qualified and explain some of your situation. Not to mention all the advising and navigating your own agent would do. 

As for Syracuse itself, depending on where you’re looking it’s wild out there. In a market where I would expect to see 8-10% cap rates, I’m seeing things go at 3-4%. I would *strongly* discourage a buyer, especially a new investor, engage in that kind of nonsense. There’s so much hype about Micron that folks are willing to pay for potential- don’t do that!! Once you have a few under your belt and are confident on renovation costs, have your team in place, etc., you might roll those dice. But not on your first house hack. 

As frustrating as it is, you’re going to have to be patient and keep trying. Do NOT waive inspections, no matter what an agent tells you. (You have other options, like bringing an inspector to your walkthrough and getting it done ahead of time.) But with the Syracuse market, I think you’ll just have to be persistent and patient. 

Please let me know if there’s any way I can help!

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Elijah Berg

    i know it's a challenging market... but keep looking for that house hack.

    4th offer - that's great!  i think that's 3 more than a lot of people make before they get frustrated and stop.

    so keep going.

    2Reply
  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    2y

    Hi Elijah,

    Love to hear about other young investors in real estate. Yes, it's a tough market even though the interests are still high. Wholesalers usually bring fixer upper deals, so connecting with more agents may make more sense. If you are looking to do more properties in the next few years, setting up your own off-market leads would make sense. If not, leveraging existing real estate agents would be a great way to get more deals. Keep on making offers and they will follow through!

    310-848-9776
    1Reply
  • Stephanie JacobsonBusiness Member
    Real Estate Agent · Ithaca, NY · Member since 2016 · 427 posts · 323 votes
    2y

    Hey Elijah! Do you have a buyer’s agent? It seems like it would be easier to go straight to the listing agent, but some residential agents won’t do dual agency and it complicates things. Also, a buyer’s agent can assure a busy listing agent that you’re qualified and explain some of your situation. Not to mention all the advising and navigating your own agent would do. 

    As for Syracuse itself, depending on where you’re looking it’s wild out there. In a market where I would expect to see 8-10% cap rates, I’m seeing things go at 3-4%. I would *strongly* discourage a buyer, especially a new investor, engage in that kind of nonsense. There’s so much hype about Micron that folks are willing to pay for potential- don’t do that!! Once you have a few under your belt and are confident on renovation costs, have your team in place, etc., you might roll those dice. But not on your first house hack. 

    As frustrating as it is, you’re going to have to be patient and keep trying. Do NOT waive inspections, no matter what an agent tells you. (You have other options, like bringing an inspector to your walkthrough and getting it done ahead of time.) But with the Syracuse market, I think you’ll just have to be persistent and patient. 

    Please let me know if there’s any way I can help!

    3Reply
  • Carini Rochester
    Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes
    2y

    I like your idea of targeting older listings. Expect to find less desirable properties, deferred maintenance, low curb appeal, maybe even damage that needs to be repaired. But, there won't be a bidding war and any fix-up you do will make the property worth more than what the improvements cost you (I hope.) 

    1Reply
  • Andrew C.
    Investor · Forest Hills, NY · Member since 2014 · 101 posts · 52 votes
    2y

    @Stephanie Jacobson Wow!  I heard about Micron going there but didn't realize it was such a hot market now.  Has the Syracuse housing market appreciated that much already?  I thought Micron construction hadn't even started and it didn't seem like the first plant would be completed until 2026.  I will have to say that I am tempted by the potential...I mean there's a lot of money going into that area.  Do you think it would be a good investment if your focus was more on appreciation rather than cash flow?

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  • Stephanie JacobsonBusiness Member
    Real Estate Agent · Ithaca, NY · Member since 2016 · 427 posts · 323 votes
    2y
    Quote from @Andrew C.:

    @Stephanie Jacobson Wow!  I heard about Micron going there but didn't realize it was such a hot market now.  Has the Syracuse housing market appreciated that much already?  I thought Micron construction hadn't even started and it didn't seem like the first plant would be completed until 2026.  I will have to say that I am tempted by the potential...I mean there's a lot of money going into that area.  Do you think it would be a good investment if your focus was more on appreciation rather than cash flow?


     It depends on where you're looking. The issue with the downtown areas right now is mostly an inventory problem, actually: there are very few good, cashflowing options on the market. That means when something comes on that has good rents or is in good condition, or both, there's a ton of competition for it. That's what the OP here has been up against.

    You can find decent cashflow on paper in Syracuse right now, but not in areas expected to benefit from Micron's growth. There's a lot of speculation, too. What kinds of employees will be hired? How many will be local? Will these folks prefer to buy suburban or rural homes, or will they want to rent and eventually buy within the city? The answers to those will come in time, but for now buyers are taking risks buying properties with poor cashflow or in poor condition.

    There's definitely potential. It's about keeping your eyes peeled and finding that great deal! Even if you're aiming for appreciation and want to hold more than five years, you'll still be gambling a little bit basing your purchase on Micron.

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