Rochester , NY

39 Replies

Hello BP friends . 

i have heard some awesome stories about @Rochester,NY and all the potential in the 19th ward . i was wondering if any of you guys know a turnkey company that works in that area and have a good reputation . 

i have come across some website that looks like they work in Rochester ,  but their website is kind of out of date . 

thanks in advance .

As far as I know there are no full scale turnkey companies in the area. @Mark Updegraff does a lot in the 19th ward and has helped remote investors however.

hello, 

I've also been focusing my sighted on Rochester and buffalo, however I am not familiar with the areas enough to be able to describe them by their neighborhood designation , ie. 19th ward etc. Where do I find this info?

@Markeilsha R. A quick google search came up with this http://www.rochestersubway.com/topics/2012/08/new-maps-of-rochesters-neighborhoods/ the blue image titled "Neighborhoods of Rochester NY" has 19th ward listed, as well as others.

@Eric M.  Thank you, that will help a lot.  Also, can you tell me the most desired areas in. Rochester?

@Markeilsha R. I think that's a loaded question as "desirable" is subjective. What are you looking for specifically?

@Ali Boone  i found a couple like usachoicerealty but they are so out of date , i looked at some for sale properties myself and the prices are amazing for investment . but since a trip from CA to NY is going to be a hassle , i was looking to see if i can talk to some TK or PM companies in that area first . 

Originally posted by @Sam Hadad:

Hello BP friends . 

i have heard some awesome stories about @Rochester,NY and all the potential in the 19th ward . i was wondering if any of you guys know a turnkey company that works in that area and have a good reputation . 

i have come across some website that looks like they work in Rochester ,  but their website is kind of out of date . 

thanks in advance .

 Hi Sam,

I owned 2 properties in Rochester and worked with many investors that had more substantial portfolio's there than I did.

I can't stress enough how important the property management is in these Upper State NY markets.

IMO its one of the toughest lower end markets in the US.

Unfortunately it took me very long to find trustworthy people there and it ended up being a very good learning curve for and assisted in molding my investment philosophy.

Thanks for reading and have a great day.

@Sam Hadad  I agree with @Engelo Rumora.  I only have 2 multi-families at the moment in Rochester, but I almost gave up because of poor property management.  My properties now do well, communication is great, and I am in an area worse than the 19th Ward (I've heard it's a nice investment area though, but I would defer to locals). 

I frequent the area because of family too, so I at least get to visit the properties...I would just urge caution if those trips are difficult and you can't at least see the area for your first investment.

Best of luck!

Chris

@Eric M. I just got two contracts for REO properties in Rochester. I don't have a huge buyers list for the area, and I live in Syracuse so I responded to a few ads I found on craigslist. A investor (wholesaler/rehab flipper/ buy& holder) called me right away expressing interest. I gave him the addresses, and the info I got from him sort of went contrary to what my recent comps said. Idk if it was a sales sort of pitch to bring down the price, but he did give me a lot of good info regarding codes, and points etc. I'm really new so suffice to say, my ignorance in these factors scared me a bit. I mostly just let him talk, but he based a lot of it in theory and speculation without seeing the house. He knows the area really well it seems. So getting back to the question I asked, and why I asked it--investors seem to be interested in specific areas. So I'd like to target those for my future searches.

BUT I guess another question would be, can you get a good property in a not so good or "desired" area? If you do (and I think I do), how do you market that?

Originally posted by @Christopher Schmidt:

@Sam Hadad  I agree with @Engelo Rumora.  I only have 2 multi-families at the moment in Rochester, but I almost gave up because of poor property management.  My properties now do well, communication is great, and I am in an area worse than the 19th Ward (I've heard it's a nice investment area though, but I would defer to locals). 

I frequent the area because of family too, so I at least get to visit the properties...I would just urge caution if those trips are difficult and you can't at least see the area for your first investment.

Best of luck!

Chris

Thanks Christopher,

What management do you use?

Thanks

@Markeilsha R.  The two zips you have properties in are investor hot spots, for sure. However there are many investors who won't touch these areas. The last four assignments I've done we're all in 14621 and the most an investor paid was $18K which included my fee. Desirability is different to each person -  Park Ave (high end rental,) Monroe Ave (mid/high end rental,) South Wedge (mid/high end rental,) 19th ward (low/mid rental,)  14621 (low end rental.) Investors are active in all of these areas but the areas are all very different.  The buyers you have will determine where you should target. The county website can be a good source of information regarding property owners - PM me for navigation advice. 

a lot of picks been broken in Rochester by foreign and out of area investors.  Heed Engelo's advice if your not from the area or close by.  Many other areas of the country were you would be much safer in my opinion.

Originally posted by @Jay Hinrichs:

a lot of picks been broken in Rochester by foreign and out of area investors.  Heed Engelo's advice if your not from the area or close by.  Many other areas of the country were you would be much safer in my opinion.

 Thanks for the mention Jay.

Very tough market that one...

www.spotcrime.com is a necessary tool!

thanks @Eric M. The 14613 property had two on the same street sale for almost twice. As a new investor I've been a bit confused about pricing rentals vs SFR. The property in 14621 is a SFR whereas the one in 14613 is a multi rental. I thought the price I got was great, but people are really selling rentals at $13k? My 14621 property is a REO that I contracted over $20k, judging by what you wrote I'm already in the red. It will definitely come in handy as I gain more experience in the area. My question about all that is about comps.

@Engelo Rumora  that was some awesome advice , you are absolutely right about the management and  how important it is . the problem i have is that even with $100 cash in hand you can barley do anything in CA , especially where i live , so i am looking for investing in other states . 

Originally posted by @Sam Hadad:

@Engelo Rumora that was some awesome advice , you are absolutely right about the management and  how important it is . the problem i have is that even with $100 cash in hand you can barley do anything in CA , especially where i live , so i am looking for investing in other states . 

 My pleasure Sam,

Yes, CA is very similar to the Australian market.

The Midwest offers great opportunities also.

Ohio, Michigan, Indianapolis, Kansas City are some of my favorite picks.

We are based in Ohio and have been buying quite a few. many solid B class properties at rock bottom prices.

Team makes the Dream work so wherever you are looking make sure you have trustworthy and competent people around you.

I stress this in every one of my posts that the team is more important than the location.

Thanks for reading and have a great day.

@Markeilsha R, I've spent time between Buffalo and Rochester and I can tell you the two cities are like night and day compared to their contracts and process closings. One thing I've learn though is there's never a bad deal as long as it's structured correctly. Don't be overzealous with the assignment fees and build your clientele through networking, I've meet about 20-30 buyers at the recent auction a few months ago and I saw what they were buying and where and that's how I market my deals. Repair estimates are key to negotiating a price and knowing the COMPS and CMA in a area is key. These are not things that will happen over night, it does take time. You have to stay positive and know you CAN FLIP and PRICE anywhere. Stay Strong...alot of the people here know what they're talking about.

Hi Sam, 

I live just outside Rochester, and am actively involved in assembling a "turnkey team" in Rochester right now.  If you're going to buy here, I really believe turnkey is the way to go.  I've purchased properties in 4 different states (including California and New York), and I can say the process here is quite different.  

I'm not quite ready to "pull the trigger" for the turnkey business yet, but I saw your post and decided to reach out to you.  Our contacts include an area expert/agent that knows the areas to buy and avoid - street by street, an excellent property manager, a real estate attorney (necessary here in NY), property inspector, insurance agent, lender (if necessary), contractor, etc. 

Feel free to reach out to me to discuss your thoughts and plans.

Cheers~

Tara Piantanida-Kelly

A lot of the comments on here are right about where to buy... remember, prices are what they are for a reason. I'm not a Rochester expert but what I have heard about it, the prices may be great but there is not a lot going on up there in terms of growth, industry, etc. If you live in CA, I too would suggest not just focusing there. If you were local there, I'd understand better, but if you are just looking for whatever areas are good for investing, I believe there are better areas than Rochester.

I live in and am an investor in the Rochester NY market. The houses that are cheaper are that way for a reason. They are in a declining market for the most part. It is also where you can make the most amount of money. It all depends on what you are looking for? Are you looking for appreciation and a home that has a good escape route that you can sell for a reasonable price? or Are you looking to invest the smallest amount of income, with the highest return on your investment - but the escape route of cashing out isn't the best and you may loose money?

We have looked into investments all over Rochester NY. I am a loan officer for Cole Taylor Mortgage. I am not a realtor. This opinion is my personal opinion and just what I see from working with clients in the area and my own research and experience. I am sure that I forgot some but here are a few examples:

The zip codes that are appreciating are 14607, 14620, 14612,

The zip codes that are somewhat stable and are somewhat difficult to sell are 14613, and 14619

The zip codes that are difficult to sell and decreasing in value are the 14621 and others with very cheap prices.

The issue with city homes is the repairs can be costly, especially with large units, that you could very easily loose money fixing them up. Many of the very cheap homes are not well maintained and need work. Again, this is my personal opinion from homes that I have seen. I think these were all the zip codes that I have seen mentioned and prices vary greatly from street to street in some of these zip codes also. I am just generally speaking.

Jerry Padilla, Lender in NY (#NMLS 1084877)
585-204-6923
Originally posted by @Jerry Padilla:

The zip codes that are appreciating are 14607, 14620, 14612,

The zip codes that are somewhat stable and are somewhat difficult to sell are 14613, and 14619

The zip codes that are difficult to sell and decreasing in value are the 14621 and others with very cheap prices.

 Good post Jerry.  I agree but will comment that are appreciating does not necessarily equate to will continue to appreciate.  Also, I think 14607 is relatively flat in that it has little room to advance higher.  14620 is getting pushed up into that same position quickly.

It will all come down to your ability to get the best acquisitions under contract. If you're working off the MLS you're going to need to be quick and strong. There is no room for weak offers when equity is at stake.

Mark Updegraff, Real Estate Agent in NY (#10491205428)
(585) 314-9790

Yes, I agree Mark. The homes in 14620 and 14607 are not appreciating a ton, but they aren't loosing their value, and 14620 has appreciated quite a bit over the past few years. They are much easier to sell than some of the other areas of the city.  

Jerry Padilla, Lender in NY (#NMLS 1084877)
585-204-6923

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