Buying multi-family rental properties in Rochester, NY

14 Replies

     Whats up Rochester Bigger Pockets members! I have been finding golden opportunities to purchase multi-family rental properties in desirable neighborhoods throughout Rochester, including Park Ave. and East Ave. The only issue with that is, I am currently out of country for work and I hate seeing these deals pass me by! 

     If there is anyone out there currently opperating in these areas i would love to connect and network with you through BP in hopes to gain a different persepctive on these areas that I cannot do myself over the computer. I am a huge fan of Pros and cons giving me further in depth viable information to base my searches off of, so if you could....Help a brother out!

Hey Jesse,

    Post some of these golden opportunities and we will critique them!  A lot of seller marketing over exaggerates the numbers.  It is imperative to do your own due diligence and not rely on analysis provided by sellers or their agents.

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

@Jesse Doyle  I agree with Mark, many of the deals in those areas aren't as good as they seem as prices are high vs. rents (Hard to get the 2% rule in those areas).   

Throw one or two properties up on BP as examples and there are a number of us here from Rochester that will help critique the deals to give you more information and it will be a good reference point for other investors looking at those areas in Rochester.  

I am not an investor in Rochester, but I am nearby and own numerous properties.  I am fairly familiar with the different areas of Rochester as well as the pros and cons of these areas.  In my opinion, you will find it very difficult to cash flow positive in Park Ave/East Ave. area properties.  While the do fetch higher rents, they also cost considerably more to buy.  There are other areas in Rochester that offer better cash flows due to more attractive rent/purchase price ratios.  These are not all what I would consider war zone properties either.

In addition to BP, you might also consider FFREIA, which is the Rochester Real Estate Investors Association.  We have several different meetings throughout the month so if you find that you are in the area, check one out.

In the meantime, feel free to throw an actual deal out and we can bounce it around a little for you.

@Mark Updegraff   @Dave Savage   @Adam Johnson  Sounds good guys I appreciate the assistance I will put one property up that is personally appealing. 8 unit apartment building , separate electric, estimated monthly rent for 750 to hit to 2% rule yet there is room to charge more in this specific neighborhood near park ave. after a quick estimate utilizing the 2% and 50% rules I would be left with a monthly net cash flow of $1,500 and that is if the mortgage costs 1500/month and we get the property for 300k. What do you guys think? http://www.loopnet.com/Listing/18071281/294-Meigs-Street-Rochester-NY/

http://www.zillow.com/homedetails/294-Meigs-St-Rochester-NY-14607/2107991510_zpid/ here is the same listing on a different site, the sq/ft is higher on this one which makes me curious but includes better photos etc.  @Mark Updegraff   @Dave Savage  

I know it's not gospel, but Trulia has this house listed as a "high crime" area.  Just a thought.  And Rentometer.com has average and median 1-bedroom rents in this area at about $650.  (I'm assuming that 8 units and 9 bedrooms equals 7 1-bedroom units and 1 2-bedroom.)  Still, not a bad deal if you have $80,000+ to get into it.  

@Tara Piantanida-Kelly  all or most of Rochester listings are high crime unfortunately! One thing that stood out is that it looks to be already rehabbed and move in ready with a little tlc at start up. If only I was in Rochester to take a look in person.

I like cash flow AND equity when I buy and would not personally give this more than 10 seconds of consideration.  Granted, I am very aggressive when I buy and rarely have more than $ 15,000 per door AFTER repairs in my non-war zone propertiesproperties.. You may have different goals than I do, though. 

what are b area zip codes in Rochesteror just b areas to invest in and what is this 2% rule u guys are talking about. I have an investment property in Brooklyn NY but can't buy thier any more way to expensive.when I m looking at a property I Won't take less then a real 10% cash on cash return, not that I m going to invest all cash but after financing that becomes a 13-15 return.. am I looking at this correctly?.. I will not invest in a high crime area 

Hey guys great insight on this thread. I'm currently looking into the Rochester market myself and would love to gain insight from you guys who are actively investing as to the most solid areas out there one can buy their 1st rental property. I know things change block by block but what zip codes, streets or blocks you guys privy and find to be solid for middle-class families looking to rent. greatly appreciate any tips you guys can share. Cheers!

Marc -  I guess it comes down to your budget. 

@Jesse Doyle I just realized that this post was from 3 years ago. Lol!

When evaluating Multifamily assets, the 2% and 50% should be considered very very quick and BoE ways to evaluate these deals. 

Now, as you start to large deals, some of the parameters may not necessarily be accurate. 

You would have to consider what pref you are giving to investors for example and how the cash flow will be split

Hope this helps. Thanks! - Ola  

19th ward certain areas,south wedge,cornhill, outskirts of city, suburb borders. But money can be made anywhere depends on how hands on you want to be and how much risk. 

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