Glens Falls, NY · Member since 2015 · 50 posts · 17 votes
Hi Everyone,
So I have been stacking my brain for the past few months trying to decide whether to purchase a multi family property as my first deal or to do a fix and flip? I know that it all comes down to personal preference and long-term goals, but I was hoping I could get some advice from other members? I live in upstate NY in Saratoga Springs and I don't know if I can bring myself to purchase a home in NY with the property taxes as high as they are–even with an abatement or an exemption!
So my question is what was your first deal and how did you finance it? Would you do it differently if you could?
Tags : Albany, NY ; Capital District ; Glens Falls, NY ; Queensbury, NY ; Upstate N.Y. ; Buy and Hold ; House Hacking ; Fix and Flip ; Action Investors ; Foreclosures ; REO ; Wholesale
Rental Property Investor · Glens Falls, NY · Member since 2016 · 30 posts · 16 votes
8y
Hello All! I live in Glens Falls and work in Saratoga. Real Estate is in Saratoga is currently untouchable for an average investor or someone starting out. You will be paying well around 150 (on the low end) per Sq foot for a building that likely has some differed maintenance. A 2/3/4 unit in good shape will hit the market for anywhere from 300K - 750K. The numbers simply do not work. Yes rents are higher, maybe 1150 for a decent 900 sq ft apt. but does that justify the 140K you will be paying for the unit? It doesn't in my books. Saratoga is a beautiful area but not the best spot to be buying multifamily for the average/beginning investor. In comparison, 15 miles to the north in Glens Falls, nice multifamily buildings are selling like crazy for somewhat reasonable prices. You can find a somewhat decent multi for around 60Kper unit maybe less if your willing to swing a hammer\ and rents are between 700-900 depending on location in the city and condition. The numbers work pretty well. Some other surrounding areas such as Schuylerville, Mechanicville, and even Ballston spa will yield much better numbers than looking to buy a 275K Duplex in Saratoga. Happy to discuss this further if anyone has any input or suggestions for investing here in upstate NY!!!
Glens Falls, NY · Member since 2015 · 50 posts · 17 votes
10y
Personally, I would like to build wealth over time through rental income from large apartment buildings. I would use money from the fix and flips to purchase my first apartment building. Currently, I am not working full-time, however, I was just offered a position with a company out of state and am deciding whether or not I want to take the position.
Saratoga Springs, NY · Member since 2016 · 11 posts · 6 votes
10y
Not as of yet. My real-estate partner and I have just started to look. Been looking in Saratoga county as well as areas such as Watervliet. Taxes are definitly high and do play a bug role in flipping. We're looking mainly to buy multi family and rent out in this area.. Hopefully.
Glens Falls, NY · Member since 2015 · 50 posts · 17 votes
10y
Nick Meers Absolutely. I was talking to a well known couple who have been investing in Saratoga since the 90s just a couple of weeks ago (Fred and Shannon Scheidt of Saratoga Excelsior Group). I asked them what the cap rate was for Saratoga, they said very small if any because the price points are so high but they make up for it in appreciation. Whatever you do, I wish you luck! And please keep me updated.
Rental Property Investor · Louisville, KY · Member since 2008 · 342 posts · 123 votes
10y
Like mentioned it can depend on goals a lot. My overall goal is a big rental portfolio. To get there I am working on increasing my income and reducing my daily living expenses.
I had a massive personal budget overhaul about a year ago and reduced my expenses as much as I could, all expenses are planned and budgeted and I know exactly how much cashflow I have each month if there are no unexpected expenses.
Part of that is I am focusing on flipping/wholesaling property to build more capital and then use it to buy more rentals as well and focusing on increasing my J.O.B. income until I can do REI full time.
I think either route can work, buying only rentals may be a little slower at first but if the equity and cash flow are managed well it can increase more and more.
Glens Falls, NY · Member since 2015 · 50 posts · 17 votes
10y
Nick Meers Small world! I never knew her personally but I'm sure if you knew her you are most likely familiar with a few other friends of mine as well.
Thanks Michael J. ! You hit a lot of good points. I have been pretty good about budgeting my money but I know there is always room for improvement. I was dead set on purchasing a rental for my first property using the FHA 203k on a foreclosed home, but I am realizing now that personally, flipping a home would probably make more sense since I am not sure if I want to stay in upstate ny or move to a more tax friendly state.
Investor · Albany, NY · Member since 2015 · 134 posts · 132 votes
8y
Hey Allison,
I live in Clifton Park, NY, but invest in less expensive areas like Troy, Cohoes, Watervliet, and Rensselaer (and some suburbs of Albany). In my opinion, if you are looking to build a rental portfolio, buying in Saratoga Springs (or even Saratoga County) is not the best option. Price to rent ratios are just not profitable. If you’re looking to do a live-in flip in Saratoga, that might be an option if you can find a cheap enough property that you can force appreciation into. But, the Saratoga market is very hot. Cheap properties are hard to come by.
What are your goals? What are you looking to accomplish with real estate?
Rental Property Investor · Saratoga Springs, NY · Member since 2018 · 162 posts · 102 votes
8y
Hi Desiny,
Saratoga is great and if you're able to find a property where the numbers work for your investing requirements then great! Otherwise I'd give consideration to areas more to the south like Troy or north in Glens Falls. Cap rates are a bit more attractive.
Rental Property Investor · Glens Falls, NY · Member since 2016 · 30 posts · 16 votes
8y
Hello All! I live in Glens Falls and work in Saratoga. Real Estate is in Saratoga is currently untouchable for an average investor or someone starting out. You will be paying well around 150 (on the low end) per Sq foot for a building that likely has some differed maintenance. A 2/3/4 unit in good shape will hit the market for anywhere from 300K - 750K. The numbers simply do not work. Yes rents are higher, maybe 1150 for a decent 900 sq ft apt. but does that justify the 140K you will be paying for the unit? It doesn't in my books. Saratoga is a beautiful area but not the best spot to be buying multifamily for the average/beginning investor. In comparison, 15 miles to the north in Glens Falls, nice multifamily buildings are selling like crazy for somewhat reasonable prices. You can find a somewhat decent multi for around 60Kper unit maybe less if your willing to swing a hammer\ and rents are between 700-900 depending on location in the city and condition. The numbers work pretty well. Some other surrounding areas such as Schuylerville, Mechanicville, and even Ballston spa will yield much better numbers than looking to buy a 275K Duplex in Saratoga. Happy to discuss this further if anyone has any input or suggestions for investing here in upstate NY!!!