Rochester, NY · Member since 2016 · 3 posts · 0 votes
Good Afternoon BiggerPockets Community,
Happy New Year! I am new to real estate investing, I have been diligently analyzing deals in Rochester, NY and I am having difficulty finding any deals that the "math works". High property/school taxes in A and B neighborhoods increase the monthly expenses above and beyond any positive cashflow. Even with a high initial equity it appears to me that its a bad investment. Here is an example that I hope you all might comment on and give me some feedback.
The taxes are much higher in the suburbs of Rochester. The taxes in Pittsford are really high. Have you considered looking in some of the up-and-coming areas in the city? The lower property taxes make it much easier to cash flow.
Depending on what you are looking for I would look into the City. If you are looking for cash flow I would consider the city of Rochester. You can purchase a property for 40-50k that makes $900 a month. It is a lot more risky, but if you can find the right tenants, it can be a game changer.
It would be very difficult to find a property that will cash flow in Pittsford, Fairport, Penfield, Webster, Brighton or Victor. Taxes in NY are very high, so you need to find rents that come close to 2% of the purchase price to really see a return that makes it worth it. Most people who rent in those towns lived in the properties and then for whatever reason made it a rental. I'm sure you could find a few deals in those towns, but be prepared to wait.
My suggestion is to look at the B- to C areas in the city. Right now even there deals are becoming hard to find, but they still exist.
We just locked up a SFH in the city for an owner for $28k that should cashflow over 15%, and that is with property management.