Upstate NY (Utica, Syracuse,Rochester,Albany....etc) is not a great place for appreciation. However, that is not to say there aren't pockets or periods where that is not the case. As for Utica, look into the status of Nano Utica for any hope of job growth.
Having said that, much of Upstate is characterized by above average cash flow....especially in the aforementioned markets.
I’ve learned that some areas don’t cash flow.
Some areas don’t appreciate.
Some do both. Usually not for long.
In my personal opinion, when a property appreciates to much, it eats up the cash flow. Cap rates get lower, prices don’t.
I invest in an area that probably won’t see much appreciation but cash flows. At the end of the day I need food on the table every month. Appreciation is just like having dessert. It’s all about what your strategy is.
I can buy a place for 75-100k that has a NOI of $1000 a month. That’s a pretty great cap rate. Don’t think the value is going up any time soon though.
@Fraidy Deutsch There are better markets to invest in Upstate than Utica. It seems like you don't know much about the area, you should take a weekend and spend some time there and you'll see why. Downtown is pretty rundown, not very many good paying jobs around, and the area is losing population. If you want to look Upstate and be closer to home, look at the Albany area. More diverse economy, low unemployment, very large student population, decent paying jobs, and a very tight rental market with low vacancy rates. The bad thing compared to the rest of the country is high property taxes, tenant friendly laws, and the winter weather can take a beating on the mostly older housing stock. However high cash flow can still be found if you buy right and factor all that into your numbers.
Friday I have to agree with Steve. Take a few long weekends and go up there. Since you live in Westchester I would start with Kingston (which is recently known as Brooklyn North), then Saugerties and woodstock. Then I would swing over to visit the Towns of Catskill and Hudson. Both near each other. Then hit Albany. All of these towns have been showing a stead increase in values. Although I would say that Hudson has become overprices.
I'm 35 minuets from Utica. There is a lot going on there. There is a decent sized downtown revitalization going on. They are probably building a new hospital. So from my limited experience, depending on your goals there are good things going on there. That being said, it all depends on the location. There are several very bad locations there. I have not looked at many properties there, I'm slowly building but would look there. I've looked in Albany and cap rates are low and you have to look very hard to find a deal. I've been told Troy is a good location, haven't had a chance to look yet. Hope that helps a little
Although I do not currently reside in the area I did live there for 30 years and still visit family approximately 8 times a year. In the past I had investment properties in the area and am currently seeking to re-enter the market. Utica is a market that many might shy away from but it would depend on your goals. If you are looking for any sort of appreciation you are looking in the wrong place. That said, because they do not participate in the huge market up swings, they enjoy stable home values in the economic downturns. I have found the cash flow to be above-average. I believe this to be mostly due to the lower than average home prices and the fact that the somewhat depressed area economy keeps some folks out of home ownership and into the rental market. The population has been in decline but at a very slow rate. Some of the population losses have been stabilized by influxes of refugees. For me specifically, I will be focusing on the outskirts of Utica (Whitesboro, New Hartford, etc...) where the schools are much more desirable. The area has some potential for growth due to the new Nano Tech facilities but it remains to be seen if that will all come to fruition.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.