Albany NY potential does it exist?

Question

I’m a budding investor living in NYC. I choose ALbany as my first rental investment on a two family unit. It’s not the best market area but it is also not the worst. I’m interested in some feedback and networking regarding my endeavor.

Adam Nye · Answer

Hi @Christine B. Glad you're thinking about investing in the Capital Region, as I have. I just closed on my first Albany rental property today, but I have many others throughout the surrounding area. Our local market is pretty competitive right now, but there are still deals to be found. A lot of the quality buildings (appreciating areas, good condition, etc..) you'll have to pay a premium for. You'll get a stable asset, but maybe not as much cash flow. On the other hand you could really make a good deal yourself by buying something needing a little love and repositioning it to a better property with higher rents. PS - If you're focused around UAlbany & St Rose, you'll be dealing with mostly student housing. Different market than a traditional rental, but cash flow to be found there as well.

Account Closed · Answer

Albany is a tricky place

Christine B. · Answer

The home I got is a 2 unit (2bd 1bath) +(1bd 1bath) in the downtown Albany area few blocks from the state buildings for about $90k after closing cost. I bought it with tenant occupied who were paying under market value, currently they’re  paying $775 each unit and going rates are $800+. Potential could be as high as $950. Cashflow is pretty minimal for now  but i have a month to month lease with our tenants and can raise it whenever I feel with decent notice.

I’m not using property management right now. The previous owners didn’t have property managers either. I do have a handy man in the area if need be. Strategically I chose this home because it was renovated to the studs about 4 years ago so it’s in good shape  we are shopping around for property managers although.

I had a realtor who was diligent enough to give us a drive around the town showing us the hot spots and bad spots. Albany and St Rose college are their nucleus.

Ryan Vienneau · Answer

Albany's a little overpriced at the moment, but deals can be found that cash flow.  Also keep an eye on Troy and Schenectady, better returns if you buy in the right neighborhoods.

Frank Patalano · Answer

You can find amazing deals anywhere. Especially off market deals. One time I bought a 2 unit in a C- area for $28K and sold it a year later for $65K. But that was because I knew the area and a local attorney offered it to me. The biggest problems that I see for you are building a local network and knowing the neighborhoods outside of your area.

The best markets and the worst markets can all have a couple of great opportunities every now and then.

Chipo Asare · Answer

Hello I don’t know anything about Albany ny. Am interested in investing there too. How much are you getting rent per month? Also how much did you pay for the property if you don’t mind. Who’s managing the property for you?