Is this a good deal in Schenectady, New york?

5 Replies

I am planning on buying a 2 unit house in Rotterdam, Schenectady(new york). Is this a good area to buy rental property? Also is my monthly cost reasonable? 

House price = $109,000

Downpayment = 20% or $21,980

Out of pocket = $29,744

P&I = $472/month

Taxes = $291/mont 

Home Insurance = $125/month 

Water bill = $100/month 

Trash fee = $0

elc / gas = $0

Repairs = $100/month

Maintenance = $100/month 

Property manager = 10% or $185/month

Vacancy = 10% or $137/monty

Total monthly expenses = $1,510.76/month

unit 1 income = $900/month

unit 2 income = $950/month

Total rent income = $1,850 /month

Cashflow = $339.24/month

Based on your calculations, you have a CoC return of 13-14%, which to me is not bad.

Does the house require any immediate fixing and did you account for those? At 109k, I would expect some upfront costs going to it.

If you did an inspection on it, some of those should have come out but you should look at the bigger items (roof, furnace, flooring, bathroom, kitchen) and see if those are in fair condition, at least to get you started.

If you don't account for those, what seems to be a 13-14% ROI could be less than double digits, especially if you have to do the room and a furnace or 2 all at the same time.

Due your due diligence and if you are comfortable with the numbers, go for it. That return for your area is pretty good. (I used to live in North Colonie for 9 years. :)

What Nik said is correct. Only thing I would as is looking into the sewer and plumbing system. I am assuming that this is an older property, many of the are in that area, to make sure there there are no hidden problems that may occur. Also with older properties like these it would be a good idea to keep a higher amount of cash reserves so that you can make the repairs as they come up. 

Feel free to reach out if you have any other questions.

It looks good on paper but couple people told me that its hard to find good tents that will pay. This house been on market for 200 days now.

i am trying to answer 2 main question...

1) if its such a good deal than why the seller selling this house? 
Looks like this house is defualt.. maybe issue with loan payments

2) if its such a good deal than why havent anyonr else with more experience than me hasnt brought this by now?
Again been on market for long time

I think answer to these questions comes down to area and location. I need to do some research on this area. Worse case i buy this house and i cant tents that will pay or pay on time

Hello @Andrew Bailey ,

Be careful of spreadsheet magic. There are properties that work well on a spreadsheet, but from a management perspective do not make sense. They are labor intensive when it comes to leasing, collections, turnovers, etc.

I would suggest that you do the following:

  1. Break out your expenses – Operating from Non-Operating expenses (P&I). When you do that you will see that your OpEx ratio appears very high. Dig into this further.
  2. Determine your ARV (After Repair Value). What is this two-family building worth when leased and all deferred maintenance is accounted for? Once you have this, you can then determine whether that price makes sense.

I think once you answer these questions things will start to fall into place. If you ask the seller their motivation for selling they are generally pretty forthcoming. Might be something as simple as they are relocating or don't care to be a landlord.

What municipality is the house located? There is a HUGE difference between Schenectady and Rotterdam! Schenectady taxes are VERY high and the school system is one of the worst in the state. If you house was assessed for 109K in Schenectady, your city and school taxes would be right around $6,000. Rotterdam property and school taxes on a 109k house would be around $3,800 per year. Rotterdam schools are so MUCH better than Schenectady schools. I doubt that this house is in Rotterdam  because not many 2 family houses in Rotterdam and if it was, the price would be MUCH higher (and I would have bought it). Your tenants in Rotterdam will be much better quality. FYI - I was a cop in Schenectady for 21 years. I also own rentals in both Schenectady and Rotterdam. I live in Rotterdam.

I don't come here to BP often, if you want to discuss, email me at bbarnes2 at