State of RE Investing in CNY 2020

Investor · Boston, MA · Member since 2016 · 91 posts · 45 votes

Looking to get feedback from the BP community on investing in CNY - from a quick search on MLS you can find small multis for $50,000 a unit with rents going for $800 a month. Back of the envelope, there's plenty of margin for cashflow.

Most of my experience has been investing in B and C-class multis in Providence, RI where units are closer to $80,000 a unit in decent condition, renting for $900 a month. The economic occupancy with B and C-class in Providence is pretty challenging and it's not uncommon to be running a 5% delinquency rate.

Would love to learn a local investor's perspective on CNY (Syracuse, Utica, Rochester, Rome) over the last couple of years.

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Nick Rutkowski

Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes

@Fan Bi

Great time to come in to Syracuse. Microsoft and Amazon are planning on moving in and millennials are moving to the city.

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Frank Procopio
Real Estate Agent · Naples, FL · Member since 2016 · 298 posts · 268 votes
6y
Sent you a message
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Staneley Cesaire
Investor · Utica, NY · Member since 2016 · 24 posts · 26 votes
6y
In utica properties have been going up for the last few years, under $60,000 is more like fixer uppers in C-D list neighborhood!
1 Reply
Nick Rutkowski
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Fan Bi
Great time to come in to Syracuse. Microsoft and Amazon are planning on moving in and millennials are moving to the city.
3 Reply
Fan Bi
OP
Investor · Boston, MA · Member since 2016 · 91 posts · 45 votes
6y
@Staneley Cesaire Are there any local property managers you'd recommend or do most folks self-manage?
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Cory Finniss
Rental Property Investor · Raleigh NC · Member since 2015 · 90 posts · 30 votes
6y
NY has hijacked small buisness owners. I would take a good look at the new tenant laws before considering.
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Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
6y
Have owned out of state properties in Syracuse that I sold a couple years ago. My only advice would be to buy properties in a good enough area where you can attract a quality PM company. The PM companies for lower priced properties there are really bad from my experiences interacting with them which is why we bought in better areas. It will still be cheaper than Providence and your tenant class will be better.
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Kata Walters
Rental Property Investor · Palm Desert ca · Member since 2016 · 101 posts · 72 votes
6y
@Fan Bi I have 13 properties in Syracuse and love the market can’t buy enough properties fast enough! Definitely talk to @Frank Procopio as he’s an investor himself and has a lot of experience with high cash flowing C class properties. Feel free to message me if you want my thoughts on the area etc
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Kata Walters
Rental Property Investor · Palm Desert ca · Member since 2016 · 101 posts · 72 votes
6y
@Michael Noto agree there are some horrible property managers. This shouldn’t change where you invest though. I have some very stable and high cash flowing properties in what some would call not good areas but if you have good management you can invest anywhere. Management shouldn’t change your investing strategy but yes lots of wolves in sheep’s clothing for sure but that’s anywhere.
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Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
6y
@Kata Walters In my experience the odds of an out of state investor finding a good property manager to manage property in a bad area is not likely. Possible? Sure, but not likely.
Established property managers don’t have to deal with bad areas unless they want to for some reason. Best case is you get a good PM on the come up and they are hungry to add units. Those are very hard to find in my experience.
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Kata Walters
Rental Property Investor · Palm Desert ca · Member since 2016 · 101 posts · 72 votes
6y
@Michael Noto I’m not talking about war zone areas I’m just talking about C class lower income rentals with a high % of section 8 or otherwise gov assisted tenants. I’m not sure if you have invested in Syracuse before ? But most of the city is like this, with pockets of nicer neighborhoods in the outer suburbs. I think if a property manager was to only serve these areas few and far between they wouldn’t have a lot of business. But if you have invested in Syracuse before you know what I’m talking about. But certainly you need to find the right fit for your business. I don’t wish to pay a premium for a PM who can’t get his hands dirty or drive down a less desirable block who’s all talk and no results. But that’s just me:)
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Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
6y
@Kata Walters Yes, I have bought and sold 3 properties in Syracuse as I mentioned and found through personal experiences that you are better off (if you are out of state) to try and find something in one of those outlying B-/B areas as opposed to the C areas.
Like anything else though, we judge things based on prior experiences. Access to quality PMs seemed to open up the better areas I was in. If you can find someone good to manage C properties then that may be the best of both worlds.
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Kata Walters
Rental Property Investor · Palm Desert ca · Member since 2016 · 101 posts · 72 votes
6y
@Michael Noto right I missed that you had previously invested in the market. As with any out of state Investing management will make or break but you just have to find the right one through referrals and go from there.
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Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
6y
@Kata Walters Completely agree
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
6y
@Fan Bi I am in Buffalo NY, we have a similar market. The 50-60K properties with $800 per unit rent roll's are very high risk properties. You need a lot of internal business systems or a PM company with a lot of experience in these types of investments. There is opportunity but, also a lot that can go wrong.
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