Buying investment property in Rochester NY
Involved In Real Estate · Washington, DC · Member since 2015 · 4 posts · 5 votes
I am currently living in Manhattan but was recently up in Rochester for a day looking at investment property. The purchase price vs rental income is very healthy (assuming occupancy and collections are there). I have read mixed reviews on investing in this market due to pro tenant system, high vacancy and very slow price appreciation. Any advice?
D class area I wouldn't personally.
Hey Robert. Like Adam mentioned, it's not a good neighborhood. I am actually under contract for a three unit a bit further South-East from there, closer to the river. Our other rentals in completely different areas, we have a duplex in Penfield (east side suburb, our primary residence) and a duplex in the south wedge. Over 6 years, our south wedge property has appreciated 40%, rents have gone up 45% (granted, we put some work into the units), and we've had 1 month of vacancy. Tenants have all been either students or recent grads.
It's going to be a completely different story with the triplex we are purchasing. We are expecting very little appreciation and more tenant issues (one tenant is currently not paying). It is the first property where we are going to use a property manager. It depends on what tenants you have in the property, but I personally would be hesitant to remote manage.
It just depends what you are looking for though. I'm happy to chat if you have any questions about the area and market.
Thanks for the insights, much appreciated!
Hi Robert. I used to have properties (all mutli family) in Rochester (NY). In fact my first property investment started in Rochester. During the years I was holding to the properties, I do have tenants (some are long term). Some tenants are on DHS scheme and I need to follow the requirements to have the DHS approved. I also noticed that tenants who are on DHS scheme usually have a higher turnover (e.g move in and out rather quick).
As a foreigner, I have to rely everything on the property managers. This did not work well, so the reason I sold off my properties were due to property managers mishandling my properties.
Regarding slow price appreciation, I have to agree. When I sold my properties, the price did not increase much (though there was still a slight profit, couple with the rental I had over the years and currency gain (bought when USD was low and sold when USD was high).
Hi Roberto! I bought a triplex and duplex in Sept 2020. They're fully renovated and rented to U of R and RIT college students and grad students. They're located in PLEX. In 2021, they have appreciated 16%. Cash flow is great, much better than cash flow at my condo in Baltimore. Since then we have purchased 3 single family homes in the 19th ward, Strong Neighborhood and Ellwanger Barry, all close to the U of R, Strong Memorial Hospital and Highland Hospital. We are in contract for another SFH in the Strong area. I self manage. I have contractors and home warranty for each of the 8 doors. I factor in 5% vacancy, 5 % cap ex, and maybe $1600 lawncare and maintenance for all 4 properties. I made one of the homes in Rochester our second home, and our first airbnb. So far so good. I love Rochester, and I have helped three mentees purchase there too. Bidding wars are crazy. People paying 30-100k over asking. Analyze well so you don't get burned.
Hey Robert. Like Adam mentioned, it's not a good neighborhood. I am actually under contract for a three unit a bit further South-East from there, closer to the river. Our other rentals in completely different areas, we have a duplex in Penfield (east side suburb, our primary residence) and a duplex in the south wedge. Over 6 years, our south wedge property has appreciated 40%, rents have gone up 45% (granted, we put some work into the units), and we've had 1 month of vacancy. Tenants have all been either students or recent grads.
It's going to be a completely different story with the triplex we are purchasing. We are expecting very little appreciation and more tenant issues (one tenant is currently not paying). It is the first property where we are going to use a property manager. It depends on what tenants you have in the property, but I personally would be hesitant to remote manage.
It just depends what you are looking for though. I'm happy to chat if you have any questions about the area and market.
Hi Tim,
I am new here and looking to close my first property in Rochester. Could I please PM you to pick your brain a bit more on investing in this area? Thank you!
Hi Roberto! I bought a triplex and duplex in Sept 2020. They're fully renovated and rented to U of R and RIT college students and grad students. They're located in PLEX. In 2021, they have appreciated 16%. Cash flow is great, much better than cash flow at my condo in Baltimore. Since then we have purchased 3 single family homes in the 19th ward, Strong Neighborhood and Ellwanger Barry, all close to the U of R, Strong Memorial Hospital and Highland Hospital. We are in contract for another SFH in the Strong area. I self manage. I have contractors and home warranty for each of the 8 doors. I factor in 5% vacancy, 5 % cap ex, and maybe $1600 lawncare and maintenance for all 4 properties. I made one of the homes in Rochester our second home, and our first airbnb. So far so good. I love Rochester, and I have helped three mentees purchase there too. Bidding wars are crazy. People paying 30-100k over asking. Analyze well so you don't get burned.
Hi Maria- This is should helpful! Would you mind chatting a bit more with me? I am new to investing (and investing in Rochester!) and would love to learn more from your experience!
Hey Robert. Like Adam mentioned, it's not a good neighborhood. I am actually under contract for a three unit a bit further South-East from there, closer to the river. Our other rentals in completely different areas, we have a duplex in Penfield (east side suburb, our primary residence) and a duplex in the south wedge. Over 6 years, our south wedge property has appreciated 40%, rents have gone up 45% (granted, we put some work into the units), and we've had 1 month of vacancy. Tenants have all been either students or recent grads.
It's going to be a completely different story with the triplex we are purchasing. We are expecting very little appreciation and more tenant issues (one tenant is currently not paying). It is the first property where we are going to use a property manager. It depends on what tenants you have in the property, but I personally would be hesitant to remote manage.
It just depends what you are looking for though. I'm happy to chat if you have any questions about the area and market.
Hi Tim,
I am new here and looking to close my first property in Rochester. Could I please PM you to pick your brain a bit more on investing in this area? Thank you!
I'd be happy to, feel free to reach out.
Hi Roberto! I bought a triplex and duplex in Sept 2020. They're fully renovated and rented to U of R and RIT college students and grad students. They're located in PLEX. In 2021, they have appreciated 16%. Cash flow is great, much better than cash flow at my condo in Baltimore. Since then we have purchased 3 single family homes in the 19th ward, Strong Neighborhood and Ellwanger Barry, all close to the U of R, Strong Memorial Hospital and Highland Hospital. We are in contract for another SFH in the Strong area. I self manage. I have contractors and home warranty for each of the 8 doors. I factor in 5% vacancy, 5 % cap ex, and maybe $1600 lawncare and maintenance for all 4 properties. I made one of the homes in Rochester our second home, and our first airbnb. So far so good. I love Rochester, and I have helped three mentees purchase there too. Bidding wars are crazy. People paying 30-100k over asking. Analyze well so you don't get burned.
Hi Maria- This is should helpful! Would you mind chatting a bit more with me? I am new to investing (and investing in Rochester!) and would love to learn more from your experience!
Sure. Rochester, NY is a very hot market, there are very few homes for sale. Come this summer, we will have a lot of students needing housing. It would be good to purchase multifamily properties but even with our single family homes we still make money because our rents are high.
I've also been looking at Rochester lately as a place where the RTP is a bit better than in many other markets. I am a first-time investor and am looking for a location (hopefully) where I can get decent appreciation while not having the risk of crazy negative cash flow (like one sees when doing the math on opportunities in Seattle, for example). How would people here assess future appreciation in Rochester? Has the pandemic driven more interest in the city?
@Roberto Kattan @Ethan M. I invest full time in Rochester. Feel free to reach out. Also join the Fbook group Upstate NY Real Estate Investors lot of good stuff there.
Hi Roberto! I bought a triplex and duplex in Sept 2020. They're fully renovated and rented to U of R and RIT college students and grad students. They're located in PLEX. In 2021, they have appreciated 16%. Cash flow is great, much better than cash flow at my condo in Baltimore. Since then we have purchased 3 single family homes in the 19th ward, Strong Neighborhood and Ellwanger Barry, all close to the U of R, Strong Memorial Hospital and Highland Hospital. We are in contract for another SFH in the Strong area. I self manage. I have contractors and home warranty for each of the 8 doors. I factor in 5% vacancy, 5 % cap ex, and maybe $1600 lawncare and maintenance for all 4 properties. I made one of the homes in Rochester our second home, and our first airbnb. So far so good. I love Rochester, and I have helped three mentees purchase there too. Bidding wars are crazy. People paying 30-100k over asking. Analyze well so you don't get burned.
Hi Maria- This is should helpful! Would you mind chatting a bit more with me? I am new to investing (and investing in Rochester!) and would love to learn more from your experience!
Hi Tracy! Did you close on your property ? You can send me a DM.
Hi Roberto! I bought a triplex and duplex in Sept 2020. They're fully renovated and rented to U of R and RIT college students and grad students. They're located in PLEX. In 2021, they have appreciated 16%. Cash flow is great, much better than cash flow at my condo in Baltimore. Since then we have purchased 3 single family homes in the 19th ward, Strong Neighborhood and Ellwanger Barry, all close to the U of R, Strong Memorial Hospital and Highland Hospital. We are in contract for another SFH in the Strong area. I self manage. I have contractors and home warranty for each of the 8 doors. I factor in 5% vacancy, 5 % cap ex, and maybe $1600 lawncare and maintenance for all 4 properties. I made one of the homes in Rochester our second home, and our first airbnb. So far so good. I love Rochester, and I have helped three mentees purchase there too. Bidding wars are crazy. People paying 30-100k over asking. Analyze well so you don't get burned.
Hi Maria- This is should helpful! Would you mind chatting a bit more with me? I am new to investing (and investing in Rochester!) and would love to learn more from your experience!
Hi Tracy! Did you close on your property ? You can send me a DM.
how has your experience been with the PLEX area? I see two homes I might jump on but the area has some "rough" patches. can you recommend a property manager?
Thanks !
Hi Roberto! I bought a triplex and duplex in Sept 2020. They're fully renovated and rented to U of R and RIT college students and grad students. They're located in PLEX. In 2021, they have appreciated 16%. Cash flow is great, much better than cash flow at my condo in Baltimore. Since then we have purchased 3 single family homes in the 19th ward, Strong Neighborhood and Ellwanger Barry, all close to the U of R, Strong Memorial Hospital and Highland Hospital. We are in contract for another SFH in the Strong area. I self manage. I have contractors and home warranty for each of the 8 doors. I factor in 5% vacancy, 5 % cap ex, and maybe $1600 lawncare and maintenance for all 4 properties. I made one of the homes in Rochester our second home, and our first airbnb. So far so good. I love Rochester, and I have helped three mentees purchase there too. Bidding wars are crazy. People paying 30-100k over asking. Analyze well so you don't get burned.
Hi Maria- This is should helpful! Would you mind chatting a bit more with me? I am new to investing (and investing in Rochester!) and would love to learn more from your experience!
Hi Tracy! Did you close on your property ? You can send me a DM.
how has your experience been with the PLEX area? I see two homes I might jump on but the area has some "rough" patches. can you recommend a property manager?
Thanks !
Hi Roberto! I bought a triplex and duplex in Sept 2020. They're fully renovated and rented to U of R and RIT college students and grad students. They're located in PLEX. In 2021, they have appreciated 16%. Cash flow is great, much better than cash flow at my condo in Baltimore. Since then we have purchased 3 single family homes in the 19th ward, Strong Neighborhood and Ellwanger Barry, all close to the U of R, Strong Memorial Hospital and Highland Hospital. We are in contract for another SFH in the Strong area. I self manage. I have contractors and home warranty for each of the 8 doors. I factor in 5% vacancy, 5 % cap ex, and maybe $1600 lawncare and maintenance for all 4 properties. I made one of the homes in Rochester our second home, and our first airbnb. So far so good. I love Rochester, and I have helped three mentees purchase there too. Bidding wars are crazy. People paying 30-100k over asking. Analyze well so you don't get burned.
Hi Maria- This is should helpful! Would you mind chatting a bit more with me? I am new to investing (and investing in Rochester!) and would love to learn more from your experience!
Hi Tracy! Did you close on your property ? You can send me a DM.
how has your experience been with the PLEX area? I see two homes I might jump on but the area has some "rough" patches. can you recommend a property manager?
Thanks !
awesome! thank you, i will do just this!
I am trying to do my first time real estate investment. Is 200K house near UofR area a good real estate investment?
Update: Thanks for all of your comments and suggestions, much appreciated. I secured my first duplex in Rochester and it is fully rented generating better than expected returns. I am in negotiations for a duplex and triplex to get me to a total of 7 units. I am currently managing the duplex myself but think will need a 3rd party managed for the the 7 units. Any suggestions on solid management companies in the area? I have heard a lot of horror stories so am a bit hesitant.
Update: Thanks for all of your comments and suggestions, much appreciated. I secured my first duplex in Rochester and it is fully rented generating better than expected returns. I am in negotiations for a duplex and triplex to get me to a total of 7 units. I am currently managing the duplex myself but think will need a 3rd party managed for the the 7 units. Any suggestions on solid management companies in the area? I have heard a lot of horror stories so am a bit hesitant.
that is awesome. May I know which part of Rochester you were able to secure the first duplex?
@Muditha Halliyadde I invest full time in Rochester--feel free to reach out with questions.
Hey Robert. Like Adam mentioned, it's not a good neighborhood. I am actually under contract for a three unit a bit further South-East from there, closer to the river. Our other rentals in completely different areas, we have a duplex in Penfield (east side suburb, our primary residence) and a duplex in the south wedge. Over 6 years, our south wedge property has appreciated 40%, rents have gone up 45% (granted, we put some work into the units), and we've had 1 month of vacancy. Tenants have all been either students or recent grads.
It's going to be a completely different story with the triplex we are purchasing. We are expecting very little appreciation and more tenant issues (one tenant is currently not paying). It is the first property where we are going to use a property manager. It depends on what tenants you have in the property, but I personally would be hesitant to remote manage.
It just depends what you are looking for though. I'm happy to chat if you have any questions about the area and market.
Hi Tim,
I am new here and looking to close my first property in Rochester. Could I please PM you to pick your brain a bit more on investing in this area? Thank you!
I'd be happy to, feel free to reach out.
@Tim Corey hi Tim can i ask your opinion on the Upper Falls area? zip code 14605. i am in contract with a 6 unit there, it is currently occupied but a management company i briefly spoke to denied to manage the property due to the area. im on the fence wether i should go with it.
@Muditha Halliyadde I invest full time in Rochester--feel free to reach out with questions.
hey Martin can i ask your opinion on the Upper Falls area? zip code 14605. i am in contract with a 6 unit there, it is currently occupied but a management company i briefly spoke to denied to manage the property due to the area. im on the fence wether i should go with it.