Looking to start investing in Rochester

10 Replies

Hi guys,

excited to post my first question in this great forum.

I'm an Israeli, living in Israel, and I am looking to invest in the USA, due to the endless options for real estate assets. I have about 150-200K for investment. My strategy is buy and hold, for at least 5-10 years, maybe sell the asset once property prices in Israel go down (the cycle in Israel is different- prices started rising in 2008, in contrast to the US, where 2008 was just the beginning of prices going down).

I am looking for a solid property (i.e. relatively easy to find tenants, good neighbourhoods with good tenants).

This is my first deal in real estate, so I am not expecting one-in-a-lifetime deals, but rather a solid deal, with solid return, and hopefully a potential for value growth.

After considering several options I decided that Rochester is a good options. I feel I understand urban areas better, it has a strong attraction for students and young professionals due to the university and most of its residentns rent and not own their property.

I started analyzing the different neighbourhoods but would first like to ask you guys:

1. Which neighbourhoods would allow me to find an investment property that will suit my needs? (in the budget of ~150K, cash deal).

2. What type of property should I be looking for? obviously this  is going to be a hands off investment with a local management company running the property.

3. What net yield can I expect to acheive?

4. What value appreciation can I expect to acheive?

5. Could you recommend good agents to help me find investment properties? good management companies? I would really be happy to get personal recommendations, rather than the agents themselves approaching me.

6. Any tips you can offer?

Thank you!! :)

Hi Oren,

Great questions. Many of the answers depend on your criteria for investing.

I have several multi families on the east part of Rochester.

Why don’t you send me a PM and we can communicate via there for more details.

@Oren Pleniceanu

Hi Oren

I have several properties in Rochester.(NY)

within your budget I believe you can find a great property that will produce stable income,

after reading your post - I would like to say I really like your way of seeing thing realistically :-) 

one tip for you , specially within your budget, level of  English and etc.. - I recommend mange the property yourself. you will learn allot doing so and will save yourself a bunch of $$$

I would guess sorta difficult to manage from 2500 miles away? I rather suggest to hire a property manager but be part of making day to day decisions.
There are rough areas all over rochester. I buy everywhere. It's all about how you manage Your tenants and keep a very close up on the big picture.

@Aqil Dharamsey - we must have allot in common :-) I keep seeing you around... we need to talk soon

as for your note above. I totally agree that a professional property manager is crucial , especially in Rochester! 

however, @Oren Pleniceanu is looking to purchase a property in the better areas of Rochester. he will have only 1 property = 1 tenant to deal with. (assuming it will be a good qualified tenant )

that said, I believe that managing a good tenant at a good property should be possible. I recommend it only because I truly believe that for the "learning curve" - doing it on your own is very important.

Hey Oren I’m a partner of Keller Williams in Rochester. I would suggest you look for properties in the 19th ward and corn hill, I also have a buyer with a 6 unit apt building in your price range, shoot me a message, I have a property management company you can do some research on and interview me as well. I look forward to working with you.

@Oren Pleniceanu Since you'll be selling in 5-10 years you want to pick an area where prices are stable, or maybe even increasing.  In the city itself, and with a $150K to $200K budget, the best bet would be the South Wedge.  That area has seen significant price appreciation over the last 10 years and there is still a little room to grow.  You can expect maybe an 8% cap range investment.  Other options are upper Monroe and Park Ave areas.

But you could also look beyond the city to the suburbs with that much cash.

Alternately, and especially since you are not leveraging, you could become a private lender to a local investor.

Originally posted by @Larry T. :

@Oren Pleniceanu Since you'll be selling in 5-10 years you want to pick an area where prices are stable, or maybe even increasing.  In the city itself, and with a $150K to $200K budget, the best bet would be the South Wedge.  That area has seen significant price appreciation over the last 10 years and there is still a little room to grow.  You can expect maybe an 8% cap range investment.  Other options are upper Monroe and Park Ave areas.

But you could also look beyond the city to the suburbs with that much cash.

Alternately, and especially since you are not leveraging, you could become a private lender to a local investor.

 Thanks for the tips @Larry T.

I was also thinking Upper Monre and Park Avenue. 

Isn't South Wedge too risky in terms of lower rent and riskier tenants? Who would be the typical tenant in this type of neighbourhood? I was thinking of aiming at older students and young professionals, which I think would produce more stable incomes.

I was thinking of aiming at a property that would produce ~1400-1500 USD a month, which would hopefully allow me to deal easily with unexpected events (maintanance issues, etc.). Do you think that would be possible with assets in the price range of ~150K USD?

@Oren Pleniceanu I don't have properties in those areas so I'm not the most qualified to say, but I think they'd be similar--tenant wise: students and young professionals.

Upper Monroe you could do for 150k maybe. Park Ave I doubt. 

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