Investing in Upstate NY...Yay or Nay??

[Auria Moore]

Hi Guys!  How do you feel about investing in multi-family units in Upstate NY (specifically Schenectady) today?  I know GE was a big draw back in the day in regards to employment, but I'm not sure about the current market.  Gentrification has taken over pretty much all of New York City (the 5 boroughs), so I'm trying to think outside of the box.  Any thoughts?

[Vitaliy Volpov]

Hi Auria,

I invest in several areas around the Capital Region, including Schenectady. Just like any city, in Schenectady, there are some good parts and some bad ones for investing. The main downtown strip has undergone a temendous revitalization in the last several years. Also, the area around Erie Blvd has seen a lot of growth, including the new casino that opened not too long ago. There are also some new construction projects ongoing. So, the area has definitely seen some significant improvement. What remains tough is the regulatory environment. Schenectady code enforcement is very strict and some would say difficult to work with. Schenectady also requires a new Certificate of Occupancy every time you turn over a unit, which comes with a fee to the city. Depending on the quality of the units and the location, the tenant base may be challenging as well.

I think overall, the area is on the upswing and there are definitely still a lot of opportunities to find properties at a discount. If you decide to invest in Schenectady from afar, I would suggest getting in touch with a local investor/real estate agent to help you. Hope this helps.

Vitaliy