Newbie with some Questions in Rochester, NY

6 Replies | Upstate New York, New York

Hello Everyone!

My name is Bruce and I am an aspiring investor from the Rochester area. I hope to, someday, be able to achieve financial freedom through real estate. I have a long way to go but I’m hoping to start my journey soon. I do have some questions for those experienced Rochester area investors out there that I was hoping to get some help with:

Because I don't have much cash on hand and I want to get started as soon as possible, I am interested in utilizing an FHA Loan and house hacking, preferably a four family in the range of $200,000 or less. My thought behind this is to not only cover the costs but to generate some positive cash flow. From cursory analysis of some properties I have seen on the MLS, this seems to me to be realistic. Is it?

So I have about $8,000 saved up which would be just enough to cover the 3.5% down payment on a $200,000 property but would be all but gone when it comes time to pay the closing costs. In your experience, how much do closing costs generally run on a $200,000 property? A $100,000? Is there any chance in the current Rochester multifamily market of getting a seller to cover the closing costs or do I just have to be patient and keep saving?

Thanks very much for reading and for any help that you can provide!


Closing costs are always more than the realtor will tell you. FHA on a 200k house you're looking at 17-20k all in to close. Might even be higher with expensive insurance or outside factors. Take your time, and make sure you know all of the numbers.

@Martin Grizzanti thanks very much for taking the time to respond! I really appreciate it!

I definitely won't be diving into anything without seriously understanding the numbers. (Even if I am comfortable, I will probably come back here to ask when the time comes just to be sure I'm not missing anything glaring.)

So you're thinking that the chances of working out a deal to have the seller cover the closing costs is a long shot and that I should just be patient and keep saving until I have some more cash?

Do you think that my goal (a 4-unit for $200k that will generate positive cash flow off of only 3 of the 4 unit's rent) realistic?

Thanks again!

Typically, your first deal will never be a slam dunk. I think you should do FHA for the first deal. House hack it. Learn how to be a landlord, and make a few dollars while living for free. I would make sure you have a down payment and enough reserves in your savings where you are not super leveraged.