Albany NY? Good or not?

Question

I'm thinking of purchasing a multifamily in Albany. Any thoughts? Concerned about taxes! Or the Harrisburg PA or Jacksonville FL areas. Could use some solid guidance please.

Brian Rosher · Answer

Albany has very steady rental pool for the reasons you described.  This also keeps property values up though.  There are other neighboring towns in the area which offer better returns, but taxes are a given up here and should be factored in advance.

Joshua Lupo · Answer

I really like that property taxes are being discussed as those seriously can be deal killers especially in Albany, Schenectady and Troy. If I had the nerve I would absolutely explore outside of NY markets that had far less taxes. Definitely need to factor them into your numbers . I don't think Troy should necessarily be avoided all together and I personally own units in South Troy near Hudson Valley CC where there has been a spike in commercial development. Saratoga county is appealing because of good schools and lower taxes but housing prices are bloated and I think could be hit hard in the next downturn. Places just outside of that area like Waterford, Watervliet, Cohoes and even Green Island are worth exploring as they are somewhat tertiary markets and still have deals that pencil out. I am always intrigued by parts of Schenectady but they consistently have some of the highest property taxes in the area and very much a hit or miss kind of city.

Joshua Lupo · Answer

I don't know if it is just me but I feel like when I analyze properties in Schenectady county I have a much easier time making sense of the numbers than what I see in Albany and Troy? I almost do not even bother with Saratoga county because of how bloated their prices are and yes Albany has a solid renter base but when I am evaluating most properties, based on how they are being listed I am often finding 5-6 CAPS vs Schenectady where consistently in "decent" areas I am finding 9-11 CAPS? Anyone else notice this and can anybody explain why, at least on paper, Schenectady seems highly favorable for investing?

Ryan Vienneau · Answer

I own and manage properties in all those counties, and right now Albany is at the height of a huge bubble, and Troy is close behind.  Just 3 years ago you could find double digit cap rates in both cities, now not even close.  Saratoga has always been stupidly high, almost impossible to cash flow.  Schenectady has also heated up a lot, but is definitely the best for cash flow right now.

Fred Weinkauff · Answer

Good as compared to what? That’s a very broad question. Albany has many different areas to invest in.It all depends on  What you are looking to do.

Meghan Cheek · Answer

Saratoga county is better in regard to taxes but property values are higher and affordable multi-family units are hard to come by (not impossible but difficult).  Albany does have great rental potential, like everyone else has said just factor the taxes into your numbers.  Neighboring cities like Troy, Cohoes, Waterford, Watervliet are more affordable but higher risk (more C class neighborhoods), just watch out for areas close to the water that require flood insurance.  If you're worried about taxes I would consider another state, NY is not changing and taxes will only continue to go up.  If you're comfortable investing out if state there are better markets.  Good luck!!

Ryan Vienneau · Answer

If you want to see a detailed breakdown of one of my Schen properties with numbers and pics, I wrote a blog about it here.

I'm planning on doing a post on my others soon.

Account Closed · Answer

take this with a grain of salt since I don't know much about the economy there.  But my brother in law works for ge and it's a huge for jobs in niskyuana (20 minaway) and ge isn't doing well and mass Layoffs are expected.  But just mentioning as something to look into,  not something I know much about.

Account Closed · Answer

Glens Falls is growing- cheapish properties, great rents, strong rental market. We have been seeing an influx of people here due to Saratoga prices, global foundries ect. A lot of people commute from Glens Falls to the southern counties. The Glens Falls market has been great but super competitive with low inventory right now.

Ryan Vienneau · Answer

My Schen duplexes are 12%+ cap rates and always ooccupied.  Schen, Troy, and Albany all now require onerous rental inspections, so that's a wash.  Tax rates are almost all identical and ludicrous in Albany, Schen, or Renss counties, so that's also a wash.  Saratoga is only county with reasonable taxes, but prices are crazy.  You need to hit 2% rule around here to overcome the taxes.  The catch in Schen is that BRRRR doesn't work on smaller MF because they don't appraise well regardless of income or condition since there are so many dumpy properties around, appraisers punish Schen duplexes/triplexes.  So, COCR is everything in Schen, and you need money down because you can't refi your cash out.

Albany NY? Good or not?

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