Investing in Albany NY smart or not ??

10 Replies

I’m new to investing but would like to know if anyone has had experience in rental properties in Albany NY will it be the next big market ?

Albany is not a cyclical market but has always provided solid cash flow due to the amount of local colleges, hospitals, and government jobs.  But if you decide to invest In  cheap properties in D neighborhoods.. that's exactly what you'll get. 

@Kevin Urena Just to reiterate what @George Smith said, Albany is a stable market. You can do well in it, but the odds of it becoming the "next big market" is slim. Like a lot of markets things are selling pretty fast so moving quickly on good deals on the MLS is crucial.

Been looking at the land banks properties @george Smith 

@Kevin Urena I'm a investor in Albany, NY and in my opinion if you can cash flow positive after your operating expenses, debt services, and putting money aside for reserve you'd be buying a good property that being said currently it seems like investors are selling off. They're taking as low of a cap rate possible for their properties to jack up the price of property when they sell it. So when you're selling - looks good based on comparability analysis, but for buyers its to the point of making sure it makes sense for you based on cash flow.

Land bank is cheap - but there's a lot you have to get in line before proposing offers to them for a property.

People always say Albany is a stable market, with the government, schools, universities, etc.... and that appreciation shouldn't be expected. While I think this is a solid point of view, I think there is some room on the upside, but the Capital Region needs to do a better job of branding itself beyond being the state's capital.

We're an hour from the Adirondacks, a couple hours from Boston, NYC, Montreal. Cost of living (and thus cost of hiring, doing business, etc.) here is low compared to cities like those. Regeneron has a major presence here and the nanotech scene has potential, although I haven't been seeing as much growth in this area as I'd like. I'd love to see Albany turn into a tech hub like Austin, Texas.

Could Albany become the Austin of the Northeast, a large tech hub? I think it could. Is it probable, or even likely? No. Our incompetent state government would need to make some major changes and take on some major initiatives.

But... I like to think it could happen. The government has got to do something about people fleeing Upstate. Albany hasn't seen the population decrease that other upstate cities have, but it's not attracting people, either. I see branding Albany as a "tech" city, beyond just a bureaucratic government jungle, as the most realistic solution to this.

Investing is a risk-reward game. Albany is indeed stable for the reasons I mentioned in the first paragraph... government, colleges, etc. But I also see the upside potential, albeit a small one. Not a bad tradeoff in my opinion, minimal risk (relatively) for a potential large reward.

Would love to hear what you guys think about this!

I'm new and trying to get my financial IQ up to par and learning all the main nuances about real estate investing, I was looking at Albany, NY to get me feet wet in.  Currently living in NYC area, so I figured Albany could be an easier market to get into.  I know the area somewhat from my college days.   

@Josh E. I think your absolutely right that’s why I asked because I don’t see ppl running up to Albany at all there is no economic stability besides the schools, and it’s sad that the governor hasn’t addressed this I think what would help the real estate market beside a big tech boost is the legalization of recreational  marijuana up there, give a reason for tourists investors ect to actually visit Albany it will boost the local economy give locals a chance a new business ventures and overall give the area some much needed exposure  

You might want to take a look at some laws that were passed this spring that may drastically change the viability of buy and hold real estate investing upstate.  It's been fast and furious, beginning this April with the "source of income discrimination protections", and now "stayed" evictions of up to one year, all on the landlord's dime:

https://www.timesunion.com/news/article/Sweeping-tenant-protections-for-upstate-signed-13998327.php

@Wesley W. I'm worried that these laws are just the beginning. Frustrating to see, as this is a lose-lose situation for all parties involved... tenants, landlords, and the state economy. Guess the only winners are Cuomo and his bureaucrat buddies, who just won themselves a few more votes

My husband and I are looking to buy and hold in the Cap Region. There's very little to no appreciation but that's ok. I'll hold onto the right property until I'm old and grey as long as it's cash-flowing enough. I'm curious if any current property owners are having trouble with the new laws yet and if eviction has been an ongoing issue for anyone up there. I feel like if you/your PM screens tenants enough that hopefully evictions are rare but reading articles about the new laws passed I am proceeding with a lot more caution than before.

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