Looking for advice about the Ithaca NY market

[Jessica Woodhouse]

Hi all! 

I'm looking to invest conservatively in rent-and-hold properties in the Ithaca NY market. I've lived in or near Ithaca NY for over 20 years. So I know the area inside and out and I also have a lot of contacts in the local arts/music/literary/academic community. I'd like to build a small portfolio of family-friendly, low-turnover Fall Creek or BJM school district rentals that meets that community's needs. 

I believe there's a real niche in the Ithaca market for charming, well-maintained 2-4 bedroom units in the walkable historic neighborhoods -- units that are actually affordable for middle-class families, not just for tenured Cornell professors or for college kids renting at $800 per bedroom. 

No one's going to get rich on this market, especially given Ithaca's high property values and city taxes. But I'm not looking to get rich. I'm just looking to downsize into one of my own units, retire early, and focus on my creative work (which already brings in a modest income that would increase significantly if I had more time to spend on it). 

I'm trying to explore whether this business model will actually work. And if so, how to put together an intelligent business plan moving forward. I am especially concerned about the taxes and licensing/permitting issues in Ithaca -- measures that were theoretically supposed to control abusive slumlords but actually seem to be pushing small-scale sustainable landlords out of business. So I see a potential opportunity, but also a potential risk....

I'd love to hear from people who have experience renting in college towns -- and especially from anyone who has Ithaca-specific experience. Ithaca definitely seems to follow its own weird rules. Just like the bumper stickers say: we are "10 square miles surrounded by reality"!! 

Thanks! 

Jess

[Stephanie Jacobson]

@Reid Allen Williamson that's a pretty accurate observation. Ithaca tends to be a tough market to break into unless you've got a hefty budget, or just find a complete gem before everyone else does. It's strong for student rentals, which can go for $600+ per bedroom, but those start around $400k. It's also fantastic for larger development, complexes and the BRRRR method.

My clients who are looking for investment property under $200k far prefer Binghamton or Cortland, but like I say, you can get lucky in Ithaca if you look. (Cortland and Bing have other issues, like very little appreciation and lower rents.)