For area it depends on your strategy and target holds. Rochester offers a wide variety of options to any investor. MFR can be found in any investment class in Rochester.
Demand outweighs supply at the current time in regards to purchase and sales for most options.
Rochester is a great area for cashflow but with such comes its challenges. Overall i see rochester as a great rental area for years to come. Demand is high currently most units rent or sell within 30 to 60 days if at market rates and not overpriced or in extremely tough areas. You must know the area pretty well as things can change literally by streets. 19th ward,southwedge and suburbs are always the better areas but all depends what your goals are
Be careful. Don't overpay for properties. What's happening right now in Rochester, NY is insane. I've been seeing multi-family properties being listed for at times over $100,000 what they are worth. Are rents increasing, yes. Are places appreciating, yes. But, the deals that everyone sees are never the deals that should be bought. You cannot trust the marketplace in times like this.
Some duplexes I was looking at in Upper Monroe/ Park Ave areas 7-8 years ago for low $100s are now being sold for high $200s - low $300s.
Indeed, it is crazy right now. I'd imagine deals in those areas are hard to come by and I really don't think there's much room to grow or add value at those prices.
Can rents on an duplex on Suter Terrace really justify a $300K+ price tag? Maybe, but these are also very old, old houses which will take time and money to maintain.
I would stay away from some of those areas and let it breathe for a bit.
I should also mention that I am kicking myself for not purchasing then! -_-
Rochester, NY has been great for me. Find something that is not going to kill you and jump in.
I have to agree with the general sentiment here. Rochester is a great rental market, but in general there is some significant inflation of prices right now. Its important to keep a few things in mind, we have old houses that will need work to repair, we have high property taxes (2-10x other areas), we have very diverse neighborhoods (street by street). We also have a great sense of community, some great employers, and a very strong rental market. My advice is to stay away from the war zones, make sure you have some cash to do the required repairs, and work with some good local people.
At the end of the day I want to see my community benefit from landlords by providing a needed service to clean up neighborhoods house by house and provide safe and healthy places to live for everybody. Good luck!
@Chris Mackey I have been investing here for over 12 years now. Have seen the market go up steadily BUT in the last 2 years the market has become hot and homes are being overpriced. Several factors are effecting this boom. Mainly favorable interest rates and out of town buyers over paying for properties.
There are still deals to be had here if you are a cash buyer. I suggest speaking to an Investor/realtor that can guide you better. Look up @Matt Harris he is great and knows the numbers well. Good luck !
@Matt Honeyford Thanks for your blunt honesty. As a new investor, I'm still in my research phase. I'm looking towards North Carolina but everyone around my area seems to be hooked on Rochester.
@Aqil Dharamsey thank you for your response. Do you feel any of the surrounding areas are of a better value? My partner suggested Fairport, Pittsford, and Penfield.
In my opinion the prices in those area are much higher and although the rents are higher as well, the ROI is much less. Obviously these areas are very nice and your tenant pool is great with minimum headaches. At the end it all comes down to your investment strategy and tolerance level.
If you can stomach the day to day management, evictions, and repairs then there is money to be made in the inner city.
@Lulli Debrosse the only difference in North Carolina is cheaper taxes. Rochester is a bit expensive but the home prices compensate for the difference.
@Aqil Dharamsey my tolerance level for headaches is somewhat low due to me being a first time investor and also it being a state away from where I live.
Initially I'm ok with a little less ROI or cash flow if the area has a more stable/reliable tenant pool.
@Aqil Dharamsey To me NY is too risky. The fact that it's not a landlord friendly state is a major pain point for me. I (as a person starting out) wouldn't touch NY this early in my investment career.
How about Cornhill area? I've owned a MFR there for a number of years.
Western NY is far different from NYC as far as laws go. Personally I wouldn't touch anything near NYC, but Buffalo/Rochester/Syracuse and their surrounding areas are completely different animals.
Rochester is very inflated at the moment but I have scored some really nice deals in the maplewood district recently. Any recommendations on rehab guys?