Flipper/Rehabber · NJ · Member since 2021 · 2 posts · 1 vote
Hello everyone,
I've just moved to the East Coast. My wife and I are investigating whether to invest in Oswego, Syracuse, Auburn or Rochester NY. We are looking for cash flow. We're ok if the home multifamily property doesn't appreciate a lot. I've been building and flipping for nearly a decade but I've only been a landlord a few times. Where do you recommend and why? Pros and cons?
Real Estate Broker · Oswego NY · Member since 2020 · 4 posts · 4 votes
5y
Nicholas,
I can only speak about the Oswego, NY market. I’m both an investor/landlord in this market as well as an agent.
Student housing gives the best opportunity for cashflow in this market. There is a “changing of the guard” currently happening with older landlords selling individual properties and small groups. I’m working with 3 landlords that own nearly 70 properties in Oswego combined, and each are stepping towards retirement. I’ve sold 15 in the past 4 months...
As for the remaining residential income properties (families & individuals,) this market is still strong. The cash flow per unit is less, but the prices are still fairly cheap. Yes, there will be a larger chance to have a legacy tenant who has not paid due to covid.
Pros - strong SUNY campus with several off campus students, CAP rates of 8%-18% (depending on deferred maintenance and specific characteristics.)
Cons - typically older homes, students create more work with annual turns and more damage typically, lack of quality management in this area (very few quality managers.)
Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
5y
For cash flow in these cities you're probably going to be looking at lower end rentals where the Covid eviction moratorium is a problem with the tenant base.
Real Estate Broker · Oswego NY · Member since 2020 · 4 posts · 4 votes
5y
Nicholas,
I can only speak about the Oswego, NY market. I’m both an investor/landlord in this market as well as an agent.
Student housing gives the best opportunity for cashflow in this market. There is a “changing of the guard” currently happening with older landlords selling individual properties and small groups. I’m working with 3 landlords that own nearly 70 properties in Oswego combined, and each are stepping towards retirement. I’ve sold 15 in the past 4 months...
As for the remaining residential income properties (families & individuals,) this market is still strong. The cash flow per unit is less, but the prices are still fairly cheap. Yes, there will be a larger chance to have a legacy tenant who has not paid due to covid.
Pros - strong SUNY campus with several off campus students, CAP rates of 8%-18% (depending on deferred maintenance and specific characteristics.)
Cons - typically older homes, students create more work with annual turns and more damage typically, lack of quality management in this area (very few quality managers.)
Handyman · Mexico, NY · Member since 2018 · 40 posts · 13 votes
5y
Hello Nicholas Kapner and Jeffrey Tonkin. Later this summer I am going to be trying to organize a group meet up in the Oswego County. The only thing that is holding me up from doing it now is my renovation in Northern VA. I am anticipating being done by July. If there is already a group formed there I would be interested in joining but I have not seen one. So I will start my own, would either of you be interested? I also have a property with 5 doors in that area that is zoned as Class C Commercial. It needs a lot of work. It is located beside Oswego lake and beside 2 Marinas. The main customer base would be fishing tourist. I am open to any and all offers, especially offers of partnerships.
As a 1st time multi family investor in Cayuga County, New York.
I'm looking at purchasing 3 properties for a total of $365k. Each from different sellers all off market deals. Rent rolls show people are paying in a duplex, 3 plex and the 4plex is section 8. Duplex and 3 plex are in good shape. 4 plex fully gutted and remodeled 3 years ago under a grant from section 8. Duplex is $70k in Auburn, 3 plex is $120k in Oswego, and 4 plex is $140k in Auburn. Duplex rents total $16800 annually, 3plex $28k annually, and 4plex $38,400 annually. CAP Rates are great after snow removal, lawn care, taxes and management fees. I'm doing 3 loans at 25% down at 4% for investment loans. I understand there's some risk with the moratorium however that should end by the time I close.
Anything I'm missing here?
Thoughts on how the end of the eviction moratorium will affect multifamily family housing prices? Monthly rent prices? Is there somewhere else I should look at?
Our main goal is cash flow and to have clean livable homes for tenants. We saw quite a few slum lords and find it appalling people are renting unfit places.
Real Estate Agent · Naples, FL · Member since 2016 · 298 posts · 268 votes
5y
@Nicholas Kapner I go with the single family home model with section 8 tenants in these areas. Works really well and kept me solid during the pandemic.
I've just moved to the East Coast. My wife and I are investigating whether to invest in Oswego, Syracuse, Auburn or Rochester NY. We are looking for cash flow. We're ok if the home multifamily property doesn't appreciate a lot. I've been building and flipping for nearly a decade but I've only been a landlord a few times. Where do you recommend and why? Pros and cons?
Are you thinking about a short-term rental?
Although STRs generate way more monthly ash flow, I think there are some rules restricting them in NY, I'm sure about SFHs but I'm not sure about multi-family houses.