All Forum Posts by: Barry Cohen

Good luck @Jake Kodweis, Rochester is a good market to invest in. There is a big investing community there, reach out and ask lots of questions. 

David, as a licensed home inspector, having a construction background is not always a plus. If you have an interest in homes, building etc, that is the value. You can learn all you need to know, as a inspector is a overall generalist to the building. Of course, it will take time to gain the experience by actually doing home inspections. There are many companies that hire without construction experience as they like to train people the way they prefer to do inspections. You may want to see if there is a local ASHI chapter as go to a meeting and do some networking. Good luck.

I to live on Long Island and invest in Rochester. I have 2 duplexes and a fourplex. I recommend going and visiting some properties to get a feel for what these older homes are like. I bought a property based on my realtors suggestion sight unseen and took her word for and the home inspection report and I'm paying the price. GET a home inspection! If you are going to be doing any amount of renovation/repairs I suggest you find a really good PM that you can trust, or gather your own local tradesman (electrician, plumber, handyman) that you feel comfortable with. What I have found with these older homes is that the capex and maintenance costs is always way more than I expect and has most definitely cut into my bottom. Make sure that you have a current CO, or preferably one that doesnt expire soon because the city will come in and I can guarantee you they will find plenty of repairs that they will require. I dont visit the properties often enough, but stay on my PM's back for all issues. Rochester ofters some great opportunity, but you have to make sure you are buying the correct house. Good luck. 

Question for fellow Rochester Ny investors. In process of selling one of my duplexes. The inspection revealed a pinhole leak, deterioration in water main. Buyer is requesting it be replaced. This requires a deal of digging up and replacing entire line out to street which I really do not want to do or incur the cost. Does anyone have an idea of what the cost is in the area to replace water mains. I'm leaning towards offering the buyer a credit. Thoughts, suggestions.

Thanks

Edward, most home inspectors generally will not provide estimates for repairs found during a home inspection. It is out of the scope of a home inspection and could make them liable if they give a quote.  If you purchase a property based on that estimate and contractors come in double the estimate.....you get the picture. Being a home inspector, I would never give estimates, nor do any inspectors that I know. If you want a inspection with details of what NEEDS to repaired, I would be more that willing to help.

Wes, how much is this property? Considering the issues that you have to take care right off the bat, you may think twice. There are so many properties available in the Rochester area ( a lot of garbage ) that you can likely find a similar property without so much needed work. Also, I have found with these older homes, the $200 month maintenance you allowed will not cut it. 

Hi Chris. Good luck with the renos of the new properties from afar. I just took a quick look at your blog. While I was happy to see that I am not the only one that has consistent monthly issues with these older "cheap" home in not so good neighborhoods, I certainly feel your pain. Although on paper the cash flow from the Rochester properties look terrific, I to have found my bottom line being cut to shreds month after month with unexpected repairs, enormous costs to get CO's and even section 8 inspections passed. And, a PM that doesn't in my opinion have the best interest for my $ (2nd PM in 3 Years). Who is your PM? I certainly would like to continue getting properties up there, I am finding that it may be better to spend more and leverage the properties, thus hopefully getting better properties and better tenants. I would also be more aggressive buying wholesale properties if I had a trust worthy contractor. The area has potential, but not without pitfalls. Good Luck to you.

Hi Chris,

Congrats on getting back into the game. How are you managing the renovation of these units while you are from afar. My experience has been that the by not being present for such a renovation that the cost control becomes a issue. I suppose you have a trusting contractor??

Id be interested in joining a LI group as well. Bmcinvestor@gmail.

Thanks

As a home inspector, if the home has knob and tube wiring, I would say you need to budget for a total replacement of the electrical system. Aside from the fact that you may not be able to get it insured, it is a major safety issue that you dont want to be putting yourself into. You likely know this already,but it needs to be upgraded as it IS a fire hazard. Make our decision wisely.