All Forum Posts by: Gary Nestler

Hello Gloria.

I also use CNB for my portfolio loans which are all in LLCs.  Someone there should be able to help you.

Hey Alley.  My wife and I were in a similar situation over 25 years ago.  I have 31 units now.  She’s a teacher with the w2 job and I owned a delivery business that I sold in 2019.  My wife has the stable w2 job which is important to get loans.

If were you now I would find a single family home in the city if Rochester and see if you like being a landlord.  People talk about the 1% rule.  In Rochester I try to get 1.5 to 2% rule because the property taxes are too high compared to most of the country.  Just make sure it’s something you can sell and in a decent neighborhood so get your money back if you find out it’s not for you.  I think to start flipping in this sellers market would be extremely difficult right now for someone with no experience.  There are people that flip houses full time in Rochester that will most likely scoop up those potential flip houses before you or I would ever see them.  

Also I would consider joining a meetup here in town to find out what other investors are doing.  You be able to find someone to partner with if you really want to flip a house.

Well good luck to you.  Hope this helps.

Good job Mathew on getting out of Rochester NY.  Go Bills.

It sounds like you’ve done your research and are well on your way to success.  The only things I would add is to join a local Real Estate investment group where you can bounce your ideas  off of.  You’ll meet other locals with the same aspirations as you.  It’s helped me a ton here in Rochester.  

Also try to find local private money lenders to buy properties in cash and later refinance with a bank.   It will help you get bigger faster.  Just make sure you have a good real estate attorney.

Good Luck.

Hello Sebi   Welcome to Rochester.  I have used the same agent for 20 years.  Peggy Zecher at 585-370-3137.  She’s a great negotiator and works with multiple investors in the area.

I also own 2 houses in Buffalo near multiple colleges.  They are best performers and have shown the best appreciation.  Rochester is good also especially for cash flow but be careful of the individual neighborhoods.

Good luck.

I agree with James McRee.  Comps are most important in the appraisal process.  You may be surprised how little difference repairs make in increasing you home value.

Depending on your hard money loan would determine how the best approach to refinance. I usually only use hard money if the price is well below market value. I use a year interest only loan with no prepayment penalty. I'm always sure that within a year and the BRRR method I will always be able to get my lenders their money back. I also have a good relationship with my bank to know exactly they would cut me off as far as my debt to income ratio for the refinance. Even those numbers change over time because I have a good track record. Hopefully you bought the property so that even with appreciation you should be able refi and repay your lender.

First of all Congratulations Karen for taking action and buying your first rental property.  My first reaction to doing rehab on a property that’s occupied is to be careful.  Unless it’s safety related which you should always fix right away you may want to hold off on major renovations with the property all ready occupied.  I would wait until the property turns over.  That way you can usually raise rents to off set the cost.  Leaky roof,  water leaks, smoke detectors-  definitely fix right away.  Cosmetic stuff, I would wait til the property turns over.

Julian.  I would be careful with a full gut on your first rental.  Unless you’re in the construction industry and you really know what you’re doing.  It might be worth it to find something a little more ready to go than a full gut.

Ben.  I’ve never heard of housing fairs for off campus private landlords.  That might be for housing the college owns.  I would think it would be a liability for the college to recommend a private residence.  I know the University of Buffalo built a bunch of townhouses that look like private homes but the university owns them.

Hi Ben.  I have 2 single family houses in Buffalo by colleges and 1 in Brockport NY which is a college town.  These 3 are my best performers.  The challenges are that you need to start showing the place earlier than normal rentals.  I’m already placing adds for the fall semester now.  Also make sure you have them pay a deposit and sign a lease right away because they will usually keep looking.  They usually don’t understand what signing a lease and paying the security means.  Also I make them have their parents co-sign if they plan to make monthly payments and are not paying the entire rent for the semester thru a loan.

As far as damage goes,  they’re not any worse than my other properties.

I agreed with Sam.  I think we are definitely at the top of the market.  But if the property cash flows you should be safe.  If you are thinking about refinancing, now may be the time and sit on that money until prices come down.  Your existing inventory should be safe as long as you have positive cash flow.