All Forum Posts by: Steve B.

I've looked at a few in Mont Pleasant and personally I would stay away. The casino will not affect anything in Mont Plesant, it's too far away and divided from the rest of the city by 890. A lot of investors have given me the same story, that rents are under market because they let the property go for so many years. The fact is nobody wants to live in Mont Pleasant unless they have to. Interesting too is someone at Maddalone told me if I bought a property in Mont Pleasant or Hamilton Hill they wouldn't even manage it! 

If you still want to buy in Schenectady I would stick to Stockade, Downtown, and Upper Union St neighborhoods. This is where people want to live, rents are high compared to the property values, and deals can still be found. Around Union college is good too, just stay between union and Nott streets, go across those streets and your rents drop quite a bit.

If you want to know more how the casino will affect Schenectady, google stories about how the Seneca Indian casino affected Niagara Falls, NY. Similar towns with many abandoned homes because most of he manufacturing jobs left town. Basically 10 years later Niagara Falls is the same, the city has wasted all the casino revenue on special interest projects, and the homeowners still have absurdly high property taxes. The same will happen in Schenctady, corrupt liberal politicians will never change.

@Wesley W.

Get rid of that pool ASAP! Of course summer is almost over here too, tough judgment call, but it is a huge liability waiting to happen. Even though its not your pool, its your property. If some neighbor kid went in there and something bad happened, you would be in trouble, not the tenant. Our state laws do not favor the landlord at all, but you probably already know that. Also New York state code requires at least a 4 foot high fence around the pool, if thats not there and someone from the town happens to drive around and see the pool, they could fine you. Not to mention the 500 gallons of water you will be paying for when the bill comes out!

Honestly I would have never thought a tenant would go through the expense of putting up an above ground pool in a rental. I would have never thought to put a 'no pool' clause in the lease, thanks for sharing the story! I once had a hot tub in a rental but I got rid of it, didn't want to risk the liability plus I know the tenants never did the maintenance on keeping the water clean. 

@Oudit Rambharose

Is the property located in Schenectady? If so, what street/neighborhood? Typically rents that low are in the less desirable areas. Need more details on the property, is it a multi/single family, how many bedrooms, etc. Also who is the management company? I've been looking at quite a bit of properties in Schenectady myself, and really the only way to invest here is to get a really good deal that will have large cash flow from the beginning, otherwise I wouldn't do it. 

I am a member of Action Investors Network (AIN), the areas only real estate investor club that I know of. It's a good group and great networking opportunities. Message me for the details!

I wouldn't do this deal either. I personally want $200/door or I won't consider it. Everyone has their own preference though. I have found deals with these numbers, however they needed extensive work and most good contractors in the area are extremely busy right now, so I've passed them up. The MLS in our area is tough to find anything good!

I would add a cap ex into your numbers as well. I use 7% for the century old homes. This might be high, and maybe others can chime in on what they use. As a previous owner of a 100 year old rental, things WILL break. For example on that house, I had to replace the front door. Sounds cheap until you realize way back then door frames were much taller than modern homes, and the walls were crooked. Had to pay a contractor $$$$ to construct a custom frame. Also had to replace the original cast iron drain pipe. Not cheap either. Only good thing is it's a tax write-off on these things.

good luck on whatever you decide to do

@Heath Bressette

The Delaware ave area is a decent little neighborhood just south of downtown albany. Delaware Ave itself feels like a main st in a small town, with lots of shops and restaurants, very walkable. I used to live near the UAlbany main campus off of western and fuller rd, and I will say that is a great area to live in. Despite the proximity to SUNY, the area immediately surrounding the main campus isn't filled with students, most of them live closer to downtown in the 'student ghetto.' Since the nano campus on fuller rd has blown up in the last 5 years, that area has become very desirable, but its mostly single-family homes around there. Also the Central Square neighborhood is probably the most desirable in the city, which is the area immediately west of the empire state plaza and goes west to Washington park. However, homes there are generally very expensive, you will have to work hard to find a deal there. Stay away from the arbor hill and south end neighborhoods unless you want to deal with bullet holes in your windows lol. There are other questionable streets in albany as well, use your best judgement, as a whole I think you will find its not nearly as run down as Syracuse. 

As far as Delmar goes, its a very desirable place to live being so close to Albany. A lot of doctors and professionals live there. Being in the Bethlehem school district also plays a part, as its regarded as one of the best in the area. That being said, you will pay significantly more for property here than in Albany proper. However if you can find a deal on a side-by-side duplex in Delmar, your vacancy rate will be near zero, as long as the property is in good shape. I've been trying to find a side-by-side duplex in the suburban areas surrounding Albany and Schenectady and so far haven't found one that fits my criteria for long-term cash flow. For one, these type of properties are rare in this area, and second, if its on the MLS the owners want a mint for it.

I am curious to know, what made you move here from Syracuse? 

@Heath Bressette

Welcome to biggerpockets! This site has a ton of great information and people willing to help you as you begin your journey. 

The Albany area is indeed more expensive than Syracuse area but our local economy is worlds better than Syracuse. Lots of growth going on (by upstate NY standards) lots of colleges, the state government, hospitals, etc. Also on average property taxes are lower.

House hacking is the way to go when just starting out, good luck on your duplex search.

@Anthony Favoroso

What town did you buy in? In Albany I know investors get income year round as leases typically start in June, even if the students leave for the summer.

@Reyna R.

If you or anyone else finds a good, reliable, honest general contractor in the Albany area please pass their name on to me please! I'm looking for one as well.

@Paul Mendel

Do you have experience renting to students in Albany? Why do you say they are destructive? I agree that in general they are harder on properties than other people, but I still feel if you do your due diligence and check them out throughly a lot of problems can be avoided. Just want your thoughts on this as this is a sub-group I've been interested in as well.