All Forum Posts by: Shannon Sadik

Hi Brian I am an investor in Rochester. I don't think turnkey investing is looked down upon. I personally would love to find a house that didnt need any work but it is hard to find a deal or make a profit on a home that is already fixed up.  Those are ready to go and then you are competing against retail buyers (homeowners) who are willing to pay more. There are certainly turnkey properties here, and you can certainly find homes to buy for $60k cash but they are in not so nice areas. It really depends on what type of renters you are comfortable with. There are pros and cons to renting in these types of areas and you can read all about it here. But these places will need some work before renting to each next person, as I hear they can get trashed. That is when you can use a property manager to hire someone. Hope that helps!

Yes, I would definitely be interested! 

Kyle, I applaud you for being so forward thinking at such a young age! When I was your age, I was just trying to figure out how I was going to pay for my next meal! I think I remember you wrote in another post that you had quite a bit of money saved up? If that's the case, and if you cannot get financing (either b/c you don't have established credit or b/c you have a part time job), then you could try buying something in cash, doing owner's financing (where the seller finances the house for you, acting as the bank, this happens mostly with people who have paid off the house already, a lot of times older people), or a rent to own (but oftentimes this isn't a good value for your money so be careful and research this a lot!). 

At your age, it would be very easy for you to rent all the rooms in your house to buddies. That way they help you pay off all the bills and hopefully you make a bit extra on top. This will give you good experience on setting boundaries and expectations on receiving rent on time, handling tenant concerns, handling deposits, etc. I would encourage you to look at the spreadsheets available on here to run numbers and see what all it entails to own a home. When I was your age, I had no idea there was so much, so this will give you a good idea of how far your money will go. I'm sure you have an idea of what students your age are willing to pay in rent so work backwards from that, figuring out exactly where your price point for everything needs to be in order to cover everything and make the house work for you. 

Definitely use this time to work under someone and learn the business. That will be invaluable for you in the long run and makes you money now! Just call every Property Management company you can find and see if they are hiring.

Thanks for the comments! 

@Account Closed  we have taken into account the lack of rent on the one we would live in. 

I just sent you a message for someone that I have started working with. He may be able to help you. 

Hi, 

I'd like your advice on a buy and hold I am contemplating purchasing. It's pre-MLS, so I have to make a decision fast.

Asking price: $499k. Lender requires 25% down for a 4plex with conventional financing, or I can do as low as 3.5% down with FHA BUT that requires $516/mo for Private Mortgage Insurance.

We could put 25% down, but I don't think it would be wise. We can re-fi and lose the PMI once we hit 25% loan to value. If my calculations are correct, that means by Y9 or 10, we could refi.

Possible scenario: 

Offer price: $475k (my realtor thinks this is reasonable number since it hasn't gone on the MLS yet and these deals go quickly; thoughts?)

Rent: 4 units x $1500/mo=$6k

PMI: $516/mo

Property taxes: 4% (I know. It sucks)

Down payment: 5%

+ mortgage, 15% capex/maintenance reserves, insurance, and $800/yr for all tenants' water

No Property management as we will do it ourselves

Vacancy: 0% (it's a highly desirable area and these are very nice apts)

No additional work needed

Cash on Cash: 30%

Net Cash flow: $609/mo. 

We plan to live there for a few years so we could actually live in highly desirable (and expensive) area for $665/mo. 

For the money down, and the area, it seems like a good deal, but this is a LOT of money and this is our first buy and hold so I'd appreciate your advice! :) Would you buy this apartment? What would you put down? Is it worth it with the PMI?

Hi Jennifer, glad to have you here! If you ever find a property to wholesale in Monroe County, particularly in or near the city, let me know as I may be interested.

Welcome @Luis Pichardo ! I am also a newbie investor to the Rochester area. Best of luck to you! 

I just moved to Western NY, Rochester, to buy some investment property and everything is going like hot cakes. I have tried to put offers in on 4 homes in the last week. Each one received over-asking in less than one week. One just came on the market yesterday and already has 3 bids, probably more will come by end of day, my realtor says it's price low so will def go over asking. If you were selling, now would be a great time! Not so great for the investor, though--at least the ones that actually know what they are doing. I never can understand why investors actually cause the price of a home to drive up with all of their bids...

I would also be interested in the answer to this as I am looking at a home that is in pre-foreclosure as well. I'm not sure if we would have to negotiate with the bank or the home owner at this point. It's been in pre-foreclosure status for over a year.