All Forum Posts by: Ryan Vienneau

I own and manage properties in all those counties, and right now Albany is at the height of a huge bubble, and Troy is close behind.  Just 3 years ago you could find double digit cap rates in both cities, now not even close.  Saratoga has always been stupidly high, almost impossible to cash flow.  Schenectady has also heated up a lot, but is definitely the best for cash flow right now.

Totally depends on what your investing goals are regarding cap rate, cash flow, and hold period.  I own a property management company and several rental properties in the Albany NY area, and you can still find value add deals with cap rates above 8 with positive cash flow from day 1 if you look hard enough.  Metros like Boston and Miami have notoriously low cap rates right now (3 is not uncommon), so I don't see how anything cash flows at those cap rates.  The Albany area has been pretty good to us for returns.

Call Peter Brown at NBT in Saratoga, he's done my last 3 commercial mortgages and has been great.  5.5%, 20 yr amort, 75% ltv, no balloon.  

I use Sarah Dorsey with Knapek, Gabrielle, and Bottini in Latham, she's been great.

I own and manage properties in neighboring towns and am quite familiar with Cohoes, values are very dependent on the block, some blocks are warzones, then next block is fine.  Like most of the capital region, expect most duplexes and multi fams to be 60-100 yrs old, so look very closely at foundations, roofs, electrical, plumbing, and codes, many need to be brought up to current code before renting if previously vacant.  Not nearly the downtown hipster appeal of neighboring Troy, but decent.

Albany's a little overpriced at the moment, but deals can be found that cash flow.  Also keep an eye on Troy and Schenectady, better returns if you buy in the right neighborhoods. 

Congrats and welcome aboard!

We manage properties and are a broker in Troy, it's literally dependent on the block and building as to what's ok, the whole city has undergone a very quick Brooklyn-ification so you need to walk every block and building you're considering because there a lots of properties deserving to be bulldozed still.  You'll have a brand new, warehouse-turned-lofts apartments getting $1800 for a 1BR wedged in between a triplex crackhouse and a Kwik-E-Mart that sells loose cigarettes.  

The Troy hipster phase is in full swing and everyone's building apts there and it's a hot area at the moment, but 99% of properties are 100 year old duplexes and triplexes that are nearing or past the end of their useful lives.  There's also a huge influx of downstate first-time investors that are overpaying for properties, driving prices up, then realizing the rehab/maintenance costs kill them and they lose their a** and sell.  Decent properties right now in Troy near Washington park or River St. tend to be nice but are way too overpriced to cash flow, and you'll understand why those that are "too good to be true" are priced that way as soon as you walk through the door.  

My advice - If you buy a smaller 2-4 unit in Troy that's a good deal, just expect that it is unlikely to be a cosmetic only rehab, you need to budget on major structural/mechanical rehab in most cases so that it is solid when your tenants move in.  There are deals to be found, but you need to look really hard, properties under $60k/unit have lots of interest and tend to go fast and for more than makes sense.  Bringing cash helps.  

Also, the vast majority of contractors there are AWFUL, I would say 70% of our maintenance calls for clients are to fix something that their rehab contractor botched, so get references and go see their work.  And maybe most importantly, pick your property manager before you buy the place and get their input, because the best property managers will not manage ugly properties.

Call Alex at Insurance Agency Group of NY, he's in saratoga.  Personally though, I think that price is in the ballpark, I pay around $1200 for each duplex around here.

Hi John, I can help you, PM me directly and I'll send you our info.  Thanks!