Upstate NY Rental property investment (Rochester, Albany: appointed, sale, foreclosed)

[kcanazzi]

Moderator cut: realtor soliciting A typical single family house may sell around $30000 US and rent for $625 to $650 per month. A double may sell for $45000 US and rent for $900. Taxes are aound $1000 per year. The lower US dollar should make this a good investment for you.

[CAugust]

Originally Posted by BuffaloTransplant

I live on the Alden/Lancaster border and I am NOT an agent. Depew, Lancaster and even Alden had multiple houses. If I were going to do this, I'd look at Lancaster village and Depew in the Lancaster school district. Check the Lancaster Bee, the Metro Pennysaver and the Buffalo news for prices things are renting at. Lancaster and Alden are lovely and safe, as is much of Depew ( lower rents there) People like to rent closer in, so I wouldn't go out beyond Lancaster village.

Yes, Buffalo Transplant is correct as well, those homes will be a little more than the city, but people tend to rent there for school systems as well. You will find a lot of folks willing to rent in Williamsville for the school system, however those homes are a bit more expensive and not really a lot of two family properties compared to other areas. But in Williamsville you can charge a lot more rent, there are complexes here, beautiful, but rents go way over 1k a month, usually they are rented to professionals from UB, working here but perhaps not staying forever.

Good Luck
Colleen

[agensop]

Depends on the area and the size of the house. What area in rochester are you looking at. Rochester housing wise is pretty affordable for what you get. RGE can be a bit brutal at time but thats what your tenants have to worry about

Originally Posted by bayberay

I have mostly interested in Rochester area. I can see house prices around 50k and rents goes like 1k. Think that I don't understand is why people who can afford 1k rent but don't consider buying house.

Is there something wrong?

[Njrover0216]

Watertown, NY area is expanding because of the military base there. They are not going to have enough housing to house the soldiers and their families. So housing is going to be in demand there.

[bayberay]

Is there any landlord from Rochester area ?

I can see there are a lot of inventory with rent to cost ratios above %2 but I would like to get the facts from experinced landlords.

[jordan69s]

I am not an investor but work for some since I do Property Management in Duchess County, NY. There are great opportunities around here for long time investments. I say long time since right now there is a burst bubble in the Real Estate market, but that is the best time to buy since lot’s of people are trying to dump these properties. This are is a heaven for investors since we get many families from Westchester County and NYC who cannot afford to live there anymore, but need to commute to their jobs. Let me know if you have any particular questions from my area….

Cheers

[Doggz3]

The scenario you descirbe ($50,000 for the property yielding $1,000/mo in rent) is almost always a duplex, with each apartment accounting for some portion ofthe $1,000. Single family homes in the city that sell in the $50,000 range tend not to rent for $1,000/mo: $500-650 is more like it.

I have been investing in Rochester for 4 years and would be happy to answer any of your specific questions.

[Sgoldie]

I would just like to add that anyone considering being a landlord, especially an out-of-town one I hope would put money in to upgrade these cheap rental homes (new windows, new wiring, new plumbing, new heating, new roofs) for safety's sake and so as not to further run down some neighborhoods.

Many cities are starting to go after those who let their places become decrepit with fines and condemnation. Unless you have decent bathrooms, kitchens, and exterior in addition to the above you are not going to get the kind of tenants who won't cause you problems. Chances are any of these homes under $100,000 will need all of these things.

Also, this is not the kind of area that you see on tv where your house will double it's worth in a year. You will realize generally a 3% increase in price per year on average. It will take the term of your mortgage when the house is paid off for it to become profitable per se. However, up to that time the rent should be sufficient to pay for itself.

[RobertMann]

Buffalo itself has many opportunities. The area downtown close to the Arena will soon be of higher value due to the casino and the various other public projects that will start soon, including the building of a Bass Pro Outlet on the area currently occupied by the AUD. The Waterfront will be soon be beautiful.

[mrsafetyman]

[quote=bayberay;1734521]I have mostly interested in Rochester area. I can see house prices around 50k and rents goes like 1k. Think that I don't understand is why people who can afford 1k rent but don't consider buying house.

Is there something wrong?

Reply: I never understood the rental vs ownership decision myself. Owning is good but I believe the fact that many cannot afford the initial downpayment is a big reason, secondly, NY state taxes are high meaning the annual taxes can eb higher than the primcipal and interst on a home. But there is STAR a tax rebate program for home onwers in nY state. It is better to own than to rent but if you are come and go person than renting is the way. If you want that piece of the pie being seperate form others not upstairs tenants to deal with than ownership is th way to go. If they NY state lowered property taxes than there would be more home ownership.

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