Upstate NY real estate questions

[Philip Tretola]

I am have finally decided to take the first steps in real estate investing and am looking for some advice / tips in terms of areas to focus on please (or anything else a seasoned investor may offer). I am based in northern NJ, but primarily looking at areas in upstate and western NY (specifically, Buffalo, Ithaca, Albany and Rochester). Specifically, I am looking to invest in 2 - 4 unit homes, in the less than 400k price range. I am mainly looking for cash flow, appreciation would also be great, but not the main focus.

So my questions are:

1) Would anyone who has had success in any of the NY state markets have time to chat to discuss their experiences in their respective market?
2) What kind of cap-rates/COC returns have experienced/successful investors in these markets expereiced?
3) Are there any contacts in these markets who are knoledgeable and I should reach out?

Thank you so much to anyone gracious enough to offer their time and help!

[Shannon Sadik]

I currently have 2 duplexes in Rochester and am actively looking to purchase more. Don't bank on appreciation at all in this neck of the woods. The great thing about Rochester is that the market is stable so it won't crash on you but it also won't really appreciate. I've seen quite a few investors purchase a home at what they thought was a "deal", and then 5 years later not be able to sell it for what they have into it. 

The cap rates and cash flow vary depending on the area. I'm new to this so pretty much ran the numbers on every home that came up for sale on the MLS to learn. I personally shoot for those in A and B neighborhoods with a 9+% cap rate. If it's a really nice house, ready to go, and in an easily rentable neighborhood, I will settle for less as long as I am making at least $150/door in cash flow. My first two did not have as high of cap rates, but I plan to renovate and raise the rents as each tenant moves out. I also hunt for more off market as most on the market are not great deals. If you aim for less nice neighborhoods, your cap rate and C of C will be much higher but may not be worth the headache. Hope that helps!