Choosing a Market- Philadelphia, PA v Rochester, NY

[Casey McMahon]

I am finally in the place where I am ready to start investing in real estate! I have been analyzing deals for both Philadelphia, PA (where I live) and Rochester, NY (where my boyfriend lived pre-covid, and owns a house). I was wondering if anyone had any insights, pro, cons, etc. about either market that may help determine which market I pursue. 

More specifically: I am looking to start investing in single-family or small multi-family rentals as a way to build a passive income.  I do not yet own any property and this investment property will be my first purchase. 

Thank you for any and all thoughts and suggestions!

[Mike Chevalier]

Hi Casey, I'm an investor here in Rochester. Some of the considerations, or things that came to mind would be:

Property Management - you would need a PM if you were to purchase in Rochester, this would be an additional expense. You could self-manage in Phillie, but would need to ask yourself if that aligns with your goals/vision.

Tenant-Landlord Laws - NY is a very tenant friendly state, due in part to laws meant for NYC being applied state-wide. Evictions, etc can take a very long time and be expensive. I'm not familiar with these laws for PA, so can't comment.

Market/Neighborhoods - the market is hot in Rochester right now, especially for desirable neighborhoods. You might be able to get a "deal" on paper, but if it's in the wrong neighborhood it could go the other way pretty quickly. This seems to be the case anywhere, but something to be aware of - make sure you know what kind of tenants are attracted to the area you buy in.

Good luck with your first purchase! Let me know if you have any questions on Rochester, I might be able to help.