Buy and Hold or Flip for First Deal?

[Desiny Smith]

Hi Everyone, So I have been stacking my brain for the past few months trying to decide whether to purchase a multi family property as my first deal or to do a fix and flip? I know that it all comes down to personal preference and long-term goals, but I was hoping I could get some advice from other members? I live in upstate NY in Saratoga Springs and I don't know if I can bring myself to purchase a home in NY with the property taxes as high as they are–even with an abatement or an exemption! So my question is what was your first deal and how did you finance it? Would you do it differently if you could? Tags : Albany, NY ; Capital District ; Glens Falls, NY ; Queensbury, NY ; Upstate N.Y. ; Buy and Hold ; House Hacking ; Fix and Flip ; Action Investors ; Foreclosures ; REO ; Wholesale

[Matthew Mason]

Hello All!  I live in Glens Falls and work in Saratoga. Real Estate is in Saratoga is currently untouchable for an average investor or someone starting out. You will be paying well around 150 (on the low end) per Sq foot for a building that likely has some differed maintenance. A 2/3/4 unit in good shape will hit the market for anywhere from 300K - 750K.   The numbers simply do not work. Yes rents are higher, maybe 1150 for a decent 900 sq ft apt. but does that justify the 140K you will be paying for the unit? It doesn't in my books.   Saratoga is a beautiful area but not the best spot to be buying multifamily for the average/beginning investor.  In comparison, 15 miles to the north in Glens Falls, nice multifamily buildings are selling like crazy for somewhat reasonable prices. You can find a somewhat decent multi for around 60Kper unit maybe less if your willing to swing a hammer\ and rents are between 700-900 depending on location in the city and condition. The numbers work pretty well. Some other surrounding areas such as Schuylerville, Mechanicville, and even Ballston spa will yield much better numbers than looking to buy a 275K Duplex in Saratoga.   Happy to discuss this further if anyone has any input or suggestions for investing here in upstate NY!!!