UTICA, NY look into it, or look away???

[Fraidy Deutsch]

Hi guys, i am an investor in the Westchester, NY area where I have been quite successful. I was just presented a deal in UTICA, NY a multi family property with excellent cash flow and 7.5% cap rate. Those i ask for advice from told me not to invest in upstate Ny. The numbers just add up and make sense and i can't say no without a valid reason. Can someone (with experience) please enlighten me on the real estate market in Utica, Ny?? * is the value appreciating or depreciating?? * is there substantial population?? * is there any particular reason or attraction someone would live in Utica I.E. great college, good school, or job opportunity?? * what age group are Renters?? Any and all advice is welcome and appreciated. Thanks in Advance

[Randy Iannone]

Although I do not currently reside in the area I did live there for 30 years and still visit family approximately 8 times a year. In the past I had investment properties in the area and am currently seeking to re-enter the market. Utica is a market that many might shy away from but it would depend on your goals. If you are looking for any sort of appreciation you are looking in the wrong place. That said, because they do not participate in the huge market up swings, they enjoy stable home values in the economic downturns. I have found the cash flow to be above-average. I believe this to be mostly due to the lower than average home prices and the fact that the somewhat depressed area economy keeps some folks out of home ownership and into the rental market. The population has been in decline but at a very slow rate. Some of the population losses have been stabilized by influxes of refugees. For me specifically, I will be focusing on the outskirts of Utica (Whitesboro, New Hartford, etc...) where the schools are much more desirable. The area has some potential for growth due to the new Nano Tech facilities but it remains to be seen if that will all come to fruition.