Investing in Decreasing Population Market e.g. Endicott, NY

[Christian Valencia]

Hello BP community! 

First time post and I'm sure not the last. I'm a NYC resident and have been seeking to invest in an affordable market where it makes sense. I came across what I think is a great deal in Endicott, NY. A duplex (asking $65k, putting 20% down and financing the rest). Cash on cash ROI of 25% (mortgage+interest, 10% property mgmt fee, 5% Vacancy, 5% Capital Expenditures, Insurance, Property taxes, Water & Sewer).

Property is in great shape, just needs some elbow grease in the kitchens ($2.5k) and we're good to go. I found the property off market so I am the first to this hopeful gem.

I did some research on the town such as medium income, employment and population growth. All are not the best indicators I would like to see, specially being my first investment property. 

Is this a good investment or should I pass? Any advise & guidance from the BP network would be greatly appreciated.

Thank you - Semper Fi - Chris

[Stephanie Jacobson]

@Ari Hadar a seller concession is generally cash back at closing for something. Often it's closing costs, but can also be credits for repairs or something like that. First-time homebuyers use this technique often to cover their down payment and loan fees. 

The way this works is that the sale will show as $100,000 on public record, for example, but a 6% concession would mean the seller only took home $94,000. The actual property value is what the seller netted ($94k), not the total sale price ($100k). (I mean this gets tricky because technically the bank has financed the full $100k, and have an appraisal to back that amount up... but at the end of the day, the seller accepted the net, not the full amount, so the lower amount is the true market value.) The MLS is where I find info on seller concessions, and when I'm valuing properties I use the net number.

Zillow and Trulia and the public record show the full financed amount, and those numbers could always be up to 6% lower.