Looking for advice on my target markets!

General Real Estate Investing
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Looking for advice on my target markets!

Alex Fox
Nassau County, NY · Member since 2021 · 8 posts · 6 votes

Hi BP,

I'm a rookie from the UK but living in Nassau County, Long Island NY. I'm currently working in commercial and HOA property management and analyzing potential markets in which to "buy and hold" a SFH or small multi. I want to self manage, so the markets I've looked at are all within a 3 hour drive from home. I would love some feedback from anyone with experience investing in any of these 3 markets and/or their surrounding areas:

Kingston NY

Small market so I assume deals will be very tough to find. From scouring the MLS it seems like potential for great deals is there. Rents are high, taxes relatively low and I could see some appreciation too.

Albany NY

Larger market, potential for rent by room for students. Taxes are high, no appreciation but cash flow seems more than possible. Plenty of duplex's for ~$200k.

LeHigh Valley PA

Largest Market, low taxes but high closing costs, a much more landlord friendly state than NY. Potential for student rental in Bethlehem. Cash flow is tight but possible and no appreciation expected.

I believe that successful investment is possible in any of these 3. I'm looking for feedback or pointers from anyone that has experience investing in these markets.

Thanks in advance!

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Akshay Nihalaney
Investor · NY · Member since 2020 · 36 posts · 41 votes
4y

@Alex Fox

I started investing in Albany last year. You can make a decent cash flow especially if you're renting to students (or travel nurses due to proximity to medical centers). I've seen market price & rent appreciation, at least over the last year (pretty much everything has gone up though). 

Depending on your goals, you can always look for forced appreciation and there is a lot of opportunity for that in Albany as there are lot of houses that are old and could use upgrades.

Taxes are high, and laws are very tenant-friendly; so must factor those in when you run your numbers. Also, there are lot of older construction and deferred maintenance, so that needs to be factored in as well. 

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  • Akshay Nihalaney
    Investor · NY · Member since 2020 · 36 posts · 41 votes
    4y

    @Alex Fox

    I started investing in Albany last year. You can make a decent cash flow especially if you're renting to students (or travel nurses due to proximity to medical centers). I've seen market price & rent appreciation, at least over the last year (pretty much everything has gone up though). 

    Depending on your goals, you can always look for forced appreciation and there is a lot of opportunity for that in Albany as there are lot of houses that are old and could use upgrades.

    Taxes are high, and laws are very tenant-friendly; so must factor those in when you run your numbers. Also, there are lot of older construction and deferred maintenance, so that needs to be factored in as well. 

    2Reply
  • Kyle Gendron
    Real Estate Agent · Albany, NY · Member since 2016 · 34 posts · 8 votes
    4y

    Hey Alex I can't speak much about the other markets, but I can for Albany, I guess it depends on what you think no appreciation looks like but appreciation has been stronger than ever in these last few years, mainly do to the low inventory and the strong influx of investors and residence from NYC sending most of the quality properties into multiple offers situations in the Capital Region not only Albany.... which I don't see stopping anytime soon.
    Taxes are definitely high but so are rents which have also sky rocketed. To Akshays Point a strong tenant-base of student rentals and medical staffing around AMC Albany Medical Center can turn some quality cashflow. The large state-employee and political working force cannot be forgotten either. No matter what strategy you are looking for there is a place for it in Albany. Air BnBs student rentals, Low income, Turnkey and with all this push from NYC it only seems to be going in one direction. Time will tell.

    If you'd like I can send you some data, broad or specific, from the MLS for your number crunching.

    2Reply
  • Alex Fox
    OP
    Nassau County, NY · Member since 2021 · 8 posts · 6 votes
    4y

    @Akshay Nihalaney

    Thank you for your response, a reply from you in another thread regarding investing in Albany was actually partly what started me looking in to the market. When you're renting to students, are you renting by the room or to groups? And for travel nurses, are you using AirBnb, or do they tend to stay for a number of months?

    @Kyle Gendron

    Thanks Kyle, I really appreciate your advice. I will be sure to check the area around AMC. I welcome any data you can provide, especially if you have anything on rental comps for specific areas of the city.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Alex Fox

    You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

    https://www.biggerpockets.com/...


    Worse-case, use the info in them to better understand other markets.

    [email protected]248-209-6824
    Logical Property Management4.9451 Reviews
    WebsiteView Page
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  • Akshay Nihalaney
    Investor · NY · Member since 2020 · 36 posts · 41 votes
    4y

    @Alex Fox

    Renting to group of students. Travel nurses usually rent 90 days at a time. I use furnishedfinder. I haven't tried AirBnB for this. 

    1Reply
  • Andre Crabb
    Investor · Tampa, FL · Member since 2017 · 205 posts · 92 votes
    4y
    Quote from @Alex Fox:

    Hi BP,

    I'm a rookie from...

    I believe that successful investment is possible in any of these 3. I'm looking for feedback or pointers from anyone that has experience investing in these markets.

    Thanks in advance!


    Hey Alex,

    Happy to help you analyze and compare those cities! I enjoy helping OOS investors. I'll shoot you a DM to see how I can best assist you.

    Cheers

    0Reply
  • Randy Gutierrez
    Investor · NY · Member since 2019 · 171 posts · 80 votes
    4y

    I live in Nassau County and have a few units in the Lehigh Valley, it is a highly competitive area, plenty room for cashflow and appreciation if you shop right. What makes you think closing costs are high?

    1Reply
  • Alex Fox
    OP
    Nassau County, NY · Member since 2021 · 8 posts · 6 votes
    4y

    @Randy Gutierrez I have read online that closing costs in PA are typically ~6%, would be glad to hear I'm wrong about that! I've sent you a private message

    0Reply
  • Suzanne PlayerPro Member
    Attorney · New York City / Long Island, NY · Member since 2020 · 597 posts · 248 votes
    4y

    @Kyle Gendron Great point about Albany being the capital - legislators come from around the state with their aids who often need an inexpensive place to stay.  Perhaps all state capitals (& D.C.) have a need for short term rental housing for individuals by the week or at certain times of year.  

    516-503-7959
    1Reply
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