New couple to invest in buy-hold cash buy SFRs in Rochester, NY

[Anne Cantwell]

Hello all!

I'm writing to introduce myself. My husband and I live in California, but are looking to invest in our first property within the next year in the Rochester area (specifically a nice suburb like Pittsburg or Henrietta, as my husband attended RIT). We plan to buy and hold. I am trying to soak up as much knowledge as possible through reading and listening to rental income podcasts. If you have any tips, Id like to say thank you in advance so much for any advice you'd be willing to share.

I am a teacher who has saved 45,000 in my first couple years of teaching. We are looking to buy a SFR in cash when I've saved about 100k. I'm somewhat risk averse (my philosophy is kind of slow and steady saving, and seize the best cash flow opportunity with a cash purchase). Since we are living with my parents, we have an amazing opportunity to save for a few years. After we've saved for a couple SFRs, we may leverage, but we're less comfortable with anything too risky.

 We are just a low wage family with a new baby and plenty of student debt, but I'm eager to approach real estate in the best way to provide us with more financial freedom and opportunity. 

Looking forward to hearing from some investors on here!

Annie

[Thomas S.]

Stay away from SFHs if you are conservative. They are extremely difficult to achieve positive cash flow long term. With only one tennat supporting your property the risk is much too high. Being conservative you must understand that buying with cash will seriously reduce your return on investment. Cash buying is not conservative, it is ultra conservative and produces very low returns. You would probably be better off investing in REITs or a income fund for security and higher returnes. If you are speculating on appreciation this may be the wrong time to get into the market, you will need cash flow to survive.

Your best investment oportunity will come from multi unit properties with the use of leverage to increase returns. Hoarding cash in real estate is not smart investing.