Question on analysis

[Jasper Son]

Hi, 

My name is Jasper Son and I live in brooklyn, new york. I am looking to invest in Rochester, NY and I would love some feedback on my current progress. 

Using Listsource I determined that the zip code area 14609, 14624, and 14612 had the most absentee owners within the past six months. To start out, I am analyzing these areas for property analysis. 

One of the properties that came up recently on Redfin was 740 Grand Ave, Rochester NY 14609. The place is a SFR 3 bed 1.5 bath, 1312 sqft, built in 1920. Using rentometer, I took the average rent, 1435, for my analysis. Using the BP rental calculator, I have determined that I had to offer 92,000 on a house that was listed for 135,000 for the property to cash flow $150 with a CoC return of 8.84%.

I assumed 9% for repair & CapEx, 5% Vacancy, 10% Property Management fees.

I let the tenants take care of the electric, gas, and lawn & snow care. Assumed 100$/month for Water & Sewer and 50 for garbage.

Does that sound right? 

Additional question: What bills are the landlords usually responsible especially for SFR in Rochester?

Would love the feedback. Thank you! 

 

[Maria Guevara]

@Jasper Son I invest in Rochester. It’s very rare to offer well below asking in a hot market like this where the homes go very quick and usually well over asking. The areas I pick are close to the University. Most of my tenants are grad students or young professionals. They pay on time, even a week in advance. Although N Winton, which is the area you picked, although not bad, would not be my first choice. Try looking in the 19th Ward, South Wedge, PLEX (but not all areas are good) .