AirBnb, Student Housing, Long-Term Rentals in Rochester NY??

[Mary Bailey]

Hi everyone,

Is Rochester a city where I should consider an AirBnb? Does anyone have experience with one around here? What sort of returns do you see each month? What neighborhoods/towns in Rochester get the best returns? 

I've been looking at different properties in the area, some in the city and some in neighboring suburbs. I've considered Irondequoit, based on its proximity to SeaBreeze and other summer attractions near the lake. There are a lot of properties being remodeled in that area that I've noticed, yet they're still selling for about $115k. Is it wrong to assume that an AirBnb in that area could generate positive cash flow over the summer? Based on my calculations, the potential for profit could really go up if I were to, say, rent a 4-bedroom property to students for 10 months, and then rent it on AirBnb for the summer. I would love to hear about anyone's experience doing this!!! 

For other student housing options, I'm looking at East Rochester/Fairport for Naz/Fisher students (I attended Fisher so I know what those students are looking for and how to market to them), the 19th Ward for U of R students , and Henrietta for RIT. 

I've also considered long-term rental properties in the Farmington/Victor area (among others), where taxes and prices are lower but the school district is pretty good. 

Like most other new investors, I don't yet have the means to finance a property, but what I DO have is time, knowledge, and drive. I grew up in the area and know Rochester like the back of my hand. I'm trying to learn as much as I can so that when I finally do secure financing, I'll be 110% ready to take action. I'll most likely end up with an owner-occupied FHA loan for that first property and build up from there.

I know I'm all over the place. But I'm looking forward to hearing from those with more experience! 

[Paul Bowers]

One word of caution is turnaround time.  You have to figure on losing some time and money when the students move out to repaint/update the apartment before you could rent it to aiBnB customers.  If I'm not mistaken, my next door neighbors daughter was forced to just rent her apartment for a full 12 months even if she planned on going home for the summer.  That may work better than the airBnB and they just move back in come fall so no turnover repairs.