Newbie - questions about Rochester
Hi,
My name is Abe Butel and I'm new to RE investing and this site.
My cousin has a few 2fam properties in Rochester and looking to add more and I'm considering partnering with him. Based on some reading I've done on the site (very informative btw), I'd say that our main goal would be something like the BRRR method. Neither one of us lives in Rochester but he's seriously considering moving there this summer. His properties are currently in 14621 and the ones he's looking into are spread out between 14621, 14609 and 14605.
My questions are as follows:
1)Can I get recommendations for a good CPA? Someone who can also provide guidance as needed.
2)I've read and heard about people's bad/terrible experiences with management companies. Are there any good and trustworthy ones to be found? If my cousin ends up moving there this won't be relevant but I'd like to explore all options.
3)Is it easy/hard to refinance properties in the areas I listed?
Thank you in advance.
Most Popular Reply
It might not be difficult to refinance the properties themselves but to acquire enough equity to be able to cash out in a meaningful way may be. An excellent house in some of the Rochester neighborhoods will appraise very little even with significant work. It is indeed harder to BRRRR in some of these neighborhoods as the repairs or upgrades to the properties fail to increase the appraised value simply due to the area. You should be looking at comp rates in the area and perhaps expand the time in which they've sold to maybe a year or more.
You're looking to see what the top of the market is and if you reach the top of the market with your repairs, will you be able to pull enough money back out to make your purchase make sense.