Duplex rental in Rochester

[Michael S.]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Rochester.

Purchase price: $100,000
Cash invested: $25,000

Cash yield focus. 9% cap rate ( with 5% repair and 1 month vacancy reserves) / 20% IRR (1% growth and 0 appreciation)

Looking to accumulate more multi family units in Rochester

What made you interested in investing in this type of deal?

Base case: property tax cap / limited new city supply should support current rent with inflation adjusted rent growth
Upside: U of Rochester and RIT could lead to area job growth; high mix of millennials