All Forum Posts by: Darius Ogloza

I meant to write "non-owner occupied" financing, which tends to be more expensive than the rates available to owner occupiers.    Sorry about any confusion.     

The questions I have:

How solid is this neighborhood? (i.e. are the rents real or wishful thinking) What cross-checks have you done for this neighborhood's rents? 

Leases? Month to month tenants? 

Does NOI calculation seem right for the area (i.e. is $7,500 for taxes + insurance realistic? Who pays for utilities?)

Repair costs/after repair value prepared by you or by seller? (i.e. real or BS?)

Is the proposed non-owner financing achievable in this area?

Do you have anything better to do with $25K at present or within the relatively near future?

Out-of-state investor interested in hearing what the local folks think will be the effect of development on the North Strip - Resorts World  and the Drew come most immediately to mind - on nearby high rise condos (Allure, Sky, Turnberry) over the next 2-3 years.    Anyone investing in high-rise condos/those buildings?  

For starting out, I would strongly consider looking first in the triangle of streets between Culver and Merchants in 14609 (Grand, Garson, etc.).  There may be deals one or two blocks west of Culver also (Beechwood neighborhood), though I have known folks who lost money there.  I would also look in the areas between Humboldt Street and Blossom (Marion, e.g.) and along East Main (starting in the 1900s until the street ends at Winton).  

If you have a bigger budget, the streets just south of Monroe Avenue (Pearl, e.g.,) have a lot of duplexes and many in need of repair.  The inner southwedge (Comfort Street and vicinity) also had some deals when I last looked.

I found that duplexes, where available, make by far the best investments in Roc.  

As you can tell I know the east side much better than the west side.  For areas in Maplewood, Charlotte and 19th Ward I would seek out someone who knows the terrain better than I do. 

Good luck to you, Alex. Happy to answer any questions you may have.  

I have 15 years experience in that market.  Look to 14607, 14620, 14610 and 14609 (east of Culver Road) for good opportunities ranging from decent working class to upper income areas.  The North Winton corridor (14609/14610) has presented some great opportunities in the past.  Lately, it has been bought up as folks have caught on to the value there.  The southwedge (14620) is in similar shape.  I bought a duplex there in 2006 (Oakland Street) for $75K and sold for $150K in 2014 after my manager became an opioid crisis statistic.   The property threw off $14,400 in cash annually during that time (below market/long term renters).  I seriously doubt you can find comparable deals in that neighborhood now.  Your maintenance bill will be higher than you think given the brutal winters there (e,g, a lot of roofs will need replacing).  The Town of Brighton also presents some opportunities as it houses are great school district and some deals are to be found.  The 19th Ward (14619) is very hit or miss.  South of Brooks and west of Thurston are the better areas.  You really have to know what you are doing there.  14621 is not for the faint of heart.  

The quoted operating expenses seem awfully low.  $11,200 in annual property taxes on a $2.3 million commercial property?  Where do you live?  

Hi Patrick.

I know the Rochester market quite well having invested in real estate there since 2004.  What are you bringing to the table?  

Thanks, Dan.  Over the past year or so, I have seen a couple of smaller commercial buildings come on the market that seem to be at tempting price points - 415 N Michigan (listed for $199,000) is a current example.   My mother in law lives near Toledo and my wife and I visit from time to time.  From my limited vantage point, gentrification downtown seems to be progressing - I just wonder which way the momentum is swinging these days.  Do you expect more improvement or do you think the wave of improvement is stalling/petering out?   

I do not live in the area but between 2004 and 2014 I owned 6 duplexes on the east side of the city, Southwedge, Park Ave, North Winton Village. I still own a SFH in Pittsford that I rent out. Happy to try to answer any questions you may have based on my experience. Good luck!

Daniel/Engelo: what do you guys think about commercial opportunities in the downtown/Henville area?