All Forum Posts by: Dave Savage

This isn't the best area and there are plenty of deals better than this.   I agree with Mark that you are probably closer to $16-18k gross.   If it was in the 19th ward or Maplewood it would be a fair deal.   

@Jeff Haak what area of the city are you looking to do this?   Finish costs could vary widely depending on location

@Jonathan Wheeler welcome to BP.   Feel free to post any questions you might have about properties on here with the words Rochester, NY in the post and we will try to help you out.   

Definitely check out the Meetup as @Rebecca Lebowitz  has been doing a great job with those and check out the FFREIA site for the local investor's club as well.   

@Mark W. You are right.  I believe it is nine months of vacancy before they'll pull the multifamily designation though... @Mark Updegraff is that right? 

Ok Let's run the numbers for fun if it is a total gut:

Trash Out - $1500 might be light

Roof - $8000

Paint studs and floors for smell - $2000

Drywall - $2000

Paint Inside - $1500

Paint Outside - $2000

Kitchen #1 and #2 - $4500 

Bath #1 and #2 - $4500

Flooring throughout - $3500

Electric - $3000

Plumbing - $1500

Windows - $3000

Misc (doors, trim, etc) - $4000

So $41k rehab to turn this into a great $29,900 double bring in $1100-1200/mo.   

I agree with @Michael Wagner more rural towns can work from a numbers perspective but the Property Management is a problem.  I had a decent deal on a property in Hamlin but no one to PM it for me, and my business plan doesn't have me doing that work so I passed.   

If you are willing to put in some sweat equity places like Newark and Lyons might work out.   I know @Tom Sylvester our local BP podcast star (:)!) is a big investor in more rural NY towns and has found a niche that works for him.   

@Michael Wagner I'm definitely in

@Larry Turowski I think this is an example of someone trying to work in an area that really isn't that safe during the day and even less so in the dark. Anything North of Shelter St is really sketchy in my book as I have driven all of those streets and it is a good example of the issues that can be faced with chasing the max ROI in really rough areas - most of the time you don't get shot, but I have seen and heard of similarly harrowing stories in that area.

Plenty of C+ areas to invest in in Rochester with minimal capital needed where the returns aren't quite as good(but still better than 80% of the US), but the danger level is much lower.  

@Blake Anderson check out the many threads about using listsource.  You can even do a map search to create a bounded area for the areas you would be interested in investing in, and then get a list of all the multi-families in that area.   Then find a direct mail company like yellowletters.com and use one of their form postcards and mail it out to the owner's address (not property address).  $400 should get you a number of solid leads in the area of interest that are off-market.  

welcome @Joseph Kraft you will find a lot of great info here.  Feel free to ask questions and include Rochester, NY in the message and we will be had to help answer your questions. 

Also look for info on the local meetup and also check out FFREIA for some great networking and learning.