I talk with a lot of out-of-state property owners that invest/hold in Rochester. I'll tell you right now that the biggest thing I see is investors who bought between 05-08 who want to sell - in the "risky" areas - but owe double what it's worth. An example is an owner who lives in CA and bought a single for $54K in '06. She still owes $45K on her mortgage. She needs to spend $6-8K to renovate to obtain a C of O. That doesn't include the $6-8K she'll need in 5 years when her roof goes. I'm closing on a single 3 blocks away in better shape albeit 1 less bedroom for $14K.
My point is that just because you can find cheap properties in the city relative to other areas, don't assume it's going to be a good deal. The CA owner offered to pay $20K in order to sell, but even at $25K it wasn't worth it.
