All Forum Posts by: Franco Li

Nick Adams I work with some folks who look into buying NYC and properties in the boroughs and think you should definitely tread very carefully. Most folks who I've analyzed and worked on the investments with are foreign buyers who do all cash ($1-1.5M!) because frankly they need to hold down their money somewhere. In saying that, NYC's price/rent is so high that it is really hard to work the math. If you need leverage, you'll probably just be betting on property appreciation. I do think there are some areas that can work but a bit further like East New York, Long Island, east of Queens, even Staten Island. Good luck!

Jarrell Holmes Hey this looks like an excellent opportunity but definitely ask about taxes, especially since he owes some! I assume you won't need to leverage but what is the property condition like? Reminder that even if these folks have a historical tenure at the location, you may need to do some renovations to keep it functional - which means you may need to move them out anyway! Tons of things to consider but best of luck and make sure you check the list!

Julien Walthour I own several rentals in the Rochester area and thing the place is great, but maybe 1-2 years ago. The market is really quick so unless you're flush with cash (not a good idea) or live near there to make quick decisions, please do as much research as possible! Good luck.

Why are you deciding to put 50% down? Keep in mind that I don't know the area, but you can theoretically buy two houses at 25% down at a similar price - assuming the rental rates make sense...

I come from the investment banking background and I've met many individuals who are considered high-to-ultra net worth, and many of them have the capability to buy multiple houses in NYC but few do. Their reasoning is that it is less of a headache - i.e. insurance, mortgage, etc. - which is very accurate. Keep in mind these folks pay $10K+ in rent probably. Now as a landlord of several properties, $1300-1500 is what I've seen typically in smaller cities that I own 3-4 BDRs. Rent also correlates with how well the properties are maintained though... I've also seen areas that pay $100/month, and those places are worse than homeless shelters!

I have several investments in that area. One of them is 3BDR that we go for $1500 and another 3BDR for $1350. I know some places are run down in that area so you may not get the ideal rate, but some of these properties are cash flowing and the ROI makes sense.

@Ralphy Rosado @Sourabh Bora

@Abraham Rahmanizadeh , @Tom Chen

Hi Guys! I already invest in the Rochester area and own several cash flowing properties. I can say the market is incredibly hot, and the price/rent ratios are pretty low - which is good - versus the country. If you look for decent areas like near colleges (UoR, Brockport), you can see below that even really run down places (may need to renovate a bit) can do 90%+ 5-Year ROI.

Also, I am not a broker so perhaps you need to ask some folks in more detail. Good luck guys!

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