All Forum Posts by: Joshua Lupo

@Mark Romano @Ryan Vienneau I am fairly conservative with my evaluations and still do find 1.3-1.5% price to rent ratios and not in high crime areas either. I usually take gross rents and back out 25% for repairs, maintenance, prop management and Vacancy. I self manage but my time is worth something and eventually I want to use prop management to make our investing more passive so that’s why I factor that into my 25%. I then back out the Principal, interest and Taxes and STILL am able to find deals that make sense. My personal goal is to make $200  per door after all expenses and have been able to do so thus far but I don’t know if this is a testament for the viability of Albany-Schenectady-Troy as being strong rental market of somehow its a sign of something bad? Biggest barrier I am facing right now is capital and need to find ways to access OPM quicker while offering a favorable return.

@Ryan Vienneau I would agree with the Albany market and see prices as being bloated and cap rates are being compressed. For those looking for turn key, move in ready properties I think it’s very difficult to make sense based on current listings. With the skill set and right mentality, I do think value add opportunities are out there whether it be in Albany or Troy. I feel like Schenectady numbers sometimes seem too good to be true though because I will analyze 10-15 different properties a day and consistently find 1.5+ price to rent ratios,  10 caps and 15+% cash on cash and the places aren’t dumps or at least dont appear to be when I look at photos and drive by. I have a much harder time finding these numbers with Troy and Albany though and so with Schenectady I can’t help but feel like  there is a “catch” that I am missing? 

I don't know if it is just me but I feel like when I analyze properties in Schenectady county I have a much easier time making sense of the numbers than what I see in Albany and Troy? I almost do not even bother with Saratoga county because of how bloated their prices are and yes Albany has a solid renter base but when I am evaluating most properties, based on how they are being listed I am often finding 5-6 CAPS vs Schenectady where consistently in "decent" areas I am finding 9-11 CAPS? Anyone else notice this and can anybody explain why, at least on paper, Schenectady seems highly favorable for investing?

I really like that property taxes are being discussed as those seriously can be deal killers especially in Albany, Schenectady and Troy. If I had the nerve I would absolutely explore outside of NY markets that had far less taxes. Definitely need to factor them into your numbers . I don't think Troy should necessarily be avoided all together and I personally own units in South Troy near Hudson Valley CC where there has been a spike in commercial development. Saratoga county is appealing because of good schools and lower taxes but housing prices are bloated and I think could be hit hard in the next downturn. Places just outside of that area like Waterford, Watervliet, Cohoes and even Green Island are worth exploring as they are somewhat tertiary markets and still have deals that pencil out. I am always intrigued by parts of Schenectady but they consistently have some of the highest property taxes in the area and very much a hit or miss kind of city. 

City of Albany is good but also pricey and can be hard to cash flow. Stable renter base though with great job market and emerging tech community. Troy is only 10 minutes north and is growing quickly and prices are catching up but still room to grow

I joined the BP forums about a year ago to learn more about the world of real estate and to get insight into where people invest, what metrics they use for analyzing deals and also to connect with other investors in my neck of the woods. Over the last year I have learned a TON, met some great people and really immersed myself as much as possible in the world of real estate. After walking through over 30 listings, submitting 12 offers,  getting 2 accepted and going under contract, my wife and I are finally closing on our 1st multi family in Troy, NY. This is a market I have spoken to others on the forum about who also like the current growth happening and we are excited to kick off our investing journey here. We're excited for our first property and aspire to buy several more in the next few years.

In the capital district, to my knowledge there are not many meetups or events for local investors but I do want to net work ,collaborate and potentially partner with other investors especially people who own in Troy. If someone sees this and wants to learn more I would love to connect!

Cheers!

Hi BP! My fiancé and I are in Albany, NY and made an offer to buy a house and have now found out that it has Aluminum Wiring. Property is currently under contract. Would this make you run, or would you go ahead (after getting it checked by an Electrician) ? Thanks!

Hi BP!

My fiancé and I currently have a 3 family in Albany,NY under contract and just recently had the inspection done. Based on the report the property has some minor defects and I would say 2/3 of what we saw we liked and felt comfortable with. A big question mark for us however is the electrical system. The report reads as follows:

"It was observed that solid-strand aluminum branch circuit wiring existed in electrical panel #1 and #2. This type of aluminum wiring is a potential for arcing and sparks. Expansion and contraction can cause overheating at connections between the wire and devices such as switches and outlets or at splices. It is recommended that the aluminum branch wiring be replaced with modern copper wire."

Another observation was "It was observed in several locations throughout the interior that 2 prong non grounded and obsolete outlets are present. These receptacles were also missing electrical covers. The non grounded 2 prong outlets should be upgraded to include modern and safer 3 prong receptacles which provide a pathway for the current to travel harmlessly to the ground. It is recommended that a licensed electrician be contacted for necessary repairs."

House was built in the 1930's and is a 3 unit building in Albany, NY. We have spoken with dozens of other agents and individuals in the field and most have commented that it is very rare to find houses with aluminum as most 1930 or after have copper with some exceptions between 1970-1980.

We are going to get an electrician to look at and explain more about the aluminum wiring but I am wondering if there is anyone who has encountered something similar and what they did about it?

Thanks!  

@Josh Dillingham Seller accepted our offer but we still have 5-6k in liquid cash and we save 1700 a month in general. We have been keeping it parked on the sideline however beacause were getting married in August and want to ideally walk away from the wedding without any debt and perhaps profit a few K. We also have a small emergency fund 

@Chris Connery In terms of the 6% seller concessions, this is the max an FHA loan will allow and then for some conventional loan products 3% is the max. We have 8-10k available for a down payment but between closing costs and taxes we are unable to pay for all at this time thus we ask for concessions. One example we have come across was a 209k 3 unit property. We offered 228k with 6% seller concessions which brought the offer down to 215k. Down payment would have been about 8k, annual taxes in Albany, NY for this property are 6200 (with star credit) and then closing costs were approximately 3% (6210) of the loan amount so in this case all cost would have come to 20k which we do not have at this time.