All Forum Posts by: Katherine Hong

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I made a goal to purchase something this year and while I thought we were 100% sold on Albany that assuredness is starting to wain with each trip up to look at properties. I am only willing/can afford to be so much out of pocket so the down payment/renovation ratio needs to make sense and the rents need to be able to support the usual expenses + PM + lawn/snow removal since we don't live nearby to self manage/maintain. These are still things I need to take into account if we invest in Wilmington or anywhere else. Maybe you're right and I'm generalizing but the properties I have seen support my feelings as an out of town investor. If I had the funds or the time for a significant renovation then I'd probably feel different. I came back from our last trip feeling deflated and motivated to look elsewhere. Wilmington is closer to where I live by over an hour and the taxes at first glance are a lot lower. Both of these things are very intriguing and so I will continue to follow the Wilmington, DE forums. 

@James Masotti I love the location. Wilmington is so close to Philly, Baltimore, DC, and NYC. The property taxes are also much lower in Delaware than in the NY markets my husband and I have been focusing on. We have been taking the steps toward finding a small multifamily in the Albany, NY area to buy and hold but the property taxes are so high in some of the counties that the cash flow is minimal. The average rent up there isn't high enough to push through to meet our cash on cash criteria (10%) We've already increased our budget and while the quality has risen they are all still in need of either a lot of renovation or the current market rents are not able to withstand at the asking price (running the numbers we would need those prices down by an insulting amount and none have really peaked our interest enough to even make any offers yet) There are currently a number of large apartment complexes being built in the area and local renters have said that folks are starting to over renovate in hopes of making that NYC rent rate which I don't think is sustainable for the area. Cash flow would be key though because the appreciation is very slow. I am starting to feel that the market there is better suited for someone looking to stay in the area for a long time and house hack (which is not us) or for someone with deeper pockets who can handle a very large scale renovation on a foreclosure or cheap gut (which unfortunately is also not us at this time) We were looking in the capital region due to family being in the area so at least we can make each trip a dual purpose visit (they would not be helping to maintain or manage the property, we would bring on property management for that) but honestly, the drive up there is longer than the drive to Wilmington and that's very enticing. The quality of homes in our price range are also a lot nicer or newer in Wilmington (according to what we've seen on Zillow) than the ones in our price range in the Albany area which are all at least 110 years old and need a varying scale of renovations. 

@Chris Greenawalt that makes sense. Making deals with friends is tricky. The line can get really fuzzy really fast between business and friendship.

The forums I've read about Wilmington have all been written over the course of the last few years and then fizzle out so I can't figure out which neighborhoods have become better investment areas and which to stay away from. I am hoping to get down there soon to check out the city for myself. Any insight from you guys would be greatly appreciated. 

@Chris Greenawalt What ended up happening? Did you strike a deal with your buddy or did you walk away and are looking for something else?

I'm considering the Wilmington market for a buy&hold but still very much in the research stage and I'm very curious what you ended up doing. 

@Ryan Vienneau Thank you so much for telling me to check out Veno. The before/after photos are incredible. You guys did a beautiful job. It's crazy how much new flooring and fresh paint can transform a place. Bravo. The numbers and whole backstory of that property was also very helpful. I'm positive my husband and I can do a lot of the work ourselves and I'm happy to read that you did the same and are finding success. We will keep you in mind when we're looking for a PM.

@Michael Gansberg Thanks for the tip. Sounds easy enough (in theory of course, who knows when dealing with local government) My husband and I also live in NYC. We should meet up for a drink or coffee sometime, would love to learn more about you and you're REI journey.

Thanks again for both of your insight. Wishing you all the luck and great deals in the future. 

K

@Ryan Vienneau thank you for posting your rents. Was curious if those are around the same in 2019. I am seeing the estimated rents in MLS listings and they all seem low. When we punch through our numbers on some of them the cash-flow is so low that it doesn't make any sense to pursue particular properties. Your comment gives me hope since we plan on renovating every unit of whatever property we end up with.

@Michael Gansberg can you talk further about this vacancy tactic? I haven't read anything like that before and we are actively looking to buy and hold in Watervliet or Cohoes this year. I am excited for units that are currently vacant so I can get into them as soon as possible to make updates.... perhaps shouldn't be the case?

Hey Jason!
I'm currently looking for mostly all of those same people. You should definitely be able to at least find yourself some solid realtor options via bigger pockets. I've been pre-approved for a bank loan but haven't thought about someone with experience working with investors for deals. I assumed that shopping around for the best interest rate would be good enough. I guess I should ask around some more just in case. Also, good idea about the CPA. I know my personal tax accountant isn't knowledgeable enough for property investment write-offs. April 15th will be here sooner than we all think. Good luck on your Albany adventures!

To everyone else on this post - Hi! I would also love some of your recommendations for these folks. Thank you so much in advance

Hey Shannon, I'd love to learn more about your brothers tri-plex. I'm sorry he's having such a hard time with the current tenants. I hope they get their act together soon or they leave him in peace. 

My husband and I are looking to buy and hold in the Cap Region. There's very little to no appreciation but that's ok. I'll hold onto the right property until I'm old and grey as long as it's cash-flowing enough. I'm curious if any current property owners are having trouble with the new laws yet and if eviction has been an ongoing issue for anyone up there. I feel like if you/your PM screens tenants enough that hopefully evictions are rare but reading articles about the new laws passed I am proceeding with a lot more caution than before.

Hi Basit!
I'm interested in the networking event for living in NYC and investing in Upstate (Albany in particular). I can't think of any advantage or differences in investing between men and women but I would love to meet other women who are investing in real estate and learn from their experiences if you do end up hosting this event. 
Thanks for taking the NYC initiative!