All Forum Posts by: Matt Palmisano

@Aaron Montague

Aaron is right. If you can swing it, do a loan. That way you don’t pay the early withdraw penalties.

@Thor Sveinbjoernsson

So much more data needed to make that assumption. First off, unemployment in 2020 is very different than unemployment in 2008. In this case, people were paid to not go to work versus that of 2008.

This, from Jaime Dimon of JP Morgan:

Of the 20% unemployment, 70-80% of the unemployed are home making more money than they did while they were working.

The amount of liquidity and stimulus in the economy is staggering.

My two cents- if we see a second wave of infections towards end of summer and fall, we’ll have a big problem. If not, the Dow goes to 30k and economy soars.

@Michael Lowe

Michael, just starting out is farther than many people ever go so kudos for having a vision.

Let me ask you this...Would you take financial advice from someone who is bankrupt? I didn’t think so. Keep at it.

@Russell Brazil

Russell wins. Just smile at them and keep moving down your path.

I got some advice from a very, very wealthy individual several years ago.  

He said, “Matt, act like you have been here before.”  

That advice has worked for me. Most of us have to start somewhere and the faster you can go from “bro” to “pro” the better. 

Out of state landlording is challenging no matter what.  I live and invest in Rochester.  Some neighborhoods are better than others. In fact, some streets are better than others.  Rochester can be a great area to invest in for cash flow.  I don’t know that you are going to see massive appreciation but cash flow is decent. Tenants can be challenging as most city properties are lower income.  There are pockets of class a neighborhoods but you’re typically 100k a unit there.  Taxes are high in ny so check out county and city for taxes. On a 50k house you’re probably around 3k in taxes. 

Avenue A would be in the “c” category. It a a tough neighborhood for both pm’s and owners. I don’t have anything in that section of the town but the yield return should warrant the level of risk. I also don’t use a pm as I’m local but make sure youre in the loop for repairs. 

@Ade Amoo Rochester can still be a great area to invest. I like the MT Read section for class c. Still some decent people and the returns are better. Class b - I like the Monro Ave area. Still good people and lots of bars in that area. For class a- park ave and east Ave. You’ll pay 70-100k a unit which can kill your cash flow once you factor property taxes and other expenses. I have had luck with class b and c. Best of luck and reach out any time if you’re looking for more info.

@Thaddeus D. Rochester is a very interesting market. Keep this in mind- I call it the 3 block rule. You can have a great property that cash flows, has good tenants and overall a good investment. 3 blocks away, you can lose your shirt. Regarding the property managers, there are a handful of good ones and a lot of handymen looking to grab your rent. Get to the owner. Inquire about home many they have, ask how they do maintenance, fees, hourly rates, how they handle late fees, have your attorney read their msa (master service agreement) and understand the more bells and whistles they have to pay for, the smaller your returns. It’s a business, not a charity and it’s offaly hard to run a business on $75 bucks a month. Good luck. Still a great place to invest.

Hi Eric unfortunately Just Rochester. Believe it or not markets are a bit different.