All Forum Posts by: Mark Updegraff

Outside of the city of Rochester the cost of acquisition goes up and the rents are the same or lower (depending on the suburb). They're often slower markets meaning vacancy can be a little higher as well. Some people buy in these markets, but primarily well established investors that are looking for quality assets and not as focused on cash flow. Yes, the BRRR method will work in these markets, however the cost of entry is typically a lot higher than the city. If you're working with limited capital, you could find yourself priced out of the market. If you've got plenty of capital it is an area worth considering.

Rochester is a pretty unique place, and it isn't as easy as just picking an area for the BRRR method. There will typically be "value add" plays where you'll be doing some work. Common examples are exterior paint, interior paint, kitchens and baths but could also involve a full on gut. We have a lot of deferred stock sprinkled throughout the entire area, even in "nice" areas. Generally speaking the 19th Ward is probably worth considering if you're not already paying a premium for the location. Anywhere in the SE section of the city (if the numbers work) and most recently there has been a resurgence in Merchants. Obviously Browncroft if you could find something there too. Homestead Heights may be worth considering, but be careful!

Hope that helps!!  Happy Spring Y'all!!

That isn’t realistic in Rochester.

Many Rochester areas stay flat in value for decades regardless of capital improvement.  Flipping / short holds only work in very select areas.  5k / month on 600k is terrible CF w our taxes... 

Downtown is the most notable but there are many.  I sent you a PM.  Talk soon, Mark

Why does everyone new gravitate toward wholesaling?  I know the traditional response is "because I don't need any money".  In order to be successful in anything, you need time.  In order to free up your time, you need money.  After years and years of meeting new investors going down this route, I'm yet to know one that succeeded at doing wholesaling out of the gate.  Save up some money and buy an investment property.  This will give you a ton of experience, start to open up your networks, and give you a start to passive income which if built upon can lead to the time you need to really take a go at wholesaling.  

I highly doubt you'll be able to generate that many wholesale leads in Williamsport, there isn't enough population.  Also, the retail market is a lot slower there.  I'm not sure what the average DOM is, but based on my observations I'm thinking it has got to be close to 180.  It also seems like there are not many buyers for more expensive homes either.  So, you would have to be targeting an even smaller subset of the overall market.  Once you get down to that price point, there is a pretty big supply of inventory so you'll be competing with other sellers making your acquisition price even more difficult.  There was a run up in the prices based on the Hydrofracture boom, and I don't think they've fully adjusted, that means the comps you're looking at might be a bit higher than they are currently.  Have you considered doing other markets remotely?  I would be happy to take any Rochester deals you could drum up.  

Cheers,
Mark

4 / 5 bedrooms in popular RIT rental area.  Always rented, 1 full bath and 2 1/2 baths, large garage, brick elevation, split level with walk out.

@Phil G. great point on enlisting an attorney! The increase exposure on E&O is the main hurdle.

@Mike Cumbie wow, that is a lot of local brokers!  

@Paul Rowan If you pay for the additional E&O exposure you will create, a licensed broker will most likely sponsor you and let you collect rent as PM for clients. Do you have units lined up to manage?

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