All Forum Posts by: Steve Santacroce

@Susan Roberts The city is very tenant friendly. You'll want to have very tight rental criteria. The area is one of the few that you can still find good cash flow tho!

There's a lot to break down here....

1) $40k purchase price. I don't see how a house that you can buy for 40k unless you've found an amazing deal. Any area that commands 1400 in rent even in rough shape are selling for 100k right now

2) The taxes. You have it at about 1k a year... This is Rochester, NY... not Florida. There is no way the taxes are that low, unless you again are buyin a house on like Ave D. If you are looking at that street, just no. For an ARV of 100k the taxes in the city would prob be around $4 a year. That will have an effect on your NOI.

3) Insurance... Yeah you're not going to get a good policy for under 800 a year. I would say at least 1k, but if you're in a rough area, make sure you get replacement value, cuz mad tenants tend to get a lil pyro-ey.

4) Water.. you have $0. Even with a SFH, you could end up paying water. You can tell your tenant to, but if they decide not to, the city will go after you and not the tenants, so you might as well just roll that into your rents. I would say this is at least $400/yr

My guess is you need to add about $325/mo to your expenses. Again, with more information I could give you a more accurate answer. Feel free to DM me with more details if you'd like!

I would just say be really cautious about renting in that area. I don't know many successful investors who've made it work, and I know many who have failed...

If you're looking for a company that specializes in student housing, rather than a property management company, I would look into RocRooms.

https://rocrooms.com/

Rochester is def getting harder to cash flow in good areas. Deals are a lot harder to find, and most of them are in C and below areas. The numbers are there, but you're going to deal with a lot of headaches. Also since you are out of the area, watch out for locals trying to tell you they have great deals in B areas, because chances are they aren't B, and most likely not even C. 

I haven't really ever used Trulia's crime map, as almost every other street in Rochester can be night and day if you're not in the "good" areas. 

I personally LOVE living in Rochester. The standard of living is super low, you can get a really nice house for under 150k, and as long as you do your due diligence, you should be able to build a nice portfolio of properties here. 

I would really recommend you taking a trip out here. Show up to a few of the local REIA meetings and really drive around the different areas. That's the only way you'll really know if this is a good place to invest your time and money.

And taxes? They will be much higher than that.

City Taxes = 3347.67

County Taxes = 608.08

Total = 3955.75 / 12 = 329.65/mo 

And that's before you get reassessed since it's currently assessed at 80k and sales usually trigger a reassessment... 

Garbage will be ~800/yr if I remember correctly what I'm getting charged by the city.

You'll need snow removal unless you wanna deal with slip and fall lawsuits, so that'll run you 250-350 a year.

If you are getting a mortgage, I would think your closing costs would be closer to 7-8k (at least in ny mortgages)

Repairs will also be higher due to the rougher neighborhood, I would say prob 10-15%.

Insurance will also be higher than that, I would guess 120-150/mo. Again going by what I pay in NY (for decent insurance)

That's in an area that is tough to manage. I would expect double or triple the vacancy you have down...

Your best bet is to come to the local FFREIA meetings. There are quite a few who show up and they are the ones who have been doing it for years!

It was cancelled due to the really really crappy weather :(

Tho a few people said they would prob still show up there, I won't be one of them!