Hey guys. I live about 45 miles from Albany,NY. A look on REaltor.com reveals many 2-3 unit buildings going for $20,000 to $50,000. The advertised rents range from $1,000 to $1500 per month for each building. a lot of these are the “brownstone” type properties. Square with brick exterior and flat rubber roofs. The areas are likely really bad but with a mortgage of $140 to $300 per month, it seems almost worth the hassle. I’d plan on having a property management company run things. I put a call into an Albany area Realtor who is a buyer agent for multi-fams but have not heard from him yet. What do you guys think based on what I have so far?
They look pretty shabby. They’ll definitely need rehab. I heard Rochester is a better area for investments in NY.
I’m assuming they would. I paid almost as much for my car than these homes. Again I need more info. I wouldn’t mind throwing the money into something like that. I can se myself putting bars on the first floor windows! who knows. It’s worth a look anyway. I just saw on the news that Albany’s crime rate is the lowest its been in 10 yrs. I gotta do some digging… :biggrin
“reveals many buildings” This is a euphemism for “this is what the market looks like.” If getting rich were that easy, we would all be floating on yachts in the Caribbean instead of surfing real estate websites. There is a reason why the market looks that way: falling population, high unemployment, and low job growth, whatever…
Write a financial statement. Include an income column and an expense column. What are taxes? How much is insurance? What is the actual vacancy rate? (no way will a realtor tell you that!) Definitely look at deferred maintenance. This could cost so much money that it makes the entire deal very undesirable.
“I’d plan on having a property management company run things.” Be real careful with this. There are so many unscrupulous and inept people in this business it is absolutely ridiculous. It might help if you manage your own properties for a while so you know when you are dealing with someone who is trying to defraud you or is totally incompetent.
Talk with investors, not “buying agent” realtors. The realtor will always have a conflict of interest.
I don’t want to discourage you. Investing in real estate right now could be the best thing you could do for yourself financially. You don’t want to reach into your wallet (and your future income) only to find that you bought someone else’s headaches, do you?
Thanx for the tip Funder, but like I said, I have to find out the actual numbers. It’s in the actual numbers for the property and the area that I’m interested in. I said nothing about being a millionare, yacts or anything being easy… you did… The numbers will tell me story and I can take it from there. I’d have to use a property management company because, like I said, I live 45 minutes away. But in my local market, the investment properties are either a rehab or priced too high to produce cashflow. Just lookin’ at all ny options. But if I happen to strike it rich doing this I’ll invte everyone to my yacht! :beer
Here’s the way to really make the money on those, Phlemboy.
You buy the entire block, both sides, every building. Then you baracade both ends of the street and require a pass to enter. You hire armed security guards to walk up and down the streets 24 hours a day.
Then you evict everyone who can’t pass a drug test.
As soon as your block is clean and secure, you will find a large demand for low cost housing that it actually safe.
You’ll have to hire mercenaries to be security guards, not normal security guards, becasue the drug dealers will try to shoot and kill your security guards for the first 6 months or so, to try to reclaim their drug territory. So you want guards who don’t have any qualms about shoot to kill.
I’ll bet these ideas cut into cashflow in a big way!!!
:cheesy
Keith
I had a talk with a local realtor in that area that specializes in investment prop. He said he’d show me the areas but I have carry the M-16. That cracked me up. But he did say he had some 2-3 unit properties in better areas where professionals like to work & live. Those run in the $85,000 to $120,000 range. He said the rents produce positive cashflow. I’ll have to do some digging. Maybe I can do like Charles Bronson did in Death Wish 2 … He had some good ideas… I can film everything and make a movie! :beer