I recently came across a good buy in Rochester NY. USA. If I had the money I would certainly consider buying it but as I don't I thought I'd pass it on to other readers. It's a 2 unit place with long term tenants each paying $495 (Could be $525 in this area. It's been a money-maker for the current 20 plus year owner. Price is under $40,000
Contact person is [email protected]
I've found Dennis as an agent to be responsive, professional and excellent to deal with. So I think it's worth checking out.Jeff Crombie ([email protected])
Hi Jeff,
thanks for the info .
Have you previously invested in rochestor ?Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
How could this be right? $1000 combined rent for a purchase price of under $40,000 What is this…Super Positive Cashflow. Why would the people renting it not buy it with an income to support that rent amount, they could buy it and rent one side and still pocket money.
Hi Jaffasoft,
The figures look good dont they and in general the houses that you buy over there for $40000 are in not to bad of shape but I would recommend that you visit,view and have a property inspection first.The bad news is that the tenants I have found over there dont care for your property,are very poor payers,your house can be vacant for a period,repairs and maintenance can become expensive and hidden costs are everywhere ie Property management 10%,taxes $700-$1500 per year,water rates ???,lawn mowing $50 per month,snow shovelling $50 per month,Book Keeping $20 per month,phone calls $20 per month.If your house is vacant during winter you will need to have your heating system on to avoid your pipes freezing.So far in the past 3+years I have evictede about10-12 tenants,I have had tenants steal items from the propertie,been arrested in the property for drug dealing,and even one murder.Why dont the the tenants buy the property you ask well why would you shell out money to buy a property when you can move in stop paying rent after a few months and get to live rent free for a few months while you try to kick them out when and they do leave they find another house and repeat leaving a damage bill behind them and court costs.I would discorage anyone to invest in the States.
MartinHi guys,
good to hear from you Martin !
It all seems too good to be true doesnt it Jeff.
If this property is the same as most of the other properties at the price on the market in west new york,
the truth is that 40K property , was possibly(probably) purchased recently for around 3 to 15k ,
had 2 to 3k spent on a good tidy up and on sold .(or put on the market now.)
There are literally many many hundreds for sale and i know people who honestly have had trouble giving them away
,that have ended up letting the city re possess them.The tenants are tough,
and the management is even tougher,
and the integrity is even worse in the area so dont fry yr money mate.
Dont even do it if you can buy them at 3to 15k ,unless you are in the area yrself and can manage the whole of the deal ,
dont put yrself through the stress !Kind regards
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Sounds like you could be the current owner Jeff??
just a quick question. For a good area in Houston. I have made the following assumptions on cashflow, would appreciate feedback from anybody here:
– 10% property management fee
– 10% (gross income) for maintenance
– $50 per month for insurance
– $100 per month for utility bills
– additional 5% contingenciesAre they enough? The purchase price is $200K and gross cash yield is 18.5% and with the above assumptions, my yield drops to around 11%. Does that sound right?
Cheers
JohnIs it a single dwelling home or multi unit dwelling ?
Richard Taylor | Australia's leading private lender
Its a single dwelling home. Any thoughts?
Hi John
Yes your figures sound about right.
Still not a bad yield is it.
Richard Taylor | Australia's leading private lender
Re Rochester under $40,000
Firstly I am not the current owner. This place has probably been sold by now. But you guys missed out on a good bargain. For a start the property was in a good area and secondly it had 2 long term tenants.
These are 2 key factors when buying a rental property that will be a winner.
One good indicator of the type of area is the rental price being paid. If properties are getting below $400 you can be pretty sure they are in a not so good area, whereas if the rental is nudging the $500 mark the properties are certainly in much better areas.
And as I said before, when it comes to US real estate agents, Dennis is a great person to deal with and he may still have some good properties in Rochester. So if you're looking for an investment property in the US and you want to deal with someone who will treat you like a professional then by all means contact [email protected]. and I'm sure you won't be disappointed.
I've talked to many estate agents in the US and I have bought 3 properties, Jamestown, Buffalo and Rochester, so if you can profit from any of the above tips – that will be sweet.
Jeff Crombie ([email protected])
Which US lender do you use to finance these deal Jeff ?
Richard Taylor | Australia's leading private lender
Average utility bills for average house in Houston over US$330.
Personally i would give the northern states of USA a call. The figures on house prices and job losses coming from NY MI and other close states are only going to get worse.
And Rochestor has one of the highest crime rates in america…buffalo is struggling economically and has been for some time.US gr8 place to invest but you need to pick your spots. Its like investing in Adelaide at the moment with all of the job losses from the auto industry. Doesnt matter which country youre in, you need to do your DD
I see some people are knocking Rochester and Buffalo as places to invest in, so I'd like to point out what they've got going for them, apart from very affordable housing and high yields. (like 18% net or more)
For a start Buffalo and Rochester are the second and third largest cities in New York, so you are certainly not investing in one horse towns. What's more Buffalo has a major tourist attraction on its border – the Niagara Falls
Also while house prices in other cities have dropped dramatically since the great mortgage fiasco, prices in Buffalo and Rochester have remained fairly stable. In fact in February 2009 house prices in Buffalo rose 3%.
It was stated that Rochester has one of the highest crime rates in America but actually it is not in the top 25 cities. Admittedly it is up there, with a ranking of 32 in 2008 .
On the other hand Rochester was ranked 6th amongst 379 US metropolitan areas in the 25th edition of 'Places Rated Almanac for Most Livable Cities in the US. Also in 2007 it was ranked top city in Expansion Management Magazine for quality of life. (See Wilkpedia)
I am confident that both Buffalo and Rochester have great potential as investment centres for the future.
However I must admit there are a lot less pitfalls and worries investing in Australia, which has a lot better regulated real estate system in my opinion.
Jeff Crombie ([email protected])
Jeff
Hey mate I just came back from the states in August and the reason I was there was to buy / look at property in Rochester NY, Buffalo NY, Las Vegas NV and Detroit I spent 27 days looking at all types of homes and speaking to management and property agents. I had about 8 months prep before I left and had seen thousand of homes online before arriving. drop me an email through my website if you have any questions.
Jason Simpson
http://www.cashflowgold.com.au
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