Home Buying in Rochester>Question Details

Jerry Bishop, Home Buyer in UK

Are Rochester houses a good investment for rental now ?

Asked by Jerry Bishop, UK Sat Jun 28, 2008

I am a landlord here in UK, Rochester houses appear exceptionally cheap by UK standards and ofer excellent rental returns. I and some friends are thinking of buying in;but think there must be a serious downside. I would welcome local advice and possibly asssistance.
Jerry Bishop

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Emmanuel Udeh’s answer
Hi Jerry,

The down side is that capital appreciation is low in Rochester. It has generally hovered between 2-5% over the past 10yrs. The main factor behind depressed prices is population loss. High property taxes, job contraction and lack of housing diversity are forcing people to move from the city into the suburbs and other counties. I think its impressive that Rochester has achieved capital appreciation inspite of these trends. Foreigners like yourself are the key source of demand because those that can afford to buy are moving out.

The upside is that capital appreciation is minimally consistent. While prices are currently falling between 15%-20% in California, Florida, Nevada and Arizona Rochester is still at appreciating at 3%. And when California resumes double digit appreciation Rochester will still be between 2%-5%. The high cashflow of properties is also a huge upside which offsets the low capital appreciation. Some properties have been known to achieve a 30% gross yield. But beware because Rochester has good and bad neighborhoods. My advice is to be suspicious of anything below $40k and make sure you're using a good property management company. Stick to the 19th Ward of the city were there's a lot of investment activity. I hope that helps.

Emmanuel
Web Reference: http://www.XenonREI.com
1 vote Thank Flag Link Fri Aug 15, 2008
I think Rochester is a great rental market. I've sold several properties to international investors, who have realized great cash flow.

As others have pointed out, it is vital to have a good property management team.

The downside would be the risks involved with an investment so far away. You would have to rely heavily on your real estate professional to give you accurate numbers and realistic expectations for your investment.

I work alongside another agent who specializes in UK transactions and she's built a great team of people to assist with that type of transaction. I'd be happy to pass her info along if you are interested.
1 vote Thank Flag Link Thu Aug 14, 2008
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0 votes Thank Flag Link Wed Jul 9, 2008
Rochester is a largely depressed area. Just make sure the numbers look good - good for college rentals. I can certainly help you out in finding a realtor - I know a guy who helped one of my friends, they do prop management as well. My friend, unfortunately bought too high and his unit is operating in red.
Web Reference: http://www.tommcgiveron.com
0 votes Thank Flag Link Sat Jun 28, 2008
Yes there are good rentals to be found in the Rochester, N.Y. market; as Gail said you would need a good property management company. There are a lot of low priced homes but would also require a lot of repairs. If you would like assistance feel free to contact me.
Thanks Ray
0 votes Thank Flag Link Sat Jun 28, 2008
I have owned in Rochester for some time (I live in Long Island NY); Rochester is a great rental market, but have had many challenges of being an absentee landlord. The biggest challenge is finding a property management company that I could trust.

Rochester has been good for rentals and with the housing market forcing so many people out of their homes, rentals are up everywhere..

If I had to do it again in Rochester, I would not.

I provide property management services in Long Island. If I had someone like me in Rochester, I would not mind. Over the years, I have not found a Realtor who was willing to manage properties for me and have been financially damaged by either unscrupulous companies or having no one at all.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Sat Jun 28, 2008
Some areas of Rochester do have a higher crime rate than others. I went to college in Rochester but it's been a while so I can't give you any specific neighborhood advice. You will want to be able to rent to students attending the University of Rochester. Hopefully a local agent will jump in here and help you out. If not, there's always Buffalo :)

Good Luck!
0 votes Thank Flag Link Sat Jun 28, 2008
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