Albany NY Real Estate
Are you interested in investing in multifamily properties in Albany, NY? There is a lot to like about investing in real estate now, especially in affordable residential housing areas such as Albany, New York. Here, you can find a number of cheap houses to live in or to rent out and receive positive cash flow from. Investing in real estate has never been easier because of all the online resources at our service, and today I'd like to share with you some of the best real estate deals online.
Websites to Use
There are a number of great real estate websites out there. The first that come to mind are Trulia, Zillow, AOL Real Estate, and LoopNet, which mainly focuses on investment properties.
When Investing in Real Estate - Cash Flow is King
As I said in a previous article, I believe that investing in real estate is
The biggest problem beginners might have, besides coming up with the down payment for the mortgage is finding a good property to look at.
Properties I Look at Personally in Albany
I am interested in the city of Albany because of the local economy, which is driven by the State University (a large public school). There are plenty of students looking for housing in Albany, especially the downtown area. Housing in Albany is very inexpensive and rooms can be rented out easily, giving investors a steady stream of income.
Here are some property's I am currently looking at:
Property Example # 1
210 Myrtle Ave. in Albany is a 3-unit multi-family building, currently on sale for $119,000. The price per unit is close to $40,000. The cap rate on the building is 12.50 percent (this means you can expect your Net Operating Income to be 12.5 percent of the price, or close to $9,000. The property is currently 100 percent occupied, according to the listing.
"Cash flow shows possible first year cash on cash return of 25%....Vert solid investment." Cash flow is the amount you receive on your initial investment, after all expenses and debt service is paid. For example, say you put down 20 percent, or $24,000. If you're cash on cash return is 25 percent, you'd be making about $6,000 a year. (But This doesn't include the equity you'd be building up!). I consider anything over 20 percent to be very good.
Property Example # 2
138 Washington Ave. is a mixed-use retail property in Albany.
"Great mixed use property with tremendous upside potential. Long term Leases. In the heart of Downtown Albany. Steps from the NYS Capitol and NYS offices."
The price is $399,000, and has a cap rate of 12 percent. The Net operating income would equate to $47,880, and you can expect a cash on cash return anywhere from $17-$22k a year.
A Beaver St. Loft Conversion is selling for $299,000. This has 12 units, with a cost per unit of close to $25,000. "Phenomenal loft redevelopment opportunity in downtown Albany directly across from the Times Union Center (multipurpose arena). Vacant shell totaling 2 buildings 14,317 sq/ft (sold as-is) with small exterior parking lot included as well as possible underground parking scenario. The property was formerly an old union hall offering exposed brick, original harwood floors, detailed moldings and doorframes, with ground floor office or retail possibilities, be the first in Albany to offer loft living in a true downtown setting."
I would recommend speaking with a real estate agent and a professional property manager in the area you are looking to invest in, before making any decisions. Investing in real estate is a team sport, and these are just two several important members of your town. Usually a property manager will set you up with a good home inspector, contractor, etc. A real estate agent should know the area very well, and the property manager should manage properties that are like the one you are buying.
Investing in multi-family properties is all about the income aka cash flow. You want to buy a property that, when paid all the expenses and debt, leaves you with a nice chunk of cash each month.
Do a lot of research and reading before you decide that real estate investing is for you. There are several great real estate books out there. I recommend anything by Matthew Martinez and Robert Allen. They are both seasoned experts and will give you invaluable advice on investing in real estate.
Good luck investing in multifamily properties in Albany, NY.