Why Invest In Rochester?

1. Rochester houses have Low Costs, High Cash Flow

2. Appreciation

3. It’s No Longer a Flippers Market

Are you ready to profit from owning a property in Rochester? Contact Randy Ramadhin at 416-656-0036 ext 2 or email This email address is being protected from spam bots, you need Javascript enabled to view it   to get started.

About Rochester
Rochester is a city in Monroe County, New York State. The Rochester metropolitan area is the second largest economy in New York State, behind the New York City metropolitan area. Rochester’s population is approximately 206,759 in 2007, making it New York’s third largest city. It is at the center of a larger metropolitan area which encompasses and extends past Monroe County and includes Genesee County, Livingston County, Ontario County, Orleans County and Wayne County. This area, which is a part of the Western New York region, has a population of 1,039,028 as of July 1, 2005.

Rochester was ranked #6 among 379 U.S. metro areas in the 25th edition of the Places Rated Almanac for Most Livable Cities. In 2007, Rochester was ranked as the top city in the country by Expansion Management Magazine for quality of life. Expansion Management rated the region’s public schools sixth best nationwide among metropolitan areas of a million people or more.

The Rochester area is home to a number of international businesses, including Fortune 1000 companies Eastman Kodak, Constellation Brands and Paychex.

Statistics

Estimated median household income in 2007: $30,927 (it was $27,123 in 2000)
Rochester:    $30,927          New York:    $53,514

Estimated median house or condo value in 2007: $69,100 (it was $62,100 in 2000)
Rochester:    $69,100          New York:    $311,000

Unemployment in September 2007:
Rochester:    5.6%              New York:    4.4%

Mean prices in 2007:
All housing units: $94,831
Detached houses: $87,391
Townhouses or other attached units: $136,173
In 2-unit structures: $143,725
In 3-to-4-unit structures: $169,948
In 5-or-more-unit structures: $100,736
Mobile homes: $33,200

Median gross rent in 2007: $701 - Renting percentage is above state average

Why Invest In Rochester?

1. Rochester has Low Cost, High Cash Flow

Top 10 Cash Flow Property Markets
NuWire's rankings of the areas with the best potential for cash flow
Published on: Thursday, January 03, 2008    

Cash flow is one of the most important considerations investors face when making real estate purchases, particularly now that so many markets across the country are struggling. Those seeking high-income property should take cash flow into account first and foremost when deciding whether or not to buy. Cash flow refers to the amount of cash coming in relative to the amount going out. In ranking the top 10, potential for future appreciation was not considered; this list is ranked on cash flow alone. While appreciation is often the most significant form of profit for real estate investors, cash flow is easier to determine and lower risk. Although many elements combine to influence cash flow, one of the most important ones is the surrounding market. Areas with lower home prices are more likely to have positive cash flow. To determine our top 10 cash flow real estate markets, NuWire adjusted the average rent payment for the area according to the rental vacancy rate before comparing it to the amount spent monthly on mortgage payments and upkeep, including utilities, taxes and insurance. Mortgage payments were estimated based on an average loan—30 years at 80 percent loan-to-value and a rate of 6.5 percent—and the median cost of a home in the area. Statistics were gathered from U.S. Census data.

#1 - Rochester, New York:
Despite the fact that Rochester’s population fell by 6.74 percent, from 219,773 to 204,963 between 2000 and 2006, and the fact that it has the highest rental vacancy on this list at 17.9 percent, Rochester still managed to claim the lead as the city with the best cash flow for investors. Homes in Rochester are affordable, at a median price of $67,600, and median monthly upkeep costs and estimated mortgage payments are low, at $418 and $341.82, respectively. The median gross rent in the area is $669.  – Cali Zimmerman

Although the vacancy for the Rochester as a whole is very high, there are pockets (which we track by zip code) that have less than 1% vacancy. These are the areas that we invest. Also, The average homes that we are investing in are $30,000 - $45, 000 with rental income on average of $500 / unit. Compared to many other cities where that $30,000 would just be a down payment with a similar rental income – THIS IS A STEAL!

2. Appreciation

Rochester NY was rated as the #2 highest city in the Northeast by Fortune magazine for real estate appreciation for 2007-08.

3. It’s No Longer a Flippers Market

The flippers are flopping
Quick turnover not as easy as it appears

"Big profits! Quick turnovers! Everyone's getting into the act! Live the dream of working for yourself while raking in the cash." House flipping -- the act of buying, renovating and selling a property for profit -- was a seduction that tempted many during the real-estate market's near decade-long boom that's now sputtering...With falling home prices and credit more difficult to get, the ranks of speculative flippers are thinning by the day. "It's becoming more and more difficult now," confirms Mr. Kamoutsis. "Even our regular deals are failing due to financing." The Canadian housing index fell for a fifth straight month in October due to slumping home sales, Statistics Canada said this week. And last week, the Canadian Real Estate Association (CREA) said that nationally, the average price of a resale home last month suffered its steepest decline in 26 years, down 10% from a year ago, to $281,133. Hardly the stuff of quick turnovers and big profits. "We're seeing a lot of the homes that were renovated and are on the market now unfortunately sitting there," Mr. Kamoutsis says. Not surprisingly, it's precisely at the market's peak that popular interest is highest, says Lawrence Smith, a professor on housing in the University of Toronto's economics department…Between 2002 and the end of 2007, home prices in Canada soared 78%, to $315,800 from $177,100, according to CREA figures. Clearly, there was room to flip. - Jamie Sturgeon, Financial Post 

Unfortunately, there is no longer profit to be made in flipping homes. So if you want to invest in real estate, looking for cash flowing properties is the best way to go.

Are you ready to profit from owning a property in Rochester? Contact Randy Ramadhin at 416-656-0036 ext 2 or email This email address is being protected from spam bots, you need Javascript enabled to view it   to get started.