I met with a couple of downstate investors today who said they were fed up with the inexperienced real estate"kids" they had spoken to about purchasing investment property. It made me remember what I have always told buyers. Don't ask your agent how many homes they have sold. Ask them how many homes or buildings they have owned themselves. I work with investors all the time and I am active in the market myself. Here is a home I purchased this week. No I didn't have any inside line on this. I purchased it straight out of the Multiple Listing Service just like any buyer could have. It illustrates there is still money to be made in Albany NY Real Estate. These are actual numbers in a student rental section of Albany.
Purchase price $110,000
Taxes-$4586 (property is assessed at $158,000 so this should be coming down)
Loan amount $88,000 at 6.12%
Monthly payment =$534.41+$382 (taxes)+$65 (insurance)+$38 (Water/sewer)= 1019.41
Total monthly payment at current assessment is $1019.41
Total rents will be $1950($975/unit)
Monthly cash flow=$930.59 or $11,167/Year
Total cash investment including closing costs, down payment, attorney fees, title insurance etc =$23,776.
Cash on cash return at full occupancy=$11,167/23,776=46.9%
Ok Additional outlays will include a couple of thousand bucks for paint and cosmetic updating. However the total return will still be over 40%.
Great returns are possible in Albany Real Estate! If you are interested in adding a home like this to your portfolio call or email me at Albany NY Real Estate