Binghamton NY
Good Day all,
I am investing on my first property in Binghamton NY. Two family home 43k already rented for 1100 per month. I was thinking about doing a few updates to the property and putting it back on the market for 70k or so but the repairs require are about 10k to 15k.
Anyone out there familiar with real estate in Binghamton?
I dont know if the property value would increase on a home that is from 1910 or so.
Probably has something to do with everyone of those houses needing in reality $50,000 worth of work and nobody willing to put that type of money into them.
It sounds like rents are, at the very least, adequate for positive cash flow.
Have you given thought to a rehab to rent strategy? Possibly rehab to flip a couple to get cash on hand then rehab to rent several. (It sounds like you have thought of this.)
If you, assuming the plan above, then had 2 rentals similar to the one you have now, but in nicer condition you could tuck some of your cash flow away for maintentance of the existing properties and reinvest the remainder in another rehab project. Several HML have a year terms with modest payments, or interest-only payments. Provided you could get the rehab done in a year, your cash flow would make your payments and provide moneys toward the repairs.
Having a university close by *almost* guarantees renters, albeit somewhat seasonal. Possibly give them the option to hold the property for them (and their contents, insurance providing) during the summer months by charging a slightly higher rent through the year. You would have summer vacancies, but have monies saved those months. If they choose not to take the option, students take summer classes also.
Just food for thought. I wish you all the best in your investing indeavors.
.02
Quinsee
Austin is a HUGE university town. There are lots of properties around the UT campus that rent to students (think animal house). An owner that I talked has an interesting strategy in dealing with summer vacancies.
He only does one year leases.
To secure the property, the tennants have to sign a one year lease which guarantees that he will have income during the summer months when the unit will likely be vacant. To compensate, he charges a slightly lower monthly rent than the competition. The low advertised rent generates lots of interest and he always easily finds tennants. Sometimes the parents of the student(s) just pay the full year up front.