Many Millennials and Gen Zs are looking for varied revenue and income streams that can help them ride out downturns.
The five people in this article believe that investment properties in CapNY are the right financial right move for them.
Read on for their insight and advice!
We got some advice from 5 CapNY millennials on buying investment properties. They shared their experiences on acquiring properties, living and working as landlords, along with many pros and a few cons.
Take Advantage of First-Time Buyer Rates
Steve Luttman, 34, is a real estate broker and owner of SJ Lincoln Realty – and, he’s an owner of his own investment properties. “Clients often aren’t aware that many loan products allow first time home buyers to purchase of multifamily buildings,” Steve explained. Meaning, you can receive the benefits of a low down payment mortgage with the added benefit of rental income. In a nutshell: you make money off your property investment. Additionally, “income from the rented units can help you get approval for a mortgage,” Steve said. “In my opinion, being a landlord is the best side hustle out there,” he said.
Partner With Family or Friends
Over a beer one day, cousins Abel Burgos, a 33-year-old cyber security network engineer, and Dâvid Burgos, a 28-year-old physical therapist, began talking about early retirement plans. This soon led them to purchase two investment properties, both of which they’re already seeing a return on. The first one — a beautiful, three apartment brick building — is in downtown Albany, off of Lark Street. “Currently I live in the house. When we close on the next property, I’m going to live in that one,” Abel said. The new building has four levels, and each apartment has two floors. They’ve managed to find good tenants using a credit check, background check, and application process.
Do Your Research, Know What You Want!
Gabby Fisher is a 28-year-old entrepreneur who is also the senior producer on the CapNY Initiative. Her investment property consists of three apartments, one of which she lives in herself. “In October, I purchased my multi-family property in downtown Schenectady.” The process “felt like a part-time job, especially as a first-time buyer,” explained Gabby. “I was counting on my realtor to guide me throughout the process. But, I also did a lot of research on my own.”
Gabby knew what was important to her: a thriving, walkable downtown, and an older home with a lot of character. “Schenectady stood out to me because you can get so much bang for your buck,” she explained. “I bought a beautiful three-unit home, with a backyard, a huge shed, multiple porches/deck, a driveway!” she exclaimed. “CapNY has so much potential. I believe property values here are going to be going up and up due to this renaissance,” Gabby said. Recently, Realtor.com ranked Schenectady 4th on its list of best cities for first time home buyers! Gabby couldn’t agree more. Gabby admits it’s a ton of responsibility. “If something goes wrong – a pipe or water heater blows, etc., it’s on me. I take on a lot of risk as a homeowner, but it’s worth it.” She plans to invest in additional homes in the near future.
Have Buffer of Funds for Unexpected Items
32-year-old accountant Alexander Bodensieck purchased a rental property in Ballston Spa. He used to live in one of the apartments, until he and his wife moved to Glens Falls. They are now managing the apartments. Compared to apartment living, he said, “Owning is a little cheaper,” but admits it’s much more time consuming and stressful. “There are certainly pros and cons of homeownership,” he continued.
“I talked with mortgage brokers that didn’t know the rules on Private Mortgage Insurance (PMI), which was something I wanted to avoid.” (Note: Click here to learn more about PMI / Private Mortgage Insurance here.) Alex said he saved a lot of money for closing costs, but needed more for updates and repairs after purchasing the property. He would advise making sure you have a decent financial buffer for millennials buying investment properties (or the ability to obtain credit) after purchasing a house, to prepare yourself for unexpected costs.
Written by: Jessica Kelly
Jess is a journalist and photographer with a focus on food, travel, and entertainment. She’s written for over 10 different local publications in New York State in addition to the Huffington Post, Cosmopolitan, AAA Northeast, Eater, Dame Traveler, Food52, Insider, Wine Enthusiast, Kitchn, AAA World Magazine, Thrillist, and more. Follow her adventures on Instagram @Adventures.Are.Waiting.