By Mike Williams
1/25/23
We are active investors in Central NY and Finger Lakes real estate. From Geneva to Truxton, we have bought twenty homes and, of those twenty, have renovated and sold seventeen. We also have helped investors with evaluating and purchasing homes in CNY.
In the past few years, we’ve put in many offers for homes that were not the highest offers. These include offers for our own portfolio as well as those for other investors. In no instance have we regretted not making the highest offer. We knew our offers were fair based upon either:
- The estimated return on investment (ROI) based upon expected rental income less expenses
or
- The estimated cost to rehabilitate a property and earn a return on our investment through its eventual sale.
Certainly some investors are willing to accept a small ROI (less than 5%) with the expectation of an increase in the property’s underlying value providing them a larger return when they sell the property. Accepting a smaller ROI with this expectation is a riskier way to invest in real estate, and we’ve not followed this strategy in any acquisition. We have been fortunate to have earned good returns on investment properties that we sold with capital gains, though nothing guaranteed these would occur.
We know of two good ways to make money on investment properties:
- Add value to the property to make it more desirable to buyers. We enjoy making substantial improvements but sometimes find a rare home that needs only cosmetic updates.
- Manage the property and rent-paying tenants in a way that maximizes the satisfaction of both owners and tenants.
Want to know more about how we’ve managed investment properties? We’re happy to share!
We also are happy to discuss your property investment goals with you. Contact lakeandvillagerealty@gmail.com to learn more.
