Real Estate Investing in Rochester, NY..wait what? 🤔

If I say Rochester, we both know what comes to mind..absolutely nothing. That's ok, I don't blame you, but I'm here to change that. If you're the type of investor who likes high cash-flow and doesn't mind a little risk, then this one's for you. Why do I say risk? Because Rochester has a ✨bit✨ of a crime problem - so much so that in 2021, the mayor of the city issued a state of emergency on violent crime, another in 2022, and a cheeky extension in 2023. But don't let that dissuade you - trust us - it's not all bad, or we wouldn't be writing this (believe me, it's Friday).

In this blog post, we're going to tell you about some of the safest, most walkable areas of the city, which are likely ideal to those on the lookout for the "worst property in the best area". Alternatively - for the daredevils amongst you - we can propose a more risky, albeit very tempting location (we saved that one till last). Stay tuned for the crime map at the end too (don't skip straight to it though or the cave spiders will hide it).

Quick disclaimer: Rochester is one of those "it changes block-by-block" cities so definitely visit in person before buying anything.

Top Neighborhoods for Investment

1. South Wedge This is one of those Rochester ✨gems✨ (trying not to cringe) that you can't ignore. It's one of the safest neighborhoods dotted with an array of quaint, charming houses and bustling with activities. South Wedge's walkability score is through the roof. The area is comprised of tree-lined streets, and proximity to parks. On the amenity side of things, you'll find some real tenant magnets in the form of bougie coffee shops, bakeries, and highly rated restaurants. As you'd expect from these characteristics, the neighborhood isn't primed for cash-flow, but don't look away just yet. With median prices of only $250k and YoY appreciation of 57% from Sep. '22 - Sep. '23 according to Redfin, this area is textbook "buy the worst house in the best neighborhood". Whether you're flipping, holding for appreciation, or going for off-market distressed properties - don't ignore this area.

2. North Winton Village This is another standout neighborhood in Rochester that deserves your attention, especially if you're targeting professional tenants. North Winton Village is a vibrant, friendly, and above all, walkable neighborhood. It's situated right next to several local employers including the Comedy Club, several printing businesses, a co-working space and a design agency. The area is packed with charming bungalows and craftsman-style houses, combined with local amenities including a variety of cafes, grocery stores, and eateries, offering a high quality of life. Prices here are a bit higher compared to Rochester's mean, but much like in South Wedge, we'd recommend finding a property that needs a little work and has a strong ARV. North Winton Village is indeed another perfect example of "buy the worst house in the best neighborhood". So, whether you're into flipping or looking for properties with high appreciation potential, don't overlook North Winton Village.
3. Cobbs Hill A lovely area in the Rochester region: the neighborhood perfectly blends city living with a taste of nature's tranquility. Its crowning glory is the Cobbs Hill Park, a popular spot among locals for its picturesque views, hiking trails, and sports facilities. The best part? It's just a stone's throw away from Wegmans, a popular grocery store chain in the area that's known for its quality products, fresh produce, and delightful bakery. Residents have the convenience of grabbing their daily essentials without having to travel far. The homes in Cobbs Hill are predominantly family-friendly homes, many with a rich history and unique architectural charm. For real estate investors looking for properties in a thriving, convenient, and scenic neighborhood, Cobbs Hill is an area worth considering. With a median sale price $350K with 12% YoY appreciation from Sep. '22 - Sep. '23  according to Redfin, this is again an area to watch for flipping and/or off-market properties.
4. 19th Ward Ok we've drawn this out long enough, here's the exciting part. As we mentioned in our introduction, Rochester has several sh*tty crime-ridden areas, and ✨big coincidence✨ those are the ones with the most cash-flow. Now thankfully, we don't think of the 19th Ward as that, but it is a mixed bag. From what we've seen, some of the best balance between strong cash-flow and a "chill residential vibe" is located south of Brooks Ave and west of Thurston Rd, as you can see from the screenshot below. This is a community that has been enriched with diversity, culture, and a strong sense of identity. Residents take pride in their neighborhood and have a pronounced community spirit — the kind that can fuel revitalization and increase property values over time. In terms of potential tenants, the area is very close to the University of Rochester, and also Wegmans Corporate Office, making the area appealing to students and professionals alike. According to data from Redfin, median sale prices are significantly lower here, offering an attractive entry point for investors with a keen eye for potential and the stomach for higher risk. If you like the long game, the 19th Ward might just be your next goldmine.

Conclusion

In conclusion, Rochester, NY presents a variety of compelling real estate opportunities for both flippers and long-term investors. The city's wealthier districts offer excellent potential for flips, while the 19th Ward is more suited for buy-and-hold. However, as with any investment, caution is advised. It is always worthwhile to visit in person, get a feel for the neighborhood, and understand the dynamics at play. Google Street View can also be an invaluable tool for remote analysis, and please use a crime map like this one to stay up to date on how different areas change over time. Ultimately, the success of your investment will hinge on thorough research, due diligence, and a careful balance of risk and reward. Rochester, NY could very well be the next hotspot for your real estate ventures.

Godspeed.