This is THE one! When a tour turns into an offer
So, you've been on a few property walk-throughs, eyeballed a bunch of buildings, but none quite hit the sweet spot for your business model or budget. Ever wonder what it's like when you stumble upon a property that actually makes you want to whip out your checkbook? Well, buckle up, because we're about to take you on a ride through our recent adventure!
We toured a historic 3-family building with a store, snapping pics like overzealous tourists along the way. In this post, we'll be dissecting our tour photos and spilling the beans on our real-time analysis and thought process as we saw the property for the first time. Our mission? To share what we saw, how it fits (or doesn't) with our business model, and our grand plans for improvement. Hopefully, by peeking into our brains, you'll develop your own sixth sense for deciding when to pull the trigger on a property bid.
The approach: Before you even set foot in a property, channel your inner detective and scope out the neighborhood. Take a stroll, soak in the local vibe, and get a feel for the community. Our recent tour in downtown Troy kicked off with a neighborhood escapade. Troy's downtown is home to one of New York State's largest farmers markets every weekend - talk about a jackpot! We couldn't resist diving into the market scene to really get a taste of the community. The cherry on top? The property was just a hop, skip, and a jump (okay, two blocks) from this buzzing hub. Troy even boasts an indoor downtown space for year-round farmer's market fun!
After exploring towns and neighborhoods across New York, Connecticut, and Pennsylvania for investment properties, I was hit with a serious case of déjà vu. Troy felt like a blast from the past - Brooklyn of the late 90s/early 00s, to be exact. Picture this: gritty but chic, 'broke' but brainy, a smorgasbord of quirky indie businesses, offbeat coffee shops, and art galleries that make you go "huh?". Oh, and did I mention the academic trifecta? A top-notch global engineering university (RPI), an amazing liberal arts school (Russell Sage College), and a local community college (HVCC) to boot.
Now, I'm not psychic (though that would make this job a lot easier). Before embarking on property-hunting road trips, I always grab a neighborhood report from a nifty service called Neighborhood Scout. We're talking hyper-local intel here - not just state or town level, but down to the specific neighborhood. According to the report, Downtown Troy is basically the cool kid on the block - one of the trendiest and most walkable towns in the US. Talk about hitting the jackpot!
The walk around: Armed with our neighborhood know-how, it was time to play property detective. As investors with a knack for turnarounds, we're always on the hunt for hidden treasure. Understanding what can be legally built or modified is key to unlocking that sweet, sweet value.
Our first encounter? A 25' wide vacant storefront that screamed "makeover time!". While it was looking a bit worse for wear, we saw dollar signs in upgrading the commercial space. Next up, we discovered a narrow alley - a relic from the horse-and-buggy days. Suddenly, visions of residents wheeling bikes into a Pinterest-worthy communal garden with bike storage danced in our heads. Trust us, for apartment dwellers, not having to lug a bike upstairs is basically the holy grail.
The alley opened up to a courtyard that felt like the backstage of a theater - access to everything! We're talking a mezzanine studio apartment, the main building's first floor, a mysterious extension, and a 1400 sq ft two-floor carriage house. All these neglected commercial spaces were just begging to be transformed into swanky apartments. And let's not forget about egress - or as we like to call it, the "GTFO factor" in emergencies. The more escape routes, the easier it is to convert spaces for residential use. Safety first, people!
The commercial space: Stepping between two towering 10 ft display windows, we entered what felt like a time capsule. Picture soaring 16 ft ceilings and a room that once housed a beauty salon for three decades, now sitting unused for over a dozen years. Sure, a simple commercial renovation might be the obvious choice, but where's the fun in that? With this property's split personality zoning (both commercial and residential), we started dreaming up live/work units. It's like a mullet - business in the front, party in the back!
As we ventured deeper, the space took on a homier feel, until - plot twist! - we hit the extension. Another massive room with multiple exits to the yard and 14' ceilings greeted us. Despite being buried under a mountain of junk, we could see the potential for a light-filled studio loft that would make any 20-something professional swoon.
The residential space: Time to check out the living quarters! A separate entrance from the street led us to a staircase so grand, it probably has its own Instagram account. Our first stop: a quirky studio apartment, courtesy of a previous owner's value-unlocking efforts. it’s a bit small, but in these parts there is high demand at the low price. Next up, the second floor housed a three-bedroom unit that used to be two separate apartments - talk about a glow-up! Last but not least, we climbed to the third floor to find a four-bedroom apartment playing house with the attic.
Clearly, a previous owner had some serious vision back in 1981. But hey, that was then, this is now. We saw an opportunity to double down on those decades-old improvements and go all-in on unleashing the commercial space's hidden potential.
Now, let's be real - this project isn't for the faint of heart. The opportunity here exists precisely because it scares off the competition. It's like running a startup: you need vision, project management skills, and a knack for budget juggling. It's tough, but that's why the payoff can be so sweet. Then again, we're guessing your day job isn't exactly a walk in the park either!
Exploring potential real estate investments, like this historic 3-family building in Troy, is a thrilling adventure that demands a sharp eye, thorough analysis, and the ability to see past the cobwebs and clutter. By sharing our thought process and experiences, we hope we've given you a peek into the mind of seasoned investors (spoiler alert: it's a weird place).
Remember, successful real estate investing isn't just about what meets the eye. It's about understanding the neighborhood, spotting hidden gems, and having the vision to transform spaces. Whether it's reimagining a dusty commercial space as hip live/work units or seeing potential in a room that looks like it lost a fight with a junk drawer, the ability to spot opportunities others might miss is what separates the pros from the amateurs.
This Troy project, with its mishmash of residential and commercial spaces, is both a challenge and a goldmine of potential. It's a perfect example of how combining local market knowledge, creative thinking, and a solid grasp of zoning and building codes can unlock hidden value in seemingly complex properties.
But hey, this is just one piece of the real estate puzzle. The market is always changing, and staying informed is key to your success as an investor.
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