Flipping in Rochester is a margin game. Buy prices are low, but so are resale prices, and an old house in a cold climate can eat a budget fast. The financing has to fit the deal, not the other way around.
In short: LendingStreet funds fix and flip projects on 1-8 unit homes across Rochester and Monroe County, from $150,000 to $5M+. Programs go up to 90% of cost and up to 100% of the rehab budget on some programs, with interest-only payments and closings in as little as 10 days. Rehab funds are released in draws as the work is done, and you exit by selling or refinancing into a DSCR loan.
Retail buyers pay the most for updated homes in the suburbs and in a few city neighborhoods. Irondequoit, Greece, Gates, Chili and Webster have capes, ranches and split-levels that sell to first-time buyers once the kitchen, bath and mechanicals are done. Brighton and the Park Avenue and Browncroft areas command higher prices for well-done renovations of older homes.
In the 19th Ward, Beechwood and the northeast side, many investors renovate doubles and sell them to other investors or keep them as rentals rather than selling to owner-occupants.
Know your buyer before you set the scope. A first-time buyer in Greece wants a clean kitchen, a newer furnace and a dry basement; a buyer in Brighton expects higher-end finishes and will pay for them. Over-improving for the neighborhood is one of the easiest ways to lose money on a Rochester flip.
Much of Rochester's housing stock was built before 1950. Expect to find original wiring, galvanized pipes, wet basements, aging chimneys and lead paint. Leave contingency in the budget and get the sewer lateral and foundation looked at before you close.
Exterior work such as roofing, siding, concrete and grading slows down or stops when the snow arrives, usually from late fall through March. A flip bought in October may not list until spring. Build those months into your carrying costs, and plan interior work for the cold season.
Spring is also when many Rochester buyers shop, so a winter rehab that lists in April can line up well with demand.
Heating matters to buyers here too. A new high-efficiency furnace or boiler, added insulation and updated windows are selling features in a city where winter lasts for months.
This example is illustrative and not a quote. An investor buys a dated colonial for $150,000 with a $60,000 rehab budget. The after-repair value is estimated at $265,000. The loan covers 85% of the purchase and 100% of the rehab, for $187,500, about 89% of total cost and about 71% of after-repair value.
Assuming the full balance is outstanding for six months, estimated interest-only payments total about $9,844. Taxes and insurance during the project are $2,400, closing costs on the purchase are $6,000, and selling costs at about 7% of the sale price are $18,550. Estimated profit is about $18,206, on roughly $40,744 of the investor's own cash.
Change any input and the result moves quickly. Two extra months of carrying costs or a rehab that runs 15% over budget would cut the profit in this example by a large share, which is why contingency and a realistic timeline matter so much on Rochester flips.
| Item | Amount |
|---|---|
| Purchase price | $150,000 |
| Rehab budget | $60,000 |
| Loan amount | $187,500 |
| Estimated interest, 6 months | $9,844 |
| Taxes, insurance, closing and selling costs | $26,950 |
| Sale price | $265,000 |
| Estimated profit | $18,206 |
The City of Rochester requires building permits for structural, electrical, plumbing and many other changes, and towns run their own building departments. Federal rules require lead-safe work practices on pre-1978 homes, and the city's lead rules apply when the property will be rented.
Unpermitted work can surface when the buyer's attorney and inspector review the house, so pull the permits and close them out before you list.
The purchase portion funds at closing. Rehab money is held back and released in draws after an inspector confirms each stage of work. You or your contractor front each stage, then get reimbursed, so plan working capital for the first phase.
Ask your contractor to match their invoices to the draw stages. Clean paperwork and photos of completed work help draws move faster, which keeps subcontractors on the job and the project on schedule.
Most New York home sales use attorneys for both buyer and seller, and contracts often include an attorney approval period and an inspection contingency. Buyers' inspectors in Rochester look hard at roofs, basements, chimneys and electrical panels, so finish those items properly rather than covering them.
Factor in the state transfer tax and attorney fees on the sale, and allow time between accepting an offer and closing. Your loan's interest keeps running until the sale funds.
If the numbers favor holding, a Rochester flip can become a rental. Refinancing into a DSCR loan pays off the short-term loan, and in the city the property will need a certificate of occupancy before it is leased. Doubles often make better holds than flips here because the rent supports the payment.
Send the address, purchase price, scope of work and your after-repair value through the form below, or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. We will size the loan and explain the draw schedule.
It helps to include photos of the current condition and contractor bids. A realistic budget with contingency gets a clearer answer than a rough estimate.
Up to 90% of cost and up to 100% of the rehab budget on some programs. The loan is also measured against the after-repair value.
In as little as 10 days when the file is complete and the title is clear.
Experience helps with leverage and terms. Newer investors can qualify, often with lower leverage or an experienced contractor on the job.
Yes. Fix and flip loans use a valuation that includes the after-repair value, which sets how much can be funded.
Yes. Loans cover 1-8 unit properties, and doubles are common in Rochester.
Plan for it. Interior work can continue, but exterior work often waits for spring, so budget for extra months of interest.
Yes. A DSCR loan can pay off the flip loan once the property is leased, qualifying on the rent.
Yes. We fund flips across Monroe County, including the City of Rochester, Irondequoit, Greece, Gates, Chili, Webster and Brighton.
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