Private Mortgage Investing in Rochester, NY

Rochester's housing market by the numbers

U.S. Census Bureau, ACS 2020–2024. QuickFacts DP04

Two-family houses are a big part of the stock: two-unit buildings hold 16.4% of the city's housing units, and three- and four-unit buildings another 9.6%. Census DP04 More than half of the housing, 53.7%, was built in 1939 or earlier. DP04

What drives demand for private mortgages in Rochester

The City of Rochester sells tax-foreclosed property at its own auction once a year, usually in November. Winning bidders put down $5,000 on the spot and pay the balance by the following week. City of Rochester Monroe County runs a separate auction each September. Monroe County

Buyers at those auctions, and anyone buying an old house that needs work, need fast, short-term money. That's the demand behind Rochester private mortgages.

Local rules that affect the collateral

• Rentals need a Certificate of Occupancy, renewed every 6 years for one- and two-family homes, or every 3 years in the Lead High-Risk Area. City of Rochester
• Since 2026, pre-1980 rentals in the high-risk area need lead dust wipe tests in every unit at each inspection. 2026 lead changes
• Under the City's 2025 auction terms, recording a buyer's deed took at least 60 days, and no permits could be pulled until then. 2025 sale instructions

Rochester risks to weigh

• Old houses hide problems, so renovations can run over budget and over schedule
• Inspections and lead rules can delay a rental or a sale
• Values are modest, so check how much equity is behind each mortgage

Our partner firm in Rochester

Tompkins Lending has worked with private mortgage investors on Upstate New York real estate since 1986, from its office at 115 Liberty Pole Way in Rochester. Tim Tompkins is a New York State licensed real estate broker and a landlord in Western New York.

Before you invest in private mortgages in Rochester, read the risks and get the free investor guide. Also see Syracuse and Buffalo.