Starting a property portfolio (Buffalo, Amherst: real estate, renters, mortgage)

[Phil.1]

Hi
I am considering dipping my toe into the property market in Buffalo, any suggestions. I am British and would like to purchase some residential property. Does anyone have any suggestions?

[CAugust]

Well if I my offer some suggestions...... since I see this all the time.

Please remember that if a property is priced very low, there is a reason for it and I would stay away from it. While there are good deals out there, something that is priced at 12k is worthless imho of course.

Make sure you get a very reputable property management company - in order to legally be a property management company and collect rents, someone MUST hold a real estate license at the business - this is a fact that gets ignored time and time again.

Remember it takes time to make a good noi - (net operating income), it will not happen overnight.

If a property you purchase needs repairs, and or upkeep, make sure it gets done in a timely manner.

Stay in an area that has consistent renters - doubles are good investments in the right area, north buffalo is a good place for that, you can get something under 100k which should bring in at least 1k per month in rentals, that's at least, maybe more if the property is kept up well.

There are other areas that will demand a much higher rental, but those will cost you more, however when you sell them, you will be further ahead. Williamsville and East Amherst single family homes will get you at least $1500 per month, but taxes are higher ... much higher...

[Canerican]

What made you choose Buffalo?

If Buffalo had a Beta value like they calculate for stocks, we would probably 0.2, prices never change in good times or bad. Remember that! You can't lose so much, but you likely won't gain that much.

[JH6]

Originally Posted by Canerican

What made you choose Buffalo?

If Buffalo had a Beta value like they calculate for stocks, we would probably 0.2, prices never change in good times or bad. Remember that! You can't lose so much, but you likely won't gain that much.

Sorry, but it sounds like you aren't a real estate investor.

The suburbs of Buffalo have 2-3 family units that are dirt cheap, and the rents around here are VERY STRONG.

With an up kept property, you can pay the mortgage, and put the cash in your POCKET every month if you do it the right way.

I'm living in a 2 family in West Seneca, and the rent from the upper unit is 50 dollars shy of Paying the ENTIRE mortgage.

When I move out of it, it will cashflow 500-600 per month without batting an eye.

Buy 4-5 units like this, and that is a great way to supplement your income ($2000-$2500 per month)..

If only the TAXES weren't murder around here, it would be an even better situation for the investor..

The taxes on my West Seneca home are EQUAL to my mortgage payment on a monthly basis.

Its SICK..

[ocean2026]

I would buy something in Buffalo for the great architecture NOT for investment-especially if you don't have to be in Buffalo. Buffalo has super cute old buildings but ever since its population peaked in 1946 its been losing people. This means less demand for housing. Even worse are the huge taxes -several times what I would pay here in Texas and Texas is only average for property tax ( but no income tax).

Where I live - on the ocean -people keep moving and demand usually outstrips supply however right now because of people selling vacation homes its somewhat cheap. On the other hand almost every one of our "historic" houses wouldn't even be noticed on the average Buffalo street.