Property in Buffalo NY

[Landlord]

Does anybody own investment properties in Buffalo, New York?

The rental yield is quite attractive (around 15% net). However, these yields seem to be only in lower middle class/ working class areas. I've done some research and it looks like these areas in Buffalo aren't great, i.e. relatively high crime, low relative household income, etc... I am worried about the risk that the tenants in these areas will not be the ideal tenants, i.e. the tenants won't pay rent on time, they might trash the property, or that the property may remain empty for some time as no decent tenant would want to rent there.

Some of the areas I am talking about are: Grider, Genesse Moselle, Schiller Park, ...

Does anyone have any experience/ advice on the rental market in Buffalo? Any advice would be much appreciated.

 

[smparnel]

Buffalo is a very interesting market. The city and many of the surrounding areas contain some of the oldest housing stock in the country.

The number one owner of housing stock in Buffalo is HUD. Many of these properties are in horrible shape and have been passed around from buyer to buyer-to-buyer. Few years back, it was much, much more active but now it is settled down a bit. The point is to be cautious and do not buy sight unseen unless you know the property, neighborhood, street, and area of the city. You would be surprised how many transactions I saw from out of state investors buying $8000 - $20000 houses on Buffalo's up and coming East side that had no copper plumbing, wiring, doors, or windows.

 

[Gls]

I recently bought two properties in Buffalo. One in Grant Ferry and the other one in Emslie. Grant Ferry should be a descent neighbourhood but I am not so sure about Emslie. As the deal is so new I do not have any experiences how it will work out. The company who is in charge of property management is the AllanAllen (or AllanAllan?) company. They use both spellings(?). I will go to Buffalo in about 4-6 weeks to check it out more for my self and later I may buy more properties if I get the right impression.

 

[martinprop]

Does anybody own investment properties in Buffalo, New York?

The rental yield is quite attractive (around 15% net). However, these yields seem to be only in lower middle class/ working class areas. I've done some research and it looks like these areas in Buffalo aren't great, i.e. relatively high crime, low relative household income, etc... I am worried about the risk that the tenants in these areas will not be the ideal tenants, i.e. the tenants won't pay rent on time, they might trash the property, or that the property may remain empty for some time as no decent tenant would want to rent there.

Some of the areas I am talking about are: Grider, Genesse Moselle, Schiller Park, ...

Does anyone have any experience/ advice on the rental market in Buffalo? Any advice would be much appreciated.

Yes I have over 10 years experience in WNY property investments and good management is fundamental to any success made there.
Where have you bought?

 

[Gls]

Martinprop//

Have you heard of AllanAllan Company? A prop. management company in Buffalo.

What do you think about Grant Ferry and Emslie?

 

[martinprop]

Not heard of that company- be careful who manages as a lot of them will take your money. the two areas you mention are not very good in my opinion, I stick to east of Bailey, south buffalo, tonawanda to the north and cheektowaga to the east. Riverside also.

 

[martinprop]

if you have long term tenants with state subsidised rental income then that does make the management easier.
I dont want to scare you off as Buffalo still has some good yields although prices are on the up which brings down the yield of course. Consider Rochester NY or Michigan for future purchases.

 

[Ryan M]

A higher-end property is a much better investment in the long run. If you have the money, then put it towards a nicer property. This way your profits will only grow as the value increases each year, besides you will avoid all the possible challenges with the tenants in these areas of Buffalo.

 

[Landlord]

Yes I have over 10 years experience in WNY property investments and good management is fundamental to any success made there.
Where have you bought?

Thanks for your reply Martinprop!

I went to the US last week and spent 2 days in Buffalo. As I expected, it is not the greatest place on earth. Crime does seem quite high (I was told by my taxi driver, who himself was an ex-criminal, that Buffalo has the highest crime per capita in all the US! And to prove his point he pulled out a giant machete from under his seat to show me how he protects himself!),and the residents seem to be in a lower income bracket when compared to other areas in the US.

I still haven't bought in Buffalo and I went to see some potential properties. The main advantage in investing in Buffalo, as I see it, is the high yield! Also, the managing agent I met seemed very good. Apart from that, capital growth seems to be modest. Also, the houses I saw were very old (built in early 1900's, although fully refurbished) and the areas weren't great.

So I guess my question to you Martinprop is: why did you choose to invest in Buffalo? What are the advantages apart from strong yields? Also, what is your exit strategy?

 

[LucasAtwell]

I just did a quick search for you and found about 66 properties with at least 2 units in each - of course some of them would need to be weeded out - the listings go up to 50k, when i buyer lists, normally they dont expect to get the actual list price.

I must warn you however there has been a scam alert issued through craigs list on postings very similair, so if you dont get responses, that is why

 

[harnit2010]

Investment Property in Kaisertown

Hi Guys,
Hope all of you are doing well.

I am looking into properties in Kaisertown, NY. This will be my first investment property in Buffalo, NY. I am very much interested in the investment in this city. Do you think it is a good idea to buy a property in this part of Buffalo?

The property falls on Weiss St. I had a look at the property and it is in a very good condition. Do we get good tenants in this area though? How much are we looking at for the 2 unit property?

Highly appreciate your help & time.

Thank you!

Harnit