Investing in Buffalo and Niagara Falls

Real Estate Agent · Niagara Falls, NY · Member since 2020 · 4 posts · 0 votes

As more and more people are drawn to Buffalo, Niagara Falls is also impacted. Cap rates in Buffalo aren't as good as they used to be, (in most cases) due to the inflation of the market. Niagara Falls is currently undergoing developments that will help bring more jobs and people to the area. This is also attracting investors. Property value in Niagara Falls has increased over 70% since 2017 and I think that it isn't going to slow down with the rise of interest rates due to the influx of AirBnB investors completely rehabbing properties. I want to hear what other people think about this topic. What do you think?

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Steve Kiernan
Investor · Buffalo, NY · Member since 2021 · 10 posts · 2 votes
4y
I want to get excited about that very much! And at some point, there are few folks who are going to make a lot of money because of their patience and vision, which match what you're suggesting. That said, for as long as I can remember NF is one of those places where the spreadsheets look pretty good due to severely depressed prices, but I'm not (yet) convinced that it's on the upswing enough for small investors to win, and most investors I've spoken with continue to warn against the whole area. Who knows...I hope your vision is right - if it is, there's a tremendous upside.
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
4y
@Jayson Parker. We manage almost 100 units in NF. It’s our toughest market for management and for investors.
It was a viable market pre Covid if you had enough inventory in your portfolio to handle a delinquency or two. Since Covid hit the delinquency rate in the area overall has gone up significantly, so has the cost to investors to evict.
The key to NF is to get the right building and be able to load your own tenants. Pretty much all of
The issues we have are due to inherited tenants on purchases.
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Jayson ParkerPro Member
OP
Real Estate Agent · Niagara Falls, NY · Member since 2020 · 4 posts · 0 votes
4y
@Steve Kiernan I believe that there are a ton of properties in NF that could be BRRRR'd right now. Many people want to sell because of the inflated prices. There was just a house on Memorial Pkwy that sold for $200k in days. Last year I sold one on that same street for $187k and it's currently an AirBnB that's booked until the end of August or September (somewhere in that area). The developments downtown will only increase property value. I think that most of the wealth in Niagara Falls will be built through equity instead of rental income. Downtown Niagara Falls is slowly turning into West Side Buffalo.

@Matthew Irish-Jones we should do some more deals together. I have a bunch of buyers looking in NF and Buffalo for properties that make sense. But I hear you. It is difficult to find good tenants in Niagara Falls. I'm thinking that as more investors are coming into NF and rehabbing properties, the bad tenants will be pushed out. I'm hoping this will happen.
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
4y
Quote from @Jayson Parker:

@Steve Kiernan I believe that there are a ton of properties in NF that could be BRRRR'd right now. Many people want to sell because of the inflated prices. There was just a house on Memorial Pkwy that sold for $200k in days. Last year I sold one on that same street for $187k and it's currently an AirBnB that's booked until the end of August or September (somewhere in that area). The developments downtown will only increase property value. I think that most of the wealth in Niagara Falls will be built through equity instead of rental income. Downtown Niagara Falls is slowly turning into West Side Buffalo.

@Matthew Irish-Jones we should do some more deals together. I have a bunch of buyers looking in NF and Buffalo for properties that make sense. But I hear you. It is difficult to find good tenants in Niagara Falls. I'm thinking that as more investors are coming into NF and rehabbing properties, the bad tenants will be pushed out. I'm hoping this will happen.

Yes we should. We are up there providing professional property management services, as well as contracting services for investors but, the unpredictability has hurt the area. We have investors that would gladly buy, 50 units up there if there was not so much uncertainty. What the area really needs is more job growth, and eventually population growth. That would be a game changer.
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