Rental Property Investor · Amherst, NY · Member since 2016 · 40 posts · 17 votes
I will be moving to Buffalo, NY this August and I am interested in purchasing a house in the Amherst, Williamsville, Clarence area close to University at Buffalo. I would be interested in getting a duplex in order to rent half of it or a property that needs renovation. Are there any good realtors and mortgage companies that I could rely on in this are? Please recommend.
Fyi...there are not a lot of duplexes in the areas mentioned. Check zillow, I don't think there are any for sale currently. Are you originally from the area? For those that don't know, UB has 2 campuses (not including downtown). There is very nice student housing at the North campus so those students don't typically look to rent duplexes anyhow. South campus is where they would rent but I doubt you would want to make that your primary residence (not that nice around there). You will want to come and investigate the area ahead of time with a realtor. Otherwise get a short term lease on an apt while you house hunt. The hot areas for renting are Elmwood, north buffalo, and Parkside but prices are through the roof currently. The market is nuts right now. Many houses sell the same day and for cash. Good luck!
@Kyle A. Indeed not so many duplexes. I know both South Campus and North Campus as I lived in Buffalo for 5 years. The market as I heard is pretty crazy right now so getting a short term lease might be the best choice. Any recommendation you might have on this?
You could rent from me! I have a nice 3 bed in South Buffalo :)
Your best bet might be a corporate rental that rents month to month. I wish I could be of more help there but check Craigslist.
Yes the market is nuts right now. Be ready to jump at something when it becomes available. If you want to go home and think it over and shop rates on mortgages then you are going to miss out. Have everything lined up so if you see a place you like then you can put the offer in on the spot. I had to pay cash on a place just to avoid a bidding war but it might work out because after I fix it up a bit it might appraise for more so I'm effectively doing a BRRRR without meaning to!
@Kyle A. It seems like everyone is looking for multifamily houses in Buffalo...do you think SFR could make sense since the demand for multis are so high. Also, how is the demand for rentals outside of UB students? I see you have a property in South Buffalo so I'm assuming your tenants are generally not students.
@George T. Good luck with your search. It is crazy hot in the Buffalo market. There was an open house for a duplex in Amherst. It was jam packed and a cash offer of over the listing price of $198k was accepted days later.
@Andrew C. I think investors are going to start looking into east side of Buffalo soon. Numbers don't make sense in areas like Amherst, Hertel Ave and Elmwood.
@Jonathan Twombly What's a newbie like us to do pending such a collapse. Isn't some calculated action/risk better than inaction?
@Shawn Pappas Definitely agree, Eastside has been on my radar, but it's even more important to do your due diligence and walk the specific neighborhood/street as block to block can be very different.
If you have dry powder and patience, wait for the collapse and buy cheap assets from the guys who couldn't wait and went belly up. No one gets rich buying at the top of the market. You get rich buying at the bottom of the market. As Warren Buffett says, "Be scared when others are greedy; be greedy when others are scared."
If you just cannot stay out of the markets now, then you must be very disciplined about protecting yourself.
1. Forget about appreciation for now. The bulk of the short-term appreciation has already happened. Put appreciation out of your mind. If a deal comes along, and the only way you can make money on it is for it to appreciate, don't touch it.
2. Focus like a laser on cash flow. A deal should be AT LEAST break even for you, including a reasonable allowance for vacancy and unexpected capital expenditures. That means that the rents, minus vacancy and capital expenditures exceed interest payments, insurance, taxes, and routine maintenance costs, preferably with some cushion (or margin of safety).
3. Be prepared to hold the property for a long time, so you can ride out the inevitable market swings. If you have a cash-flowing deal, then you can afford to keep holding the property while you are waiting for the market to rise again. If you can afford to wait long enough, then you will see appreciation. It won't be as much as if you wait for after the crash to buy, but it will still be something.
Here is the scenario to avoid at all costs: buying a property where the cash flow is not sufficient to meet all the expenses, using debt (a mortgage) to purchase it. If you do this, you will be financing the property out of pocket month to month to cover the expenses. If your tenant moves out, and you have even a month or two of vacancy, then you will really be hit hard by expenses until you can get a new tenant in. If the economy goes down between now and then, you might not even be able to get as much rent from the new tenant as from the old one. Then, if the property starts to go down in value, you are suddenly stuck supporting a property a property that's under water out of your pocket every month. The temptation to walk away and lose whatever is left of your equity will become overwhelming.
If you are contemplating any strategy, like flipping, that requires you to time the market, you must also be very careful, because the market can turn very suddenly, and you don't want to be stuck with a half-renovated house that you can't sell and that is producing no income to you to offset the construction and carrying costs. I'm not a flipper, but if I was, I would be looking for really light-touch deals that I could turn around in a few weeks, nothing more.
In sum, focus on current cash flow. It's the only thing that can protect you at the top of the market, and it provides an excellent metric for discipline: no cash flow = no deal.
i know of a great duplex going for sale and is pre market at this time. Upper/lower about 1500sqft each. 3/1. It's in amherst at border of wiĺiamsvillle and Amherst. PM me if you are interested. Lower unit has central air.
@Jonathan Twombly It just might be a sign of an impending RE apocalypse! The provider I worked with in Kansas City, MO said the market there is also very competitive...so it seems markets in the rust belt and Midwest are hot...maybe too hot.
@Shawn Pappas Some properties still seem to make sense in North Buffalo as in they cash flow. Amherst not as much mainly due to taxes. But I wouldn't want to buy at the peak even if there's okay cash flow if the prices completely drop or if vacancies become an issue. I will check out east side. How is the neighborhood? As in would you live there or only rent to tenants there?
i know of a great duplex going for sale and is pre market at this time. Upper/lower about 1500sqft each. 3/1. It's in amherst at border of wiĺiamsvillle and Amherst. PM me if you are interested. Lower unit has central air.
Robert, i sent you a request, i am interested in this double, can you get me the info please.