Buffalo, NY - Elmwood Village bubble?

[Jon Lilley]

I‘m wondering how investors in the Buffalo, NY market are viewing the Elmwood Village/ Allentown and North Buffalo areas as long term holds at this stage. I’ve had some rental properties in the city for awhile now, and since some neighborhoods have been reassessed, taxes have gone WAY up. I’m thinking those Increases, coupled with the rising interest rates, may push the long run at appreciation towards it’s end. At least for awhile. I struggle with whether I should take some money off the table and sell off some properties, reinvest in other areas that cash flow with some more room to grow on the apprecIation side, or just play the long game and ride it out. The tax implications are obviously a huge concern if I were to sell.

[Nicholas Aiola]

@Jon Lilley Ah, I see. A partial 1031 exchange is an option, as well. You can reinvest a portion of the proceeds and pay CG tax on the boot. That would lessen the blow a bit.

Seller financing may also interest you - you can hold a note upon the sale and spread out the CG tax hit by reporting the gain in installments when payments are received.