Buffalo,Rochester, NY and/or Columbus, OH BRRRR

Buffalo,Rochester, NY and/or Columbus, OH BRRRR

Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes

Hello BP community! I have been creeping this site for some time now and finally decided to bite the bullet and get started with an account here. I'm so glad I did. My husband and I have 2 rental properties in the GTA,ON, Canada. Though, after many years of being inundated with US flipping and property development shows I've been doing more and more research on buy and hold rental business and we'd like to take the next steps and explore this oppportunity. 

We've focused on Buffalo, Rochester and Columbus markets for a variety of factors but mainly due to proximity to CAN, purchase price for cash deals or using LOC, CAP Rate, steady rental markets for cash flow and ROI down the line. We're in the process to finalize details of our budget (will be $60K or less for distress properties where equity can be added), finding agents and the right professionals for taxes and property management. I know the US market is very different from that off CAN but it is getting more challenging to do deals in GTA area due to buying price vs rental target and lending restrictions. If anyone would be willing to share some feedback/advice/trends for these areas I'd be very grateful. Info like but not limited too, "good" neighbourhoods and ones to avoid, REI groups, resources, how to get a better understanding of crime rates, schools and family areas, how to manage out of town/state contractors, growth markets, landlord/tenant regulations.

Thank you in advance!

Stephanie

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Most Popular Reply

Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
6y

Plenty of inventory, the issue is property management, dont get this right and you go backwards

See this reply in the discussion

29 Replies

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  • Rental Property Investor · Buffalo, NY · Member since 2017 · 56 posts · 21 votes
    6y

    Hi Stephanie, welcome! - is your budget $60k total all in, or is that what you are looking to purchase for or is that your remodeling budget? I think you will have a hard time finding something in what would be considered a "good" neighborhood in that price range in Buffalo or Rochester. Prices in these areas have doubled in the past 5 years. Best of luck to you!

  • Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    Welcome to the site @Stephanie Niles! Columbus, OH is a great place to invest! 

  • Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
    6y

    Stephanie,

    I agree with Kyle for the most part. 60k is a tough budget for what you’re looking for. However, I live and invest in Black Rock. Here depending on your rehab budget, you could make it work. Especially with single fam properties. 

  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    6y
    Originally posted by @Stephanie Niles:

    Hello BP community! I have been creeping this site for some time now and finally decided to bite the bullet and get started with an account here. I'm so glad I did. My husband and I have 2 rental properties in the GTA,ON, Canada. Though, after many years of being inundated with US flipping and property development shows I've been doing more and more research on buy and hold rental business and we'd like to take the next steps and explore this oppportunity. 

    We've focused on Buffalo, Rochester and Columbus markets for a variety of factors but mainly due to proximity to CAN, purchase price for cash deals or using LOC, CAP Rate, steady rental markets for cash flow and ROI down the line. We're in the process to finalize details of our budget (will be $60K or less for distress properties where equity can be added), finding agents and the right professionals for taxes and property management. I know the US market is very different from that off CAN but it is getting more challenging to do deals in GTA area due to buying price vs rental target and lending restrictions. If anyone would be willing to share some feedback/advice/trends for these areas I'd be very grateful. Info like but not limited too, "good" neighbourhoods and ones to avoid, REI groups, resources, how to get a better understanding of crime rates, schools and family areas, how to manage out of town/state contractors, growth markets, landlord/tenant regulations.

    Thank you in advance!

    Stephanie

     There's plenty of these opportunities in Columbus. One of the key areas I'd look is in North Linden area and kind of surrounding. The target zips are 43224, 43211, 43219. I've personally done three flips in these areas and all sold in under 7 days. You are typically buying less than 50k and putting 20k into the properties. Most of the ones I've bought were very small and easy (under 600 sq ft) but there's still plenty of upside. It's funny, two of mine sold to investors out of state even at 90k so I think there is a really good market around there. Have you ever been to columbus? 

  • Member since 2018 · 1 post · 1 vote
    6y

    If you need help or financing in the Buffalo area Stephanie, I can help you I know the area very well!!!

  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    @Stephanie Niles welcome to BP Stephanie. There are local meet ups for the ROCHESTER and the Buffalo market for BP people. I’m sure there is one for Columbus as well.

    All three markets have some similarities. Make sure you understand the varying laws state by state.

    Irish Jones Realty4.947 Reviews
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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Stephanie Niles Have you looked at Franklinton in Columbus, OH? You can still find rehab properties in the budget and I believe the area will appreciate more than Linden, Hilltop or Whitehall.

  • Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes
    6y

    @Kyle A. Thank you for the insights! $60K is the budget to purchase we are hoping to save/loan cost for reno. To get a better understanding of different areas/neighbourhood, we are hoping to make some weekend trips across the border in the Spring to get a better understanding of what I see online. Scouting in person so to speak. 

    @Matthew Irish-Jones Thank you! I've notice a few groups listed under the Events section of BP. Any good? Do you have a recommendation? :)

    @Zeke Liston Thank you! I'm really hoping my hubby and I persevere and do this! 

    @Dwayne Devaughn Great and thanks. I will certainly keep this in mind. 

  • Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes
    6y

    @Khaled Morad Thank you for the feedback! I know with this budget it will be challenging for sure...from my research so far I know some markets/areas are very challenged/depressed and we are not in the market for a full on gut job...hopefully cosmetic reno only to add value and attract good tenants for the long term. I will certainly take you up on that DM offer soon. Thanks! :)

    @Robert Ellis Thank you for your insight,I really appreciate the info. No, I haven't been to Columbus but spent some time in Toledo/Cleveland over the years. North Linden has come up in my research as well as German Village and Clintonville. I'm going to be giving the zip codes you mentioned a closer look. Also really good to know it's an active market given your recent investments and client activity! Best of luck with your continued projects! 

  • Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes
    6y

    @Remington Lyman Thank you sir! I will take a look at this area more. I know once I'm working with an agent it will help to filter through the fluff and weed out more specific criteria...hopefully. It's pretty hard trying to narrow down specific areas of interest now, I feel like I have to get out there and really explore the areas in person to have a better understanding of the neighbourhoods. Looking forward to spring so I can make a few road trips. 

  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    6y
    Originally posted by @Stephanie Niles:

    @Khaled Morad Thank you for the feedback! I know with this budget it will be challenging for sure...from my research so far I know some markets/areas are very challenged/depressed and we are not in the market for a full on gut job...hopefully cosmetic reno only to add value and attract good tenants for the long term. I will certainly take you up on that DM offer soon. Thanks! :)

    @Robert Ellis Thank you for your insight,I really appreciate the info. No, I haven't been to Columbus but spent some time in Toledo/Cleveland over the years. North Linden has come up in my research as well as German Village and Clintonville. I'm going to be giving the zip codes you mentioned a closer look. Also really good to know it's an active market given your recent investments and client activity! Best of luck with your continued projects! 

    German Village and Clintonville are going to be $$$ (over $200 a square foot on average) with low inventory. You are competing with home owners. Definilty class A+++ for both but very competitive. I like North of Hudson St in Linden but it's all based on the comps. It's changed a lot in the last two years as inventory problems continue to be there 

  • Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
    6y

    Plenty of inventory, the issue is property management, dont get this right and you go backwards

  • Specialist · DETROIT · Member since 2019 · 116 posts · 243 votes
    6y

    So true about the property management, we are working with a few winners. One in particular specializes in Section 8 .. She’s so Amazing! Same goes for contractors for the flips. Without a good one , forget about it, it’s like walking in quicksand.

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Stephanie Niles Getting out here and checking out the area definitely helps! I do know some OOS investors that purchase properties without ever stepping foot in Columbus, Ohio. Regardless, setting up a solid team (Realtor, Property Manager, and General Contractor) is a must when OOS investing.

  • Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    6y
    Originally posted by @Stephanie Niles:

    Hello BP community! I have been creeping this site for some time now and finally decided to bite the bullet and get started with an account here. I'm so glad I did. My husband and I have 2 rental properties in the GTA,ON, Canada. Though, after many years of being inundated with US flipping and property development shows I've been doing more and more research on buy and hold rental business and we'd like to take the next steps and explore this oppportunity. 

    We've focused on Buffalo, Rochester and Columbus markets for a variety of factors but mainly due to proximity to CAN, purchase price for cash deals or using LOC, CAP Rate, steady rental markets for cash flow and ROI down the line. We're in the process to finalize details of our budget (will be $60K or less for distress properties where equity can be added), finding agents and the right professionals for taxes and property management. I know the US market is very different from that off CAN but it is getting more challenging to do deals in GTA area due to buying price vs rental target and lending restrictions. If anyone would be willing to share some feedback/advice/trends for these areas I'd be very grateful. Info like but not limited too, "good" neighbourhoods and ones to avoid, REI groups, resources, how to get a better understanding of crime rates, schools and family areas, how to manage out of town/state contractors, growth markets, landlord/tenant regulations.

    Thank you in advance!

    Stephanie

    I am from Toronto and have multis in both Buffalo and Columbus OH markets. PM me

  • Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes
    6y

    @Isaura Orellana Very true about the Detroit market and I have thought about it but for now I just narrowed down my areas to NY & OH....absolutely would consider Detroit area,MI especially with the growth happening there later on. We're hoping to get something going in the US  with a formula and strategy that works and replicate again and again! lol Also, what you mentioned is initially was I was hoping to look into Section 8 renting. Maybe I can DM you in the near future for more insight. Thanks for the feedback and recommends much appreciated! 

  • Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes
    6y

    @Hai Loc Great and thank you, I will very soon! 

  • Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes
    6y

    Wow, I'm so blow away by the feedback and responses! Much appreciated. :)

    Um quick question though...what are votes??? should I be voting for everyone who responds? are they like "likes" lol sorry I'm not sure.

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Stephanie Niles You should definitely be upvoting my posts

  • Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes
    6y

    got it! 

  • Rental Property Investor · Buffalo, NY · Member since 2017 · 56 posts · 21 votes
    6y
    Originally posted by @Remington Lyman:

    @Stephanie Niles You should definitely be upvoting my posts

     Thirsty?

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Kyle A. Hungry

  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    6y
    Originally posted by @Stephanie Niles:

    Wow, I'm so blow away by the feedback and responses! Much appreciated. :)

    Um quick question though...what are votes??? should I be voting for everyone who responds? are they like "likes" lol sorry I'm not sure.

    Its similar to a like but its more of a thanks/sign of appreciation for helpful information.

  • Property Manager / Licensed Realtor · Toledo/Columbus, OH · Member since 2019 · 244 posts · 262 votes
    6y

    @Stephanie Niles Hey there! I have experience in all of these markets and I will say the Midwest is definitely one of the highest turning cash flow markets that I have seen. I used to operate in seven different states including New York and currently in Ohio and I have seen a better cash flow and capital in Ohio than I have in the other states that I have worked in.

    Have you thought about looking at Cleveland or even Toledo? Right now Toledo is a pretty hot market for investors. If you want more information I would be more than happy to discuss the market with you.

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6y

    @Stephanie Niles: just be careful what & where you buy in Detroit. 

    We've seen too many investor buy supposed rehabbed turn-keys, only to find out they got burned when they hire us to manage them and we provide an Evaluation Video showing he true condition.

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