Buffalo eviction & DSCR lender suggestion

[Anupam Banerjee]

Hi all,

I am new to bigger pockets. I am looking to buy my first investment duplex in Buffalo, NY. Each floor has is a 3bd/1ba unit (separate entrance). The house currently has 2 long-term tenants (one on each floor), but they pay way lower than market rate (750+700=1450 in total). The house is opposite a university, and some asking around suggests that the rooms go for ~400/month. Two questions for my brethren here:

1. Any watch-outs in buying a property with long-term tenants. How has the experience been with evictions in Buffalo, NY?

2. A good DSCR lender that you may suggest - I am assuming they don't have to be in-state?

Thank you, and looking forward to learning a lot here from all of you :)

Anu

[Matthew Irish-Jones]

Quote from @Anupam Banerjee:

Hi all,

I am new to bigger pockets. I am looking to buy my first investment duplex in Buffalo, NY. Each floor has is a 3bd/1ba unit (separate entrance). The house currently has 2 long-term tenants (one on each floor), but they pay way lower than market rate (750+700=1450 in total). The house is opposite a university, and some asking around suggests that the rooms go for ~400/month. Two questions for my brethren here:

1. Any watch-outs in buying a property with long-term tenants. How has the experience been with evictions in Buffalo, NY?

2. A good DSCR lender that you may suggest - I am assuming they don't have to be in-state?

Thank you, and looking forward to learning a lot here from all of you :)

Anu

 Room rentals are tough to maintain and tough to scale.  The university rentals are also hard to judge from an outsider perspective.  If you go one street over you are outside if where students will rent.

If you are just starting to consider buying in Buffalo, we have found the most success in B class areas targeting a 5-8% cash on cash return.  They are predictable, vacancy rates are low, and delinquency is low.  The eviction process is long and expensive, you want to avoid it if possible.

As far as the specific property and its viability as an investment, you need hard data and comps. An investor focused agent can run projections on maintenance, CapEx, and show you rental comps.

WNY can be a great place to invest, it can also be a great place to lose money if you don't properly quantify risk.