First time investor in Buffalo NY market

Member since 2021 · 5 posts · 1 vote

Hi all, I'm new to BP and considering buying my first investment property in Buffalo, NY. I'm a Buffalo native that has been living in NYC for the past three years so very familiar with the area and have family living there currently. I'm looking to buy a multi family that cash flows and has some appreciation potential, is the market still hot? Do you think it will keep going? What neighborhoods are people investing in these days, Blackrock? West Side? University Heights? Elmwood/Allentown prices are insane. Any insight, resources would be appreciated!

Much Thanks

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Adam Wigdorski

Rental Property Investor · NY · Member since 2017 · 132 posts · 90 votes

@Josh Klemenich

Welcome. I’ve been investing in Buffalo since 2013 and have 30 units. It’s going to be a wild ride with ups and downs but you have to remember something. Real Estate investing is not sexy but it’s long term stability as long as you manage it correctly and don’t get emotional. You get over bid you get over bid. Don’t go full tilt on the next one. Stick to the math and don’t invest want you can’t afford to lose or pull back in equity in the future. There are still plenty of cash flowing properties in Buffalo and the surrounding areas but you have to be surgical. One year I looked at over 100 houses before I received a signed contract. Be patient. Don’t over extend yourself. Don’t calculate cost based off you doing the work if you don’t have time to actually do it. If you don’t want calls and can’t do after hour service calls get a property manager. Any questions reach out. Good Luck

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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
5y
@Account Closed yes it is still hot...really hot. People are investing in all of those markets. Each market offers something different in the form of risk, return, and appreciation so it depends on each individual investors goals.
Overall Buffalo used to be a cash flow market. Now its very competitive and you have to weigh appreciation into your calculations.
Where the market is going... I wouldn't listen to many people on that... Who knows, invest for long term value and you should be ok.
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Chelsea Knapp
Rental Property Investor · Buffalo, NY · Member since 2020 · 26 posts · 18 votes
5y
@Josh Klemenich we live and invest in Buffalo. We have 2 Kenmore doubles, 1 North Buffalo double we house hack, and are closing on a West Side brrrr this week. West side prices seem to be shooting up in a big way so we had been looking for something that wasn't a complete gut. The place we found actually had no issues with the big ticket items ie roof, new windows, hvac, foundation, etc. but the interior is a complete eye sore. We had a current value and an ARV based on work scope done by a local appraisal company. Purchase price of $147k which is what it appraised for and ARV came back at 285k which worked out to $109 a square. I'm going into it planning on the west side coming with more risk than our current properties and that ARV depends on the appraiser that day, but that might give you an idea of what the west side could look like depending on the situation. We are in the position financially to take things in stride if they/when they go wrong and are learning along the way as well.
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Account Closed
OP
Member since 2021 · 5 posts · 1 vote
5y
Appreciate the info Matthew and Chelsea!
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Thomas SmithPro Member
South Buffalo, NY · Member since 2017 · 17 posts · 6 votes
5y
@Account Closed directly. He recently helped me purchase a duplex that is going to cashflow very well once it's fully stabilized. He has great insights and can help you think outside the box to find a deal that might be overlooked by the average investor.
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Account Closed
OP
Member since 2021 · 5 posts · 1 vote
5y
Thanks Thomas! Where in Buffalo did you buy?
0 Reply
Adam Wigdorski
Rental Property Investor · NY · Member since 2017 · 132 posts · 90 votes
5y
@Josh Klemenich
Welcome. I’ve been investing in Buffalo since 2013 and have 30 units. It’s going to be a wild ride with ups and downs but you have to remember something. Real Estate investing is not sexy but it’s long term stability as long as you manage it correctly and don’t get emotional. You get over bid you get over bid. Don’t go full tilt on the next one. Stick to the math and don’t invest want you can’t afford to lose or pull back in equity in the future. There are still plenty of cash flowing properties in Buffalo and the surrounding areas but you have to be surgical. One year I looked at over 100 houses before I received a signed contract. Be patient. Don’t over extend yourself. Don’t calculate cost based off you doing the work if you don’t have time to actually do it. If you don’t want calls and can’t do after hour service calls get a property manager. Any questions reach out. Good Luck
4 Reply
Thomas SmithPro Member
South Buffalo, NY · Member since 2017 · 17 posts · 6 votes
5y
Originally posted by @Account Closed:
Thanks Thomas! Where in Buffalo did you buy?

My most recent purchase was a double in South Buffalo near South Park high school. Our first purchase was a double in North Buffalo which we currently house hack.

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Timothy Smith
Investor · Buffalo, NY · Member since 2019 · 160 posts · 112 votes
5y
@Account Closed good morning and welcome to our corner of the state! There are some great people and resources here. The market is insane right now and hopefully you are prepared to do some rehab work. Even the dumpy duplexes that need $50-100k or more are going high. Find yourself a knowledgeable and responsible contractor and go from there. Some of our toughest growing pains were in that arena, and I anticipate will continue as we grow! Best wishes and hope to meet up sometime.
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