Is Investing In Buffalo, NY A Good Idea?

Question

Hey guys! I'm a new investor in the real estate game and am looking at the Buffalo market to purchase my first home. I went to school at UB for 4 years and definitely see potential for growth.

To be more specific, I am looking for a multi-family unit. I was wondering what you guys think of investing in the overall Buffalo area, in particular, around the college campuses? Do you guys think the market will continue to grow, does it make sense, etc?

Appreciate all responses guy, thank you in advance!

Matthew Irish-Jones · Answer

@Hnu Thaper it’s been a great market to invest for the last 10 years.

There are a lot of up and coming micro markets, good cash flow, and affordable entry prices.

Timothy Smith · Answer

Great place if you are smart about neighborhood selection and feel confident with your contractors. Lots of old buildings that need maintenance so be aware of that at the outset! We’ve been successful here for the past 4 years, but we also live close to our properties. Khaled and Matt above are excellent resources, and upstanding guys.

My main caution at the moment is to get up-to-speed on NYS laws and be wary of purchasing occupied properties without verifiable pro forma.

Khaled Morad · Answer

I’d be glad to help. I house hacked in Buffalo for years. Buffalo is a great place for rent/purchase ratio. In other words you can often purchase for the price of renting which works well for cash flow once you are renting other units out.

Matthew Irish-Jones · Answer

@Umang Govind single family market is red hot. Multi is also moving fast but is slightly behind the single family market as far as demand goes.

DM me and I can send you some internal data on neighborhoods and what neighborhoods we like at this point.

Umang G. · Answer

@Matthew Irish-Jones that’s good to know. Are SF more in demand of MFH? What are the demographics of the renters - students mainly?

Matthew Irish-Jones · Answer

@Umang Govind. Cash on cash returns are 4-7% in A class areas. 8-12% in B and 12-25% in C/D areas.

The 25% returns look great on paper but they are high risk properties that can come with a lot of issues.

Buffalo can be a great place to invest if you get a good property with sounds mechanicals in a good area.

Umang G. · Answer

I went to school in Buffalo back in the day, so curious to hear what returns you can expect and what neighborhoods are attractive from a rental investment perspective?

Hnu Thaper · Answer

Definitely appreciate the responses guys, thank you!

Tony Angelos · Answer

@Hnu Thaper can't speak for buffalo specifically, but deals are not macro level things. Any deal has a right price so if you're going into with good math, you'll be okay.

Is Investing In Buffalo, NY A Good Idea?

Is Investing In Buffalo, NY A Good Idea?

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