Has anyone worked with Buffalo Turnkey Properties?

Question

If so, what was your experience like? Looking to get into turnkey investing in WNY and this company looks pretty reputable!

Thomas Latuga · Answer

Never heard of them.  The first listing they have as of this morning shows "612 20th" which is Niagara Falls in a terrible part of the city.  It's renting for $600/mo per Zillow.  I wonder what their collection rate is for that neighborhood.  In the pictures they have listed I see white cover plates but still the old beige outlets.  Water heater is dated 2011.  I wouldn't call that turn key.  I call that lipstick on a pig.

Jordan Reisman · Answer

Thank you! That's a valuable input. It's interesting that even the Buffalonians or investors in WNY here haven't heard about Buffalo Turnkey. That is a little bit alarming. I was also looking at one of their properties at 21 Cobb Street in Tonawanda, it seems to have pretty good cash flow, but is that also a dicey part of town?

Matthew Irish-Jones · Answer

Jordan, what are you looking to do with your investing?  You can get "turn key" services from companies in Buffalo that you are not married to.  Buffalo is a good area to invest, but you need to watch out how much risk you are taking on.  Most of the risk in WNY is geographic or asset based.  You can be in a risky neighborhood, or you can buy a risky asset in a quality neighborhood.  The worst thing you can do is buy a risky asset in a risky neighborhood.  Last thing to watch out for is your variable expenses.  Buffalo has some of the oldest housing stock in the nation, so you really need to have an eye for asset condition.  The age of the home is not as important as the age of the major components of the home, the roof, plumbing system, electrical system, age of paint and other building materials that may have lead or asbestos, variable expenses can creep up and kill an investment.

Steven Goldman · Answer

@Jordan Reisman

Buffalo is one of those undervalued markets I write about in my comments.  I would make sure you perform careful due diligence in Western NY and even Erie, Pa. The prices are more reasonable but the economic situation in these areas is still imperfect. If you have solid tenants and the price you are paying conforms to the market, I would not hesitate to purchase in Buffalo or Erie.

Chris Clothier · Answer

Jordan,

I'm not familiar with the company, but the word Turnkey came up in my alerts.  I was just wondering, why do you say "this company looks pretty reputable"?  I'd love some insight into what it is you're seeing as an investor that leads you to that conclusion.  Im not asking because of good or bad, just wondering what you're seeing.

Has anyone worked with Buffalo Turnkey Properties?

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