All Forum Posts by: Dale Miller

 I don't believe it will happen until next summer, it might be sooner, but I doubt it. It takes a while for things to shake out. Tenants that are paying but not working have almost 10 months of unemployment, plus federal bonus money ($600/wk) and most won't bank any of it. They plan to just go back to their job when this is done, but a lot of jobs won't exist anymore. The federal government will more than likely extend the basic state benefits for 2 years like they did in 08, but I doubt they'll keep that additional $600 going. Once the extra money runs out people will stop paying rent and landlords will dump rentals as they can't afford to go through the eviction process in a lot of places because they bought for appreciation with almost no profit. So once again the federal government is screwing with the system and making it even worse, hang in there and it will settle out eventually for investors. 

@Dale Miller

Lack of pics is the first thing I thought of when reading your headline. And rental properties? Same thing.

@Dale Miller the highest demand is in the Elmwood Village and North Buffalo. That also comes with the highest sale prices.

Buffalo in general has very high rental demand and units do not sit vacant. As long as your properties are priced correctly and in good shape they will rent.

@Matthew Irish-Jones That is interesting Matthew! I will take note of that. I'm still trying to learn and hopefully view some properties! Thank you for your reply!

I'm also a newbie.  How do you find rental comps so quickly (5 minutes)? 

Depends how many units but assuming 4 you should be able to find rental comps in about 5 minutes which should be your initial gut check.  An in depth analysis from scratch is probably 20 - 30 minutes, but once you do that a few times some costs like insurance or management will become constants so once you get on a roll a single property should take maybe 5-10 minutes.

@Dale Miller My advice is definitely to connect with an agent that can secure off-market deals. Many of the best potential properties don't hit the MLS, and the ones that do are driven up in price or have already been passed over by people who know their numbers. Like David Green says, "Good deals aren't found, they are made" so, there is opportunity on the MLS but not as much as developing good off market leads.

@Dale Miller

I have experienced the same thing in my search, but you will find a gem among the rough I am sure of it. Just keep at it and running conservative numbers, especially right now as the economy contracts.

I am in the closing process on my first duplex in Lovejoy/Sloan area after searching for a year and setting savings away, which I plan to house hack. While house hacked, it should save me $450+ on living expenses. When both units are rented out when I move on, it should cash flow $250+ per door.

I wish you the best of luck in the search! I look forward to connecting on tonight’s Buffalo Zoom call. 

Re: Sellers Market. 

I predict that post Covid there will be some investors that will want to divest some of their real estate portfolio for diversification purposes. Also, the new NYS landlord / tenant laws  have not been in effect for a full year. I can see some of the less capable landlords that have bad tenant relations or own properties that have deferred maintenance wanting to get out of the game.  I would love to see a post Covid  market  that slightly favors investors.     

With this much government intervention, I don't think we'll hit bottom for a solid 11 months. There are too many programs inflating the market right now in various ways. *IF* they're not extended and there is only a 12 month max moratorium on foreclosures and unemployment assistance ($600/wk additional) isn't continued past the 39 weeks, it should be a rather quick crash. For that reason though, expect more government intervention to kick the can down the road further. It will happen, just a matter of patience. I would rather buy 10 buildings at the bottom over 12 months in a year or two and have them all appreciate than 1 or maybe 2 now and be under water and unable to use leverage to acquire more for a handful of years.