All Forum Posts by: Ryan Walley

Yes, have a down payment.  I know many people say you can do no money down deals, but having some cash can always make your terms more attractive when buying.  

Think about what you want out of your investment.  Cash flow?  Appreciation?  Calls at all hours of the night?  Slow and steady growth?  Then find a good local pro (probably an agent) in your area and pick their brain.  Go out and see property.  Get dirty.  It will be ok!  

Any specific questions?

Ryan

Hey Michael,

I'm a broker/owner in the Northtowns and would love to discuss a flat fee structure. It's really about what the client needs and how much time and cost it will be to us. Most brokers way overcharge clients, even if the house does sell for over asking and within a week.  You have to add value, but if experienced sellers want a discount I'm always willing to negotiate.

Ryan

"Househacking" in Buffalo is definitely doable and a very common and successful way to start off.  Trust me - that's how I started in Buffalo myself.  10k will get you there in many good markets with some sellers concessions and a value-oriented mindset.  I believe it may be very difficult to buy non-owner occupied property with financing with that amount of start up cash.  But it's a great start nonetheless!

Hi James (and all),

New-ish to BP, but I've been following boards and would love to comment when I think I can add value to the conversation.  I own a few doubles and have managed properties in the past for clients (but don't anymore - not my specialty!).

First off, I would suggest sticking to Buffalo, as thats's where taxes are the lowest (as you mention - relatively speaking) and you'll find the biggest supply of doubles (I second Sam Tato in the supply remarks) and tenants.  Elmwood and North Buffalo are A+, but I would consider you also look at the Westside - from Baynes to Niagara, around Grant St which right now has the greatest growth in sales prices and resurgence.  There are lots of new businesses, immigrant families and young people moving there.  Prices are all over the board there; rents are too.  It's my #1 place to buy and live right now in Buffalo, even with the higher prices the past few years.  With a 20% down payment, most doubles should cover your mortgage.

To answer your general questions:

1. You should be able to net $500/mo cash flow on the Westside on a cash purchase.  Rents for a 3BR unit run $550-$750+ depending on condition.

2. Water and trash.  Water is typically $100/mo for a double and trash I believe about $25/mo.  And obviously repairs and management.

3. I often see small landlords write into their leases that the snow removal is the tenants' job.  Any fines are ultimately the owners responsibility, however. Give your tenant a bit of a break in rent to take ownership of it (and the lawn/weekly trash to curb too).  Just leave the maintenance to your professionals.

Good luck in Buffalo!  There are many neighborhoods, at different price points.  It all depends on your budget, skills, time to invest and risk tolerance.  My recent client wanted pure cash flow, so we found him a double in Niagara Falls for $19k that's fully rented grossing $11k /yr!

In my mind, absolutely.  

Here in Buffalo, NY, an easy example I like to use is $500/mo rent per unit in a 2-family home, purchased for $50,000.  Good returns, no doubt, but units are in rough shape. By investing $5-$15k per unit in the kitchen, bath, paint and fixtures almost always increases rents $100-300/mo.  And with increased rents, come increased caliber of tenants.  Those that have steady jobs, good credit, want to participate and be a part of the neighborhood and eventually buy a home. 

I had a really good year last year and splurged on my first new car - a black on black 2014 VW GLI with all the trim.

Awesome handling in the Buffalo snow, super fast on the highway and looks great too!  Yes I have a payment but it's under $300 as I saved and put a good chunk down (I own, NEVER lease!).  Prior I lived for years with a 1997 4runner with 170k miles (and it still runs!)

Here in WNY, the banks have an FHA addendum that states that if the appraisal comes in lower that the sales price that the buyers have the right to opt out of the sale of the home at no cost to them.

I just had an appraisal here in an up and coming area of Buffalo come in $50k below sale price. And it sold over asking price in multiple offers. The buyers really wanted the home, dropped their existing loan officer, reapplied, ordered another appraisal (luckily they didnt apply FHA originally) and the second came in perfect.

Get a good relationship with lenders. We've heard that before many times on this site.