Multi-units in Buffalo, NY

[Account Closed]

My partner and I are hoping to move to Buffalo, NY within the next 3-5 months. We are eager to begin "house hacking" in a cheaper city (we currently live in Washington, DC) in order to save thousands in housing expenses each year. We want to focus on triplexes or quads that would provide enough rental income to cover the entire PITI of the property. We have some familiarity with Buffalo and understand that the best areas are in Elmwood Village and the northern edge of the city. That said, we'd like to consider properties in transitional neighborhoods that may be even less expensive and offer possibly appreciation. I know full well that appreciation is simply a bonus, but I do want to account for it.

Does anyone have a recommendation on a particular neighborhood that offers health cash flows margins in a pleasant area? 

Also, if anyone can recommend a "jack of all traders" realtor/broker who understand the investor mindset, that would be great.

Thanks!

[Ryan Walley]

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!