Buffalo, New York

[Richard Boyd]

Hello Everyone, 

I just wanted to ask a some questions regarding Buffalo's market. 

1. Does anyone have some solid reliable realtors and brokers in the area that deal with multifamily? I'm asking because in a few months, I will be on the search for a tri/quadplex.

2. How difficult is it currently to get your hands on one of those properties in that area right now? This will be my primary residence as well. 

3. Are the individual units easy to rent out right now? Will I be looking at waiting to find a renter or are they pretty common?

4. What are some good areas for buying? My budget is at about or a little less than 300k with a VA loan.

5. What kind of market is the area in right now? It appears to be close to peak. I'm ignorant though. 

6. Should I even start investing here? I will have a partner, but what are the odds of me buying a quad every year?

7. Are there any other factors that I should be aware of? 

I'm asking all of this because I won't be living there until I purchase a place and I don't want my first one to become a mistake. I have read just about everything I could get my hands on and I'm ready to start investing. Also, I have read about people using their Roth 401k to invest with while paying little taxes; does anyone know more info on that? 

[David MacClintock]

I have family in Buffalo and Rochester and have seriously considered both markets.  Since you live in Buffalo, I have a few questions you may want to think about and answer before you invest in Buffalo. What areas of Buffalo do YOU want to live? What economic activity will be Buffalo's growth in the next 10 years? Where will that activity be centered? Are UB student rentals something you are considering and will UB continue to push toward being the flagship University in NY? Will "The Buffalo Billion" actually help long-term in the local economy? Have you identified areas that the Buffalo Billion plans to gentrify and browsed multifamily listings within two blocks?

Buffalo as a whole, being a fairly poor city, offers awesome rental opportunities. I am deterred by how management intensive they will be however. Most of the rental homes you will see are a minimum of 70 years old and will be huge single families converted into multi-units, just the same as the rest of the rust belt. They offer awesome cap rates but often come with high cap-ex. If you are an effective DIY and also know when to sub-out (foundation, roof, structural) you can develop a strategy to quickly add doors to your portfolio but be aware there will be nothing passive about managing these places. 

Edit: I guess I missed you do not live in Buffalo currently. The question should be have you explored what areas you want to live.