Buffalo vs Southern Maine Investment plan

[Joel Gulstrom]

Good Morning,

Was hoping to start connecting with some investors in the Buffalo area. I live in Maine, but I have two siblings who live in Owego, NY, and another who lives in Ashford Hollow, and my parents recently bought a place in Springville and will be moving there when they retire in the next year or so. I also have a bunch of relatives out in the Canton Ohio area. (3-4 hours Southwest of Buffalo)

I currently live in Southern Maine, but with so much of my family moving to NY I’m guessing in the next 5 years we will end up out there too. I’m a mechanical engineer and project manager and have a solid job here in Maine, but like so many folks I’m looking to get out from the 9-5. I run a small machine shop, lawn care business, and last fall I got my real estate license and work under Keller Williams. I own my house outright but have no other rentals at this time, but intend to use the real estate license to help me understand my area better and would like to start putting together some cashflow from rental property.

One question I’ve been mulling over is should I be buying rentals in Maine or in around Ashford hollow/Springville . Love to hear some insights on what sort of real estate investments are working well there. Prices seem depressed compared to Maine. (Fairly difficult to find anything under $150K that doesn’t need rehab even as you get in the rural areas.) Things get very expensive as you move towards Portland. Just showed a duplex on Saturday and there were other agents scheduled as well for additional showings. Built in 2005 Rents $1100 per side. Asking $325K. I just don’t see how the numbers make sense at all on something like that.

On the other hand my sister has been sending me listings from the Buffalo area with under prices under 50K and rents that make the numbers work. Pretty sure I can plan on zero appreciation in the Buffalo market though. I think some of the folks in Maine are making a bet on appreciation.

Anyway wondered what your thoughts were on starting to buy a couple rentals in that market and I also wondered if you had an recommendations for property managers in the area and contractors?

The big question is should I be looking harder where I think we will ultimately end up or should I just be present and get a few under my belt here where I don't have as much long distance heartache and where I have a support network?

I really don't know what I "want" when it comes to property. SFR, MRF, Commercial all sound pretty ok to me. I understand the advantages of the MFR, but I'm interested to know if SFR tend to attract a better clientel than the MFR's in this lower Buffalo area?

Thanks for taking the time to read my post.