Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 7 years ago,
Help building Buffalo rental portfolio needed
Hello, after putting in a great deal of hours reading, attending local meetings, studying the market, ect. I have finally made the plunge and purchased my first Duplex. The property is located in the town of Cheektowaga , a suburb of Buffalo and is set to close next week. Both units contain 2beds/1bath and I have estimated the numbers as follows.
Flip
Purchase Price: $76,000 (cash)
Rehab budget: $15,000 (private loan)
After repair value: $135,000+
Rent (don't expect much appreciation)
Potential rental income: $19,200
County/school true tax: $4,190
Insurance: $815
Water/Sewer: $500
Management/ Repair/ capex/ vacancy: $5,760 (30%?? will be self managing/ property will have newer fixtures/roof)
Estimated NOI: $7,935
My goal for the time being is to get to 60k annual cash flow and I am having a hard time deterring what strategy would help get me there quickest. I will be basically tapped out of cash if I hold onto the property and was thinking the BRRRR strategy might be my best option considering the amount of equity I will have gained through rehabbing. However, I am now starting to question if i would be better off taking the proceeds from the sale and purchasing in less desirable neighborhoods (such as niagara falls or less developed sections of the westside) where rental returns appear to be more lucrative on paper. Any guidance you are able to offer would be greatly appreciated!