All Forum Posts by: Andrew Carducci

Hi Rachel,

You should check out this article, there has been a lot of activity in the hotel industry in Buffalo in the past few years http://buffalonews.com/2017/02/16/hotels-prospectu... downtown is still over the national occupancy rate despite all the new rooms that have come online 

Hi Calvin,

If you focus on students the area around UB south should be a strong market for a few reasons.

1. Tuition is now free for SUNY schools for NYS students who have parents that make less than around 100k.

2. UB is the biggest school in the SUNY system.

3. UB just opened a large medical school downtown which is on the subway line with the UB South (University Heights area)

4. The Canisius College area is another nice area since it's close to Canisius and on the same subway line as UB South and UB Medical school 

5. The margins for student housing in Buffalo are quite nice around 300-350 per room per month for modest conditions. 

Any questions let me know

Andrew 

Wow nicely done! Was this in the Southern Tier or will Cattaraugus County Bank do deals in southern Erie County?

Hi Raylan,

Welcome to Buffalo! Your assessment so far sounds spot on. It's getting a little bit tighter getting BRRRR deals off the MLS but they're there if you look for them. Auctions and foreclosures are still a good source. If you have any questions on specific neighborhoods let me know and best of luck!

Best,

Andrew 

Hi All,

I just looked at a property in Buffalo, NY. I like the property a lot and the numbers are what I'm looking for but in the photo is what worries me.  These steps are the only access to a 2nd floor small 300-ish sqft apartment. The steps are solid and current tenant has lived here for 25 years and wants to stay and has no complaints but to me these steps look like a huge liability. Does anyone have any experience with these? The upstairs is rented for 250 per month (I think it's a fair price based on condition, layout, and size) and I'm considering making covered stairs but that will cost a few grand and take some time to recover. 

What could I do to reduce my liability as this is Buffalo and the steps will get snowy, icy, and wet? The building is currently insured and occupied so someone is willing to insure it as is. 

What can I do to the existing structure physically or in a contract to reduce liability?

Should I just build covered stairs?

Thanks a lot in advance for the help!

Andrew 

Hi A'mory,

Start out reading some books. A very good introduction is a book by Bigger Pockets called: The Book on Rental Property Investing

This is a good introduction that will get you moving in the right direction and you can start to focus in on more education in the area you're most comfortable.

Best of luck!

Andrew 

Hi Ed,

Buy J Scott's book "The Book on Flipping Houses". That is a good intro that will get you pointed in the right direction.  That book has a whole chapter on financing that will be beneficial info for you as well. He also has a book on estimating rehab costs which could be valuable to you as well. 

Good luck!

Andrew 

Hi Alek,

I did my MBA with a concentration in Finance.  I don't think that that concentration or any other would 100% carry over to working in real estate (other than real estate).  But if I had to pick one, I'd say Accounting or Finance would be the best because they will help you analyze deals. You'll learn the basics of Accounting and Finance no matter what concentration you choose so unless you're overly passionate about either topic, choose the path that you will enjoy most or will most benefit you W2 job. 

Getting my MBA was a huge benefit for me, I strongly encourage everyone to get one who has the means and interest. 

Best of luck! 

Andrew 

Hi Pauline,

Also consider something a little closer to home.  Allentown, PA and Easton, PA are less than 100 miles from Manhattan.  These areas are similar to the Midwest in that they have modest home prices and high cash flows.  It might be easier to manage a first property that's a quick trip in the car rather than a plane ride, even if you plan to use a property manager.

Best of luck! 

Andrew 

Hi Thomas,

While this appears to be a continuing trend the biggest issues with condos and town homes are the associations.  You never know when a special assessment will come up that may wipe out a year or more of cash flow.  I've only ever rented condos in Toronto, Canada but I know there it was not common practice to bill the tenant for special assessments. I've heard of a bigger pockets member that owned apartment buildings and also directed the association that managed the grounds.  That's one way to go around it! 

I personally would shy away from condos but I'm sure there is money to be made if done properly.

Best of luck!

Andrew