Investing in the real estate market in Buffalo & Western New York
Why Invest in Buffalo & Western New York
- Positive cash flow investments/high cap rate properties due to relatively low property values.
- Strong rental markets available
- Stable property values
- Reasonable tenants rights laws and no rent control.
How to succeed in a new market
- Understand the area where you are investing including
- a) Typical property values/rents
- b) Crime rates & the quality of tenants in that area
- c) Local laws, taxes and regulations
- Real estate agent that understands the rental market and can help you get the numbers you need to properly
- Property management company that you can trust.
- Understand what risk profile in your investments you are looking for.
Typical Target Properties
- Single family and duplex units in the City of Buffalo.
- Three to four unit properties in the North and South Towns. Typical Profile would be
- a) Property built between 1900 and 1950
- b) Mixed single family and rental area
- c) Relatively low tax rates compared to other parts of Western New York.
Examples of Successful Investments Made
- One, 4 unit property, and one, 3 unit property in the North Towns 3 years apart. Low risk area, Cap rate seen .13
- One, 4 unit property purchased in good area near medium risk area. Cap rate seen over 3 year period, .13
- One, 3 unit property purchase in medium risk area when market was down, with repairs needed. Ultimate cap rate, .25
- One, single family home purchased in high risk area when market prices were high, cap rate seen, .19
- One duplex purchased in low risk area, when market prices were high, cap rate seen, .09.
C&M Rental’s role in the marketplace
- Full service real estate agent focused on the rental market. Core capabilities include:
a) Estimating rents
b) Estimating repairs for properties being purchased
c) Calculating cap rates and ROI
- Property management company managing properties in the City of Buffalo, the North Towns, and the South Towns.
- Property owner in all three regions of Western New York.