I wanted to ask all the experienced investors if they deal with any properties in Dayton, OH or Buffalo, NY. I have been researching the area and it seems that home ownership is very low and most people rent. Also the prices on some of the homes are extremely inexpensive. Going off of just looking at the property over the internet it seems like it could be a great deal. I see multi-family homes listed for 6k, 10K, etc. can have great potential for cash flow. What do you think about investing in those areas and do any of you own rental properties in that area. Also do you know of any good property managers in the area since I am not from there? What are things to consider when investing in those areas?
Your help and insight would be greatly appreciated.
No “real estate” pro here, but have done construction my whole life and am just starting to get into real estate rehabs, and investing, and having lived in a suburbs of Buffalo my whole life, i know and have looked over alot of the “cheap” buffalo housing you are talking about.
What i will tell you is, that most of those deals are very rough neighborhoods, meaning that your house is probably 1 of 7 or 8 on the whole street thats not burned, boarded or falling down.
Alot are cited to go to housing court with tons of violations so owners are trying to get rid of them vs face the city. The city has been under tons of public pressure lately to try and clean up neighborhoods, so if you purchase one of these, you will need to act quickly as they seem to have a 0 tolerance level lately and are demolishing and citing as many as they can.
Howdy-
I would not consider myself an expert, but I do own a four unit apt, and two SFR’s in Buffalo, and just sold another SFR that I had rehabbed (lost $ on that one tho’). Two of the SFR’s were purchased at the City tax sale, and one was purchased from a bank.
I would not buy property in Buffalo, or any city, without spending a least a little time in the area, learning the neighborhoods, and doing a LOT of research. I grew up in a suburb of Buffalo, although I have not lived in the area for 25 years. There are good streets and bad streets and areas that you should stay away from altogether.
Some research you can do remotely- get yourself a street map (you can order them online from the tourist bureau for a few bucks), and read the online edition of the Buffalo News every day. Note where the crimes are taking place, what is happening in the political climate and in the art community. Talk to a number of real estate agents- where are the areas people are moving out of? Where are they moving into? What areas are just staying stable? Check out the real estate section of the paper and get a feel for the market rents in the different areas. Look at the MLS listings online and start analying properties (www.realtor.com) in the areas you are interested in. Some of the broker’s sites show the rents the buildings bring in, so you can compare the asking price against the income and expenses to see if you can make any money. Don’t forget, it makes a big difference in Buffalo whether the tenant pays the heat or the landlord does!If you don’t live in the area, having a property manager nearby is vital.
Pick an area or two, come visit for a few days and have an agent show you around. You can make money in Buffalo- my 4 unit cost me $54,500, it appraised a year later for a re-fi at $72,00, and it grosses $21,000/yr. You just need to be careful!
Very well put Julia, i guess i should have added, also depends on what you want to do with the property. Rentals depending on the area you can get great deals, as long as you know its your ugly baby, as resale can be tough. South Buffalo for example, is priced in the area Julia spoke of hers ( 50-60’s ) and has moderate rents. The price range of 5-6 though as referenced in the first post, will get you pretty much what i described.
I have several clients in the Dayton area and their synopsis is very similar to the one that DavidN uses for the Buffalo area;
What i will tell you is, that most of those deals are very rough neighborhoods, meaning that your house is probably 1 of 7 or 8 on the whole street thats not burned, boarded or falling down.
Alot are cited to go to housing court with tons of violations so owners are trying to get rid of them vs face the city. The city has been under tons of public pressure lately to try and clean up neighborhoods, so if you purchase one of these, you will need to act quickly as they seem to have a 0 tolerance level lately and are demolishing and citing as many as they can.
There are great price “deals” but most of the neighborhood is abandoned or foreclosed upon. One of my clients had a deal with a wholesaler to buy 4 rental properties (they were currently being rented) in Dayton for 60 k. The Lender(s) had an extremely difficult time with the appraisals due to the vacancy and foreclosure issues in the area.
I mlive in dayton, right now the foreclosures r everywhere… My friends have been buying house for 10,000. now mind you these house usually need 10 to 20,000. the one hose again bought for 10 g is really nice structurally, but heres the thing they already have it sold for 90,000 by land contract. If you r serious we can talk i will be more than happy to assist you. i have 2 props, mange them myself and have been doing goo, But I have only been doing this two years, I can’t wait to pay 10,000 for a house…