Bffalo NY
Has anyone here invested in the Buffalo NY area lately and if so how is the rental market?
I have seen a few attractive deals in the area, which is some distance from my home. I am also looking for some reccomendations on realators/property managers in the area shoud I go forward.
All feed back greatly appreciated.
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Thank you very much for your reply.
All good points that I need to consider.
Not to pumped, given the fact that no one I left messages with has gotten back to me.
I own 6 properties in Buffalo and am doing very, very well. I have been very selective at tenant placement and I am very involved with my tenants and management of my properties. I also keep my properties very well maintained.
I work very closely with Section 8 and it all seems to be great. I have an eviction from time to time but the courts are VERY landlord friendly in Buffalo so you can have them out in 2 weeks.
It is very challenging to find good property managers in Buffalo. I have been very lucky and have hooked up with two guys that really are maitenance guys. They also show properties, etc. But I do the background checks and manage all the paperwork. I have all rent checks go directly to me (they occasionally personally collect rent that is late) and that is the way I like it.
Cash flow is great in Buffalo but you need to have a relator that understands that market. Not just some one that wants to sell you a property
One investor I know bought a beautiful home for $20K. He sold it for $40K. It was in a fantastic neighborhood. He found two sisters as tenants. One lives up and one lives down. They will be there forever.
Also, my maintenance has been extremely affordable. A repair that would cost $1000 here in CA is $200 there. It goes back to the $30K a year thing. But I only hire people I trust.
Hope this helps. If you want a GREAT realtor let me know. I have someone that I really, really trust and she is connected to my maintenance team.
I have used this program and would be happy to share information with interested folks.
Or 250.00, rather.
Though not all Agencies do, they should, if offering the unit-owners coverage, also offer to review the HOA policy to determine what is covered and how it may "play" with the unit-owner policy...
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Best regards,
Tim[ Edited by norrist on Date 12/07/2006 ]
Now search for "rents," and see what the area rents for. You will see that your "cheap properties" have rents that are also pretty low. Do the numbers work for you? If so, buy low!
MC
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I have found that often the rents are pretty decent in relation to the price of the property.
I would think that you could get a cash flow out of many of these.
I will look into the Syracuse market...but the lack of appreciation scares me.
I would like to find a good market where prices are still relatively low, but also steadily appreciating.
I have been looking for an area of the country to concentrate on, and the area that seems to make sense to me is the Southeast, particularly the Carolinas and Atlanta.
Chris, thats a very nice macro-economic view of the real estate market. I agree totally with the underlying need for a good local, blue or white collar, economic base to make real estate attractive.
Ive seen beautiful properties in montana for pennys on the dollar..the problem is trying to find someone with the money to rent it...buying a dump in the hood, to repair and sec 8, has 10x the earnings potential...but u dont want to live there
tbird56...
What you just said is exactly why I have not pursued these low end properties...
That was my sentiment, but I was hoping to hear something that would make these cheaper properties make sense.
That is my biggest concern...buying something that will turn out to be unmarketable.
lavonc,
what areas are your properties in and what price range are they in?
I would love to have cash flow properties like you have as long as they are not in a dying area.
rillytho...
Please shoot me an email describing the particulars of what you are doing.
Since I live down the freeway from you, I know what you mean about the California thing.
Yes, I agree with Rillytho. That is why I purchased in NY, TX & WA. We continue to look in the Reno area and have are starting to see some great opportunities show up there but you have to be very, very careful of the various areas (like any city).
Each of my TX & WA properties cash flows between 30% and 50% of my mortgage and my Spokane property cash flows 60%. I self manage Spokane but have a property manager for TX.
Cash flows 60%? After PITI, maintainance and repairs, vacancies, advertising, management costs?
Did you make a huge down payment or what???
You really have to share the story on this one with us!
Chris
[ Edited by ypochris on Date 12/07/2006 ]
I purchased all my properties in WA & TX with significant equity built in. My TX homes were purchased through an agent that specializes in forecloresures. One SFH house I bought was $90K but was appraised at $130K. My mortgage is $780 PITI and my rent is $1250. I pay a 10% management fee. My other TX property PITI is $395 and my rent is $800 with a 10% management fee.
My WA property I put 20% down and my PITI is $395 and my rent is $850 with no management fees as I manage this myself. I purchased it for $50K and it is now appraised at ~$105K. I also worked with an agent in Spokane that does a lot of foreclosures, however, the property I purchased was not a foreclosure but the owners lived in Iowa and took an incredibly low offer.
The only repairs I have had on my TX properties has been about $200 this year and they both have long-term tenants.
I just got new tenants in my WA property and put in new flooring at a cost of $2000. That has been my only repairs.
Check with one of the REIA-type groups listed here at TCI for referrals for Agents familiar with REI. Not necessarily "local" Agencies, but ones that know what REI is and how to work with carriers/insurers that still "play ball" in that market...
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Sorry, can you explain? Where do I find the REI groups?
Have you checked with the state dept. of insurance? They should have a list of insureres that you can contact.
Look at the menu at the top of the home page, or click this link:
http://www.thecreativeinvestor.com/commercial/Groups-index.html
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"Independent" or "captive", find one that understands REI...the carriers are only as good as their Agents...
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What kind of policy is it? Have you spoken with the Agency or Citizens?
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Check the Florida DOI/website...they should have a resources section to help...
Also, maybe a local REIA-type group could offer a referral or two of Agents versed in REI...
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Citizens is for Residential property insurance. If the property is titled to a business they will cancel you if they find out and sometimes they do check
I hold them in my name for ease of management, ease of insurance (hazard, umbrella), ease of getting a mortgage or LOC, it is just easier. Many people who have their rentals in an LLC still have the mortgage in their personal name. I believe that an LLC will not afford most investors any protection because at the end of the day they have comingled money, the mortgage is still in their personal name, etc.
I would rather have lots of insurance and have management easier, than have some complicated business set up that is likely to be picked apart when the pit bull mauls the baby.
Norrist
What kind of hazard and umbrella insurance do you get on your rentals?
Also, I have a mortgage and a Line of Credit (LOC) on al my rentals up to 80% or 90%. So my rentals are pretty leveraged. So in my personal name I have houses that are highly leveraged and 401K. Between my personal wealth (if you count only equity above the mortgages/LLC) and my LLC wealth, it is pretty evenly split. So does it matter if they sue the LLC or me personally?
Have you encountered Citizens 4 point inspection requirement. We just renovated several older (1940-50) and some not so old (1986) homes for a client. In all but one (a 1945) Citizen required a 4 point inspection.
Another client with a bunch of oldies and historicals did not get asked to do the inspection. Homes were in the same general area and same city. Can you say arbitrary.
No question...I caught her point early and pretty much segued right by it....her professionalism is definitely admirable. My biggest point that liability insurance, by itself, does not provide complete protection, either. There are just too many gaps. I think proper (her and your point exactly) entity selection and creation, with valid legal counsel, coupled with appropriate insurance is the foundation of any asset protection planning strategy...
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Well put...The only way to do things is the "right way"...there are really no shortcuts...
Plus, the right way, one time, sure beats the alternative(s)...
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Thanks guys and gals for your insight on asset protection.
While this property is in a Land Trust, which I am not the trustee, the beneficiary is an LLC, which I am the managing member. I did however personally sign for the mortgage. Brenda raised an interesting suggestion. Does this "comingled money" really blow a hole in an LLC and render it irrelavent for asset protection?
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I think your attorney should answer that one for you, for sure...to me, however, the mortgage and the ownership of the property really are 2 separate issues...
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Just went to a John Hyre seminar yesterday and he said that deed in LLC and mortgage in personal name should not be a problem. However, he continually stressed that the overall picture you present in court - are you a sleeze ball - is very important.
Also, hazard insurance in FL is a nightmare. I keep my rental properties in my personal name and can barely find insurance. I can not imagine trying to find insurance in an LLC or FL Land Trust. I do think however that Investors Property Insurance in Apopka does have a company that will write.
Good to know, Brenda...thanks...
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Best regards,
Tim[ Edited by norrist on Date 11/09/2006 ]
I have Citizens for Windstorm coverage (hurricane coverage/wind driven rain, etc.) on a 5 unit commercial property close to the beach. Another company for the liability. I was surprised by Citizens quote, not extremely high but not the cheapest rate either. One thing that got me was a required appraisal BEFORE the policy was approved; this set me back $800 and did not guarantee that they would approve it. Well they did,
.
Oh yeh, thank you Mother Nature for being kind to FL this past Hurricane season! I missed the big waves we usually get but welcomed the lack of named weather systems.
I have a friend with 13 units and he has 3 washer/3dryers. He pulls approx. $300 of coins out each month. He charges $1.50 for each wash and dry.
If you have gas available to you, I just came into possession of a double (stacked) coin operated dryer set. Whirlpool in very good condition. $600 for the pair. They cannot be unstacked and are setup for natural gas, but can be converted to LP. If interested, send me an email at my username at h0tmail. I can run them across the State to you.
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Have you tried calling one of the commercial laundry services? I just picked up a 30 unit in MO and the previous owner had a contract in place w/ Coinmach. They put in 3 new washers and dryers at no cost to the previous owner and the collections are split 50/50. They even paid her a bonus of like $1,400 for signing the contract w/ them. It looks like I will be continuing service w/ them. Nothing out of your pocket except for the utilities.
Not sure what they would offer for a 5 unit but its worth a call.
I have 2 4 unit buildings and share the washer dryer with both. I bought the units from Sears Property Management group on the web. Great and very helpful people. Cost me $900 for both and the return is about $900 the first year. (the more kids in the familys the more the use.) This is my second year and I should be closer to the $950 range. I only charge $1.00 for a dry and 1.25 for a wash.
I cannot not post a URL here but send me a message and I would be glad to give you the link to the Sears website.
Laudromats will sell you good washers and dryers at a fair price....or go to local auctions...or local repair shops sell them, too.
Why recieve 50/50 when you can pay about $500-$600, and keep all the profits. Just make sure the ones you buy arent complete junkers. Sometimes laundromats just upgrade their units, and sell the old ones...it is worth investigating! Good luck...
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