Welcome To SingingPig.co.uk

I have a number of WNY properties, In Buffalo, 2 duplexes and one single unit. and in Rochester 1 duplex and 3 single units.

I have mixed experience and have learnt a lot. Your Property Manager is everything. There are 2 things which cost you dear.

1. Empty units.

On an empty unit you pay double the insurance, You continue to pay the local taxes. You pay a months rental to the PM when they find you a tenant. You are at risk.

2. repairs between tenants.

If you evict, they have not paid you and they trash the property. If they leave, they dont pay the rent and they trash the joint.

9 of the 10 rental units I have were bought with 'paying tenants' By the time I had evicted them all for non payment, refurbished the property and relet, I had taken on average a 6 month hit! The one property I bought vacant was let within 2 months and has been earning ever since. That 6 month void on 9 properties was a $30k hit! Through it now but it will be a while before I compensate for the hit.

Things you learn

1. out of the fantastic yield you have to pay

all local taxes

insurance

registration

lawn cutting

water bills

with duplexes - common electrics

repairs

maintenance

section 8 inspections and repairs

violations

management fees

new tenant fees

vandalism

Having said all that given a fair wind you could have a net yield of 10 - 15 %

mjc247:

Hi John,

 I'm looking at investing in Detroit at the moment where yields are similarly high with Section 8 tenants - I guess the area around Detroit/Wayne County resembles the one in Buffalo but on a larger scale.

Have you invested anywhere outside NY state?

What would you say are the main pitfalls of dealing with Section 8 tenants?

Also, do you know anyone who will lend less than $50,000 against a foreclosure property? At the moment, I can't find any finance on these properties.

Any input would be much appreciated. 

Thanks

If anyone is interested there is a sales pitch, sorry semniar, about investing in repossesed properties in Detroit. Its just off the M25/M40 junction on Wednesday. http://www.propertyhorizons.co.uk/usa_seminar.html

Regards,

Tim.

Hi everyone, new to the site.  Any thoughts on whether Buffalo represents a decent opportunity now?  Most of these posts seem from 2008  I was up in Buffalo recently and definitely seems depressed area but probably some good opportunities as well, particularly for Section 8 housing - nice rental covenant.  I am primarily yield focused although obviously capital gain is a good thing.  I am not keen on paying money to a property finder such as Brennan since these wholesalers seem to pass on their issues to other investors.  Also what does anyone think about somewhere like Baltimore as an option - outside the snow belt, similar economic issues but perhaps greater opportunity for growth?

Hi, new to this forum and would like to share my experience in buying in WNY and in particular Buffalo. 

If you resent paying a property finder do what I did, if you have the time;  get on a plane and go there, develop contacts you can trust, identify the areas that represent sound investment and avoid the rough neighbourhoods.  If you are not so inclined then relying on experience is vital.

Buffalo properties can be sourced at very high yields (@40%) and low prices (@$20k).  These are generally to be avoided as they will bring with them all the problems of rough neighbourhoods.

The absolute key to being successful in Buffalo is to have quality property mangement you can trust.  If my property manager would not manage a property then it is to be avoided.  I value my property management and a number of others who are involved in sourcing properties.  I concentrate on the better neighbourhoods with better tenants.  These properties are in the $45k-$70k range and are still coming out with a net yield of 15-20%.  I also look to properties where the owner will hold a mortgage.

If you buy cheap or unsighted you will have trouble, but if you go with experience and spend a little bit more then you will enjoy the happy investment experience I have had.

Check out: http://www.downshirepropertyinvestments.co.uk/