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Real Estate Investing in Buffalo, NY
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Real Estate Investing in Buffalo, NY

Ah the home of the Bills, wings, and Buffalo Wild Wings (oh wait, it's from Columbus/Atlanta..whatever). The point is folks, Buffalo, NY is a city we like here at Coffee Clozers. Why? Cash-flow.

Buffalo is ranked #4 on our list for cash-flow
Buffalo, NY is ranked #4 on our top cash-flowing cities list

Let's face it - a lot of highly cash-flowing cities are only cash-flowing because they suck and no one wants to live there. Whilst Buffalo may not quite be home to the Hanging Gardens of Babylon, it still has a number of amenities such as art museums, music festivals, and one of the world's best waterfalls. Winters may not be particularly appealing, but it's fairly safe (certainly when compared to the Detroits of this world), and it has something to appeal to most types of real estate investors. In this blog post we'll take you through some of the best neighborhoods for Buying-and-Holding (including House Hacks), Flipping, and Section 8 investing.

Let's get started.

Best Neighborhoods for Investment

  1. Black Rock Here we have our Yuppie area - a neighborhood that boasts a comprehensive range of amenities. This community is uniquely home to two large supermarkets, considerably enhancing its convenience factor. Notably, it houses the only Wegmans in town, a veritable haven for grocery shoppers who prefer quality and variety. The presence of these supermarkets not only provides residents with easy access to essential supplies but also contributes to the neighborhood's livability, making it an attractive option for real estate investment. The area is also home to several highly-rated restaurants, breweries, a bakery, and even a butcher. Due to its versatility, we like this area for a number of different strategies. First of all, its amenities and safety make it perfect for a house hack and/or a classic buy-and-hold investment if you can make the numbers work (and to be fair, we found a few that did). Similarly, those same characteristics make it great for a fix & flip if you can pick up a fixer-upper with strong ARV. It's one of the few areas we've been able to find that genuinely shows some strong cash-flow, several distressed off-market properties, and some fantastic appreciation. There's nothing really to say other than it's a fantastic area - don't sleep on it!
Investment Properties in Black Rock, Buffalo
Investment properties in Black Rock (20% down, 7.8% int.)
  1. Larkinville & First Ward These areas offer a different flavor compared to the yuppie Black Rock area, but they still hold promising opportunities for savvy real estate investors. They may not boast high-end supermarkets like Black Rock, but they compensate with an impressive array of breweries that turn the area into a vibrant hub for budding hipsters (who also need a nice pad to host their Mezcal collection). Larkinville and First Ward offer a number of investment strategies due to the affordable property prices and high potential for urban development. Whether you're considering buy-and-hold, house hacking, or even a fix & flip, don't overlook these neighborhoods. That said - do check any investment out in-person before buying since it can be quite different block-by-block here.
  2. West Side This area is another excellent choice for real estate investment, particularly if you subscribe to the classic notion of buying the worst house in the best neighborhood. As an area teeming with cultural diversity, vibrant local businesses, and beautiful historic homes, it offers a compelling blend of old-world charm and modern convenience. Although cash flow opportunities might be more challenging to locate on the MLS, don't let this deter you! There's always the potential for securing a good deal by opting for lowball offers or venturing off-market. With the right negotiation skills and a sharp eye for undervalued properties, the West Side could provide you with an investment opportunity that reaps rewarding returns.
Off Market properties on the West Side
Off-market properties in West Side
  1. ‍East Side The East-Side is understandably not as well-known as other neighborhoods in Buffalo. The area has higher crime rates than the previous areas we've discussed, but is also one of the most affordable communities in the city. By consequence, this district could be a goldmine for investors, particularly for those interested in Section 8 investing. Its lower property prices easily allow for high cash flow and yields (even with Section 8 below-market rent rates). So if you're an investor who's not afraid to take calculated risks and looking for a high return on investment, the East Side might just be the perfect place for you. If you find a good block and a great tenant - you'll be set!

Conclusion

In conclusion, investing in Buffalo's real estate market offers a relatively safe and profitable opportunity compared to other cash-flowing cities. Its close proximity to Niagara Falls adds a unique appeal, attracting tourists and potential renters. Whether you're interested in buy-and-hold investments for steady cash flow, flipping properties for quick returns, house hacking for cost-efficient living, or exploring Section 8 for guaranteed rental income, Buffalo offers diverse avenues to grow your investment portfolio. But remember, every investment comes with its own set of risks and rewards, and it's crucial to conduct due diligence to ensure the best outcomes. Happy investing in Buffalo!

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