Buffalo has a mix of several types of multi-family investment properties ripe for financial opportunities.
The most common type of multifamily property and one seen in large and medium-size communities around the world is the multistoried, modern apartment building. Buffalo has plenty of those. But it also has a huge inventory of 2-10+ unit multi-family buildings. Any rental property with more than 5 units is considered commercial real estate.
Smaller multi-family real estate is perfect for investors, both well-seasoned with a large portfolio and new investors just starting out. The initial cost of an apartment complex will be higher because you are dealing with a larger building and multiple units instead of a single-family home, but your cash flow will be greater when the property is fully rented out. When a five-unit building has one vacancy, and the other four tenants are paying their rent you still have cash flow. If a tenant moves out of a single-family home, it is 100% vacant and non-income producing until a new tenant moves in.
Rental properties are a good source of cash flow and real estate appreciation plus tax deductions for expenses.
One of the advantages of buying a multi-family building is access to better financing opportunities. In addition, a building with more rental units can help to grow a portfolio quicker: buying one building with five units versus buying five separate single-family homes.
I was speaking to an investor with a large portfolio of single-family homes. He has decided to sell several of the homes to purchase one multi-family building. His reasoning is there is one negotiation, one inspection, one loan, less commuting between properties to check on each building, there is just one roof to maintain, one water bill, one tax bill, etc. Instead of multiple ‘everything’ to deal with, he has just one. This will save him time and energy which he appreciates.
Multi-family buildings have more focused issues for a property manager or owner to deal with than single-family homes. Several families can be affected when something goes wrong at a building, such as having a single boiler for the heat that is not working. It is important to have ready maintenance personnel who can get to the property quickly and efficiently to get the building up and running again.
What Stonewall Property Management Can Do for You
Stonewall Property Management is in the Top Ten Best Property Management Companies in the Buffalo suburbs. We have been managing both multi and single-family properties for several years. We know the rental market, the neighborhoods, the processes to get property cash flowing quickly and smoothly. We also have access to turnkey rental properties for sale to help you get started.