Did you ever wonder where the best buy and hold market is in the United States of America? Is it New York City? Los Angles? Philadelphia? Well it is none of those (Leaving the obvious aside in which you find a crazy good deal that some lunatic sells you!) The best buy and hold market i have ever laid eyes upon is in Buffalo, NY. I know this may seem crazy to people, especially those that have not went out to Buffalo, but that is one of the hottest markets i have personally seen in my entire life. In this post i will explain why it is a hot buy and hold market compared to the rest.
Now the reason to why i said Buffalo, NY is that when i started to look for my first investment property, i was actually looking in NYC. Since i live in Brooklyn, i thought i would be able to find myself a really good deal here in which i could get some good rental income. Now don’t get me wrong, there are really good deals here, the only problem is that the prices for these houses have sky rocketed! A newbie such as myself wouldn’t be able to purchase a property without getting a mortgage or a loan in NYC. On top of that, the risks are immensely high. So many factors kick in such as, me loosing my job, the tenant not paying rent, so i have to wait about 6 months to evict them, major construction costs, etc. These were just the beginning.
While i was still prying in NYC, i received a tip from my mothers friend. She told me to look towards WNY, more specifically, Buffalo. I had heard a few things about upstate NY in general, but they were usually overshadowed with high tax rates which just didn’t make the investment worthwhile. But when i started to look deeper into Buffalo, i found out a lot of neighborhoods had extremely cheap Tax rates. When i say cheap i mean cheap. The rates were anywhere from $800-1,200 a year. I explained the rates in details in my post My First Buy And Hold Property in Buffalo, NY a bit more so you can read up on that and get some more insights. Aside from me putting the numbers here again, my ROI for my first property is over 30% a year. Now if that isn’t a good deal i don’t know what is!
Now these are my own personal numbers, i have met people who have had higher and lower within this same market, but everyone was making a lot of cash flow. These deals also have to be looked at very carefully and purchased with extreme caution. Buffalo is a very weird market because everyone will try to scam you if possible. Even with the houses. I always stress it that you should find yourself a realtor who is also an investor and would look out for you, because this market will swallow you whole if you are not careful.
This is one of my main reasons to why i claim Buffalo to be the best buy and hold market in the country. The returns are amazing compared to the other big markets such as NYC in which the returns are 10%. Yes they may be bigger in terms of cash flow, but the percentage is still small. The only downside is that appreciation does not happen much in buffalo so you cannot claim it will rise such as other hot markets (NYC, LA, etc).
These were my reasons to why i believe Buffalo, NY to be a great buy and hold market. I will post many more blog posts about my other houses i have purchased which will strengthen my claim even more. If you have any questions you guys can always leave a comment and ask me and i will be sure to let you know!