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Someone Buy These Two and Make Them Beautiful Again

Normally I feature properties with substantially more glamor than this installment. You need a bit of vision to see the potential in these two raggedy storefront properties at 188 and 192 Grant Street.  They are for sale at the asking price of $150K each.  The owner will sell them as a package or individually.  Each has two apartments and a storefront for six total units.

The neighborhood is equally ragged but is seeing a noticeable resurgence.  The surrounding streets also compose the heart of Buffalo’s new refugee immigrant renaissance with much of the dense walkable urban fabric still intact.  That means there is great upside potential for Grant Street and this part of Buffalo.   With that necessary vision I talked about, the right owner can do a great service for Buffalo by bringing life back to these once charming buildings and perhaps can pocket a modest financial gain in the process.

Let’s look at the money. If you paid the $150K each asking price and invested an additional$75K into each building with a 20% down payment your monthly mortgage and interest would be $1,824 per month at 4.5% interest over 30 years.  Add in insurance, taxes, and a maintenance fund for a $2,6oo monthly outflow.

Lets assume that the newly renovated apartments take in a conservative $850 each per month for a monthly take of  $3,400.  Take off $100 for vacancies to give a gross monthly apartment rental income of $3,300. Storefronts can be tricky to keep rented so let’s be very conservative and say they gross just $500 a month total.  That brings our monthly gross income to $3,800.

$3,800 – $2,600 = $1,200 / month net or, a modest 14,400 income per year.  Another way to look at this is as an annual return of 18% on your 20% down payment plus the equity that your tenants are paying for.

Of course my math and assumptions could be wrong and I know the crack dealers, and blah blah blah.



Written by David Steele

David Steele

Architect ( a real one, not just the armchair type), author of "Buffalo, Architecture in the American Forgotten Land" ( ), lover of great spaces, hater of sprawl and waste,
advocate for a better way of doing things.

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