Buffalo has one of the oldest housing stocks of any big city in the country, and that is both the opportunity and the risk for flippers. Houses that look like bargains often hide a century of patched wiring, old plumbing and water in the basement. Flippers who budget for that, and time the work around the weather, do well here.
In short: LendingStreet finances fix and flip projects on 1-8 unit investment properties in Buffalo and across Erie and Niagara counties, from $150,000 to $5M+. Some programs fund up to 90% of total cost and up to 100% of the rehab budget, and loans can close in as little as 10 days. Terms are short and interest-only, and the exit is a sale or a refinance into a DSCR loan if you hold the property.
Whether it is a South Buffalo single-family, a North Buffalo double or a West Side cottage, the same list comes up again and again.
This example is illustrative and not a quote. An investor buys a South Buffalo single-family for $155,000 and plans an $85,000 rehab covering electrical, a new furnace, kitchen, bath, windows and exterior work. Total cost is $240,000. Recent sales of renovated homes nearby support an after-repair value of about $325,000.
At 90% of total cost the loan is $216,000, and the investor brings about $24,000 plus closing costs. Rehab funds are released in draws. Over a 6-month project, estimated interest is about $11,880 and taxes and insurance about $2,700. After about $19,500 in selling costs and $4,650 in purchase costs, the estimated profit is about $46,270.
| Line item | Amount |
|---|---|
| Purchase price | $155,000 |
| Rehab budget | $85,000 |
| Total cost | $240,000 |
| Loan at 90% of cost | $216,000 |
| Investor cash before closing costs | $24,000 |
| Estimated interest, 6 months | $11,880 |
| Taxes and insurance during the project | $2,700 |
| Selling costs | $19,500 |
| Estimated profit at $325,000 ARV | $46,270 |
Our fix and flip loans start at $150,000, and in Buffalo that shapes which projects fit. A $60,000 house with a $40,000 rehab is too small. Projects that fit well are larger rehabs, doubles and three- to eight-unit buildings, homes in higher-priced areas like North Buffalo, Elmwood, Amherst and Kenmore, and investors financing more than one project.
If your project is close to the minimum, a larger rehab scope that adds real value, such as finishing a third floor or adding a bathroom, can sometimes push both the loan and the ARV into a better range.
Buffalo's building season shapes the schedule. Exterior work like roofs, siding, porches and masonry is easiest from spring through fall, and lake-effect storms can shut down a job site for days in winter. Many flippers buy in late summer or fall, close up the exterior before the snow, then do interior work through the winter and list in spring when buyers are most active.
Interest accrues every month the project runs, so a realistic schedule is part of a realistic budget. Factor in time for permits, inspections and the occasional storm.
Winter also affects a vacant house. Keep the heat on and the water lines protected while work is underway, since a burst pipe in January can undo weeks of progress. Your builder's risk or vacant-property insurance should cover the project period.
Electrical, plumbing, structural and many mechanical changes in the city need permits and inspections through Buffalo's permit and inspection office. The suburbs each run their own building departments. Draw releases follow progress, so slow inspections can stretch your timeline.
If you plan to rent the property instead of selling it, the city's rental registration and inspection requirements apply, and lead-safe work practices are required when disturbing paint in pre-1978 housing.
Buffalo's neighborhoods can change block by block. A renovated double on a strong North Buffalo street can sell for much more than a similar one a few blocks away. Pull sales of the same property type, renovated to a similar level, within a tight radius and from the last several months. Spring sales tend to set the high end of the year.
Buyers in the metro include owner-occupants and investors, many from out of state. A renovated double with signed leases can appeal to investors who value it on rent, while a single-family with a finished kitchen and updated systems appeals to first-time buyers.
Suburban flips follow different comps. In Kenmore, Tonawanda, Cheektowaga and West Seneca, buyers compare your house to other updated capes, bungalows and ranches in the same school district, and finishes that fit the neighborhood matter more than high-end upgrades.
Many Buffalo flips become rentals, because the rent on a well-renovated double often covers a DSCR payment comfortably. If the finished property leases for enough, you can refinance into a 30-year DSCR loan instead of paying selling costs.
| Exit | Fits best | Watch for |
|---|---|---|
| Sell to an owner-occupant | Single-families and doubles in owner-heavy areas | Closed permits and clean inspections |
| Sell to an investor | Leased doubles and small multis | A documented rent roll |
| Refinance into a DSCR loan | Properties with rent that covers the payment at 1.0x or better | The $150,000 loan minimum and rental registration |
You need a 620 minimum credit score, cash for your share of the cost and reserves, and typically an LLC. Experience helps leverage, and first-time flippers are considered with a solid budget and contractor. Add a contingency of 10% to 15% to cover what turns up once walls and floors are opened, which in Buffalo is often more than expected.
Send the address, price, rehab budget and ARV comps through the form below, or call (877) 298-1001. We will come back with leverage, draw structure and timing.
Some programs fund up to 90% of total cost and up to 100% of the rehab budget, depending on experience and the deal.
$150,000. Very low-cost Buffalo projects may fall below it.
In as little as 10 days with title, insurance and the scope of work ready.
Yes, interior work continues year-round. Plan exterior work for warmer months when you can, and keep a vacant house heated so pipes do not freeze.
Through draws after work is completed and inspected.
Electrical, plumbing, structural and many mechanical changes need permits and inspections, in the city and in the suburbs. Closed permits also make the house easier to sell.
Yes. Once leased, a DSCR loan can pay off the flip loan.
Yes. Loans cover 1-8 unit investment properties, and Buffalo doubles are one of the most common projects we see. Budget for two kitchens, two baths and, ideally, separate heating systems.
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