Prime Buffalo Multifamily Investment: 12-Unit Apartment Building with 6.16% Cap Rate

272 Colvin Ave, Buffalo, NY 14216

Featured Multifamily

AI Insight

Opportunity

The property is priced at $1,750,000 with a 6.16% cap rate, generating an NOI of $107,842. This cap rate is above the national average for multifamily assets, indicating a higher yield relative to risk. The price per unit of $145,833 is competitive for the Buffalo market, offering an accessible entry point for investors.

AI Insight

Opportunity

Located in Buffalo, NY (ZIP 14216), the property benefits from MF zoning, ensuring compliance for multifamily use. Buffaloâ€™s ongoing economic revitalization, driven by affordable living demand and infrastructure investments, supports steady rental demand.

AI Insight

Opportunity

Built in 1940 with no recorded renovations, this Class C mid-rise presents clear value-add potential. Upgrades to units, common areas, or energy-efficient systems could justify rent increases, boosting NOI and property value.

AI Insight

Strength

Rent includes water, garbage, hot water, heat, and internet, which simplifies tenant management and reduces variable cost fluctuations. This structure can lead to higher tenant retention and lower turnover costs, stabilizing the NOI.

AI Insight

Strength

The propertyâ€™s key features include a stable tenant base, likely due to utility inclusions and affordable pricing. This reduces vacancy risk and supports consistent cash flow. As a 12-unit building, it offers scalability for hands-on investors while being manageable with professional property management.

$1,750,000

Investment Value

6.16%

CAP Rate

📈 Strong 6.16% cap rate vs market average.

$107,842

Annual NOI

💰 High NOI demonstrates strong operational efficiency.

8,640 SF

Rentable Area

🏢 Optimal size for institutional investors.

0.0%

Occupancy Rate

✅ Exceptional occupancy exceeding market.

$202.55

Price per SF

🎯 Attractive price per SF vs comparable properties.

Property Overview

Multifamily Building located in Buffalo, NY
Built in 1940
Strong cap rate of 6.16%
8,640 SF of rentable area

Property Details

Year Built	1940	Building Type	Multifamily
Total Size	8,640 SF	Zoning	MF
Parking Spaces	N/A	Occupancy Rate	0.0%
Cap Rate	6.16%	Annual NOI	$107,842
Price	$1,750,000	Price/SF	$202.55
Location	Buffalo, NY	County	Erie

Model your investment returns and cash flow projections

Purchase Price ($)

Annual NOI ($)

Down Payment (%) 25%

Interest Rate (%) 5.0%

Loan Term (years) 30 years

Property Tax Rate (%) 3.00%

Holding Period (years) 5 years

Annual Appreciation (%) 3.0%

Down Payment Amount: $2,125,000

Loan Amount: $6,375,000

Monthly Mortgage: $34,234

Monthly Tax: $8,365

Total Monthly Payment: $42,599

Monthly Cash Flow: $1,234

Cash on Cash Return: 8.7%

Cap Rate: 6.2%

Debt Coverage Ratio: 1.54x

IRR (5 years): 12.3%

Projected Property Value: $9,854,932

Total Equity: $4,567,890

📊 Monthly Payment Analysis

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💵 Cash on Cash Return

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🚀 Internal Rate of Return

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🏛️ Property Tax Analysis

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* Calculations are estimates only. Actual returns may vary based on market conditions, financing terms, operating expenses, and other factors. Consult with financial and legal professionals before making investment decisions.

Where Your NOI Goes Each Month

* Distribution based on current inputs. Actual expenses may vary.

Total Return if Sold (Exit Strategy)

* Assumes property appreciation and no sale costs. Past performance doesn't guarantee future results.

Investment Due Diligence FAQ

Key questions for informed investment decisions

What is the investment thesis for this property? +

This 12-unit multifamily property in Buffalo presents a strong cash-flow investment with immediate yield and long-term upside. Priced at $1,750,000 with a 6.16% cap rate and an NOI of $107,842, it offers an above-average return for a Class C asset. The investment thesis centers on acquiring a stable, utility-inclusive apartment building in a revitalizing Buffalo market, benefiting from steady rental demand, manageable scale, and clear value-add potential through renovations and operational efficiencies to drive appreciation.

What are the key financial metrics and how do they support the investment? +

- **Sale Price:** $1,750,000 - **Price per Unit:** $145,833 - **Cap Rate:** 6.16% - **NOI:** $107,842 - **Price per Square Foot:** $202.55 (calculated) These metrics indicate a competitively priced asset with a high cap rate relative to national averages, supporting strong cash flow. The NOI provides solid debt service coverage, and the price per unit is accessible for entry into the Buffalo multifamily market. Rent includes utilities (water, garbage, hot water, heat, internet), which stabilizes operating expenses and can enhance tenant retention.

How does the location and market context impact this investment? +

Located at 272 Colvin Ave in Buffalo, NY 14216, the property is in an MF-zoned area ideal for multifamily use. Buffalo is experiencing ongoing revitalization, with growing demand for affordable housing, making it a resilient upstate New York market. The location offers steady rental demand, supported by economic development and infrastructure investments. This positioning reduces vacancy risk and provides a stable environment for long-term holds, with potential for rent growth as the area continues to improve.

What are the primary risks associated with this property? +

- **Age and Condition:** Built in 1940 with no recorded renovations, which may lead to higher maintenance costs and capital expenditures for updates. - **Utility Costs:** Rent includes multiple utilities, exposing the owner to inflation in water, heat, and internet expenses that could squeeze margins if not managed. - **Market Sensitivity:** As a Class C property, it may be more vulnerable to economic downturns affecting tenant affordability, though Buffaloâ€™s lower cost of living mitigates this. - **Limited Land:** The 0.10-acre lot size restricts expansion opportunities, requiring efficient use of existing space. Due diligence should include a thorough inspection and analysis of local tax rates to fully assess these risks.

What value-add opportunities exist to increase property value? +

- **Interior Upgrades:** Renovating units with modern finishes, appliances, and energy-efficient systems can justify rent increases and reduce turnover. - **Common Area Improvements:** Enhancing lobbies, hallways, or adding amenities like laundry facility upgrades or secure storage can improve tenant satisfaction and allow for premium pricing. - **Operational Efficiencies:** Implementing sub-metering for utilities or renegotiating service contracts could reduce expenses and boost NOI. - **Exterior and Curb Appeal:** Landscaping, painting, and parking area improvements can attract higher-quality tenants. These value-add strategies are feasible given the propertyâ€™s current condition and market position, offering clear pathways to increase cash flow and appreciation.

Things Near

Delaware Park

1.5 miles

University at Buffalo South Campus

0.8 miles

Wegmans (Amherst Street)

1.2 miles

Buffalo Zoo

1.7 miles

Hertel Avenue Restaurants

2.0 miles

About Buffalo

Located in New York, Buffalo is a dynamic area with strong commercial real estate fundamentals and excellent connectivity.

Population N/A

Median Age N/A

Avg. Household Income N/A

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Prime Buffalo Multifamily Investment: 12-Unit Apartment Building with 6.16% Cap Rate

Opportunity

Opportunity

Opportunity

Strength

Strength

Property Overview

Property Details

Where Your NOI Goes Each Month

Total Return if Sold (Exit Strategy)

Investment Due Diligence FAQ

Things Near

Delaware Park

University at Buffalo South Campus

Wegmans (Amherst Street)

Buffalo Zoo

Hertel Avenue Restaurants

About Buffalo

Similar Properties You May Like

Prime San Fernando Multifamily: 5-Unit Value-Add Opportunity with 7.76% Cap Rate

Prime Investment Opportunity: 1531 Green St, Philadelphia, PA - Value-Add Multifamily Asset

Prime Value-Add Opportunity: 8-Unit Multifamily Asset in San Fernando, CA

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