I disagree.
Buffalo is so cheap. My brother is a real estate agent, he has customers coming from all over the United States, flying into Buffalo Airport to meet him and buying several homes at once, and writing a check.
People are all about buffalo not for the appreciation, but for the cash flow.
They hire a property management company to take care of the property when they are at home in carolina or whatever, and they just collect the checks, and let the apartment dwellers pay down their mortgage.
In the end, the owner still owns the property, which will increase in value over the years. When it gets paid off in full, it could be a substantial monthly repeating income.
Not to mention the serious tax advantages of owning real estate, over other investments. Write off all the taxes, depreciation, and mortgage interest, even if the house goes up a point or two in value, its all gravy.
Even when your still paying the mortgage, its possible to cashflow several hundred bucks per month on even a 2 unit place in most areas of WNY.
The 2 family house I just purchased in west seneca is an investment for me. I will live in the top, rent the bottom and live for free.
When I move out of the area, I’ll put the whole place under a property management company and collect the checks.