New Multi-Family Investor in Pittsburgh Area

[Brandie DeNelle]

Hello everyone! Excited to finally introduce myself on here. I have spent the past year listening to audio books and podcasts about real estate investing to acquire a groundwork of financial and real estate literacy to build off. I live in Beaver County and I am seeking 3 to 4 unit properties in the greater Pittsburgh area under $215,000 that will ideally cashflow around $200 per door. I plan to buy and hold utilizing the BRRRR method. My first goal is to purchase a property using an FHA owner-occupied loan in order to live in one unit and rent the others. Five-year plan to acquire at least 3 properties using additional owner-occupied loans. Long term goal to continue acquiring multi-family properties and scaling my operation to reach financial freedom. Looking forward to networking within this community and building my team! Please feel free to share any helpful tips, and if anyone is looking to connect, I'd love to meet you and get lunch/coffee/tea. Also, if anyone has any referrals for a rockstar agent, lender, or handyman I'm all ears! Thanks everyone 😊

[Nicholas L.]

@Brandie DeNelle

welcome.  what you have proposed is difficult but possible.  i'll DM you.

[Ryan Alexander]

Hey Brandie, congrats on learning for the past year and getting started. I sent you a DM, but I would love to help in any way I can. House hacking is the strongest strategy to get started so I think you're going to do well. Good luck!

[Miranda Micire]

Quote from @Brandie DeNelle:

Hello everyone! Excited to finally introduce myself on here. I have spent the past year listening to audio books and podcasts about real estate investing to acquire a groundwork of financial and real estate literacy to build off. I live in Beaver County and I am seeking 3 to 4 unit properties in the greater Pittsburgh area under $215,000 that will ideally cashflow around $200 per door. I plan to buy and hold utilizing the BRRRR method. My first goal is to purchase a property using an FHA owner-occupied loan in order to live in one unit and rent the others. Five-year plan to acquire at least 3 properties using additional owner-occupied loans. Long term goal to continue acquiring multi-family properties and scaling my operation to reach financial freedom. Looking forward to networking within this community and building my team! Please feel free to share any helpful tips, and if anyone is looking to connect, I'd love to meet you and get lunch/coffee/tea. Also, if anyone has any referrals for a rockstar agent, lender, or handyman I'm all ears! Thanks everyone 😊

Hi Brandie! Congrats on getting started! I would love to meet up for coffee. I have 3 multi-family rentals and one single family rental in the Pittsburgh area and I'm always happy to share what I've learned so far and connect with other women investors.

[Matt Buckley]

Hey Brandie! congrats on starting your investing journey! im a title closing agent in pittsburgh, id love to connect some time and learn mroe about what you have going on, im sure there are some ways we can help each other!

[Thomas Higgins]

@Brandie DeNelle I like your plan. A difficult time for BRRRR as your first so make sure you buy well! At minimum inspect everything; waste lines, foundations, and joist can't miss in this market. Pittsburgh has a fondness for additions without foundations. Buy well and you will do well. I would recommend increasing your price per unit and reducing your amount of units. Increase your neighborhood value, better tenants, etc.

And please make sure the property you acquire has a correct certificate of occupancy with the city. 

 We have acquired over 20 properties in Pittsburgh this year and are closing on 3 more by end of the year. The majority needed meaningful renovations. If I can be helpful in any way, let me know. 

[Liam Tennies]

Hi @Brandie DeNelle, congratulations on getting started and I love your game plan. 3 properties in 5 years is totally achievable using the house hacking strategy and BRRRR's to accelerate the growth. I'm a house hacker myself, and work with a ton of investors as an agent, so I'm happy to help with anything along the way.

Being in Beaver County should serve you well. Prices on the 2-4 units are typically a bit lower and cash flow is a bit better than in Allegheny County. Usually some good returns on the BRRRR's out there too, from what I've seen. Not to mention the lower taxes as well.

If you haven't talked to a lender yet, I recommend doing so even if you're not quite ready to pull the trigger. I have some rockstar lenders I can refer to you that I work with often. I'd talk to a couple and see who can give you the best terms. Feel free to reach out and best of luck! You're gonna crush it!

[Jeremy Taggart]

@Brandie DeNelle sounds like what I have been doing the last 7 years haha. I started out with a triplex house hack in Ambridge in 2016 and have done 5 more house hacks since then to take advantage of the owner occupied loans. $200/door pretty tough to do nowadays if you are using proper expense numbers. I'd shoot for $100/door more realistically. I have utilized house hacking along with BRRRR to accelerate things and think that is a great strategy if you can find opportunity to get some equity in something. If you like Beaver County, cash flow tends to be better there for similar quality areas compared to Allegheny. I wouldn't expect it to appreciate quite as much there though compared to closer to city. I'm a fan of buying both in and around city and buying some in the surrounding counties as well to get best of both worlds.

[Elise Bickel]

Hey Brandie! Congrats and welcome!

House Hacking is one of my favorite ways to see investors really jump into the business. I will say that $200/door is absolutely do-able, but I'm going to say something that might create a little controversy. The best way to see these larger margins is invest in less desirable areas. The C and D areas usually have the larger margins the A and B areas mainly because there is the un-prepared for expense of the higher turn overs and higher vacancies. I have a few investors that I work with in Beaver County that are seeing $300-$350/door profit however they know they are taking a risk in those areas. We are very diligent about screening tenants and very proactive with evictions if something happens because we don't want to go 3-4 months without payment as that would completely eliminate the profit. If you are open to less desirable areas you could see even more profit then $200/door. 

As for your plan for 3 in 5 years, totally doable. I have a few investors who have me start looking 300 days after moving into their investment because by the time they search, place and offer and close they are past the 365 day mark and can move again. 

Best of luck to you!