New to REI - Looking to do first flip/rental in Pittsburgh

7 Replies

Hi BP! My name is Amy and I'm 24 years old. I am new to the world of REI and am super eager to get started after doing a bunch of research, mostly through BP. I currently live in Los Angeles but am looking to do my first REI venture in Pittsburgh, PA which is my hometown. I currently work in the film/tv industry but really like the idea of supplemental and passive income through real estate. I'm super motivated and willing to put in the work to achieve financial security so that I don't have to rely on the gig economy lol.

My short term goal is to buy my first investment rental property maybe in South Side, Squirrel Hill, Lawrenceville, Mt. Washington, Greenfield, or Highland park, B/C neighborhoods using the BRRRR method.

However, I am not financially at the point where I can purchase a property on my own and an FHA loan wouldn't be an option since I wouldn't be living there. Since I'm also curious about flipping houses, I'm thinking of potentially partnering on a flip with someone who has experience as my very first venture in real estate. I think being involved directly in the process in some way early on would be a great way to learn the ins and outs of flipping/rehabbing rather than hearing and reading about it online. Any input on this would be appreciated as well.

Most importantly, I would love to connect with any local investors, realtors, or flippers to get some insight and/or advice. Hit me up!

Hey Amy! Welcome to the REI world! As a newbie myself only in about 2 years I wanted to go out and invest out of state but took less profit and more hands on experience within California - with hopes of carrying some experience with me to out of state projects. As a realtor, I first learned from a client who was flipping by turning down a commission to walk through his entire project and learn his books. Those 2 months of shadowing him and his crew outweighed any books or training I could've bought with the $5k commission.

I know its probably tough right now in the middle of the pandemic - but connecting with local REI Groups will allow you to share experiences with several other investors at different points in their projects. Hopes this helps a bit!! All the best
 

Hi Amy! My wife and I are originally from California and moved to Pittsburgh just a few months ago! Working on our first flip in Lawrenceville and have two others in escrow also in the same area. It’s been a little bit of a challenge not knowing people’s work ethic out here, and everyone seems to be too busy to take on any new projects. We are still learning but really enjoying every minute of it! Would love to connect, to share our experience:-) 

@Amy Cheng

Check out my article about the Cons of BRRR especially if you live remotely.

https://www.biggerpockets.com/...

Note this is coming from an Accredited investors POV who used to do turnkey rentals.

I personally would not do Remote BRRR as there is just a lot of risk with 1) risk of embezzlement with contractors 2) change orders and 3) bank doing bait and switch doing a lower appraisal and/or LTV on the refinance.

This is especially true for high paid professional or those with a net worth of over $300,000.

@Lane Kawaoka

Thanks for the info, I'll check out your article. Helpful to know the risks/cons of brrrr method that people don't usually talk about. It seems more risky for a newbie to attempt without experience, especially out of state. Hopefully one day I'll be able to invest local.