New Out-of-State Investor Seeking Advice

12 Replies

Hello BP community,

I live in the Bay Area and would like to purchase my first multi-unit property in south western Pennsylvania. I am from Pittsburgh and this is where I am most familiar with the neighborhoods. Given that I am out of state and a first-time investor, I’d prefer my first property require minimum upfront updates. I have spent the last few months researching and evaluating deals, however, nothing seems to be hitting my numbers and I am unfortunately feeling a bit stuck. Below are the high level criteria I am basing my decision on before making an offer on a property:

  • B/B- Neighborhood
  • CoC >=8%
  • Asking price <=180k
  • Required updates <=10k

For the Western PA investors out there, is this doable? Or have I missed my opportunity for getting a rather turnkey multi-unit at this price point?

For the out of state investors, how have you successfully managed putting in a bit of work in on properties while not being regularly present? What kind of team do you need to have in place? What works for you for engaging with this team?

    Thanks in advance!

    @Nicolina Nanni

    @Nicolina Nanni

    With there being very old houses in and around Pittsburgh, most houses do need some work. That said, I think your criteria is doable depending on what minimum upfront updates you’re looking for and what you consider a B neighborhood. Which areas are you currently looking to invest in?

    I would highly recommend looking a bit west in Rock County, Wisconsin. I work primarily in the Janesville and Beloit markets. Based on your criteria, this market is very fitting for your goals. Couple that with business growth and development from Amazon, ABC Supply CO., Dollar General and many tech and medical companies, this market is on the up and up. If you do have any interest or would like to learn a bit more, I am more than willing to take some time out to see how we could best help your RE goals! Best of luck!

    @Nicolina Nanni I'm no expert but with looking in PGH market the past year I believe it;s doable.

    I'm OOC investor so I now what you are going through (minus the great loans that you can get haha). I have one proprty and currently looking for my second one and I have never visited PGH (yet). 

    You'll need to find good investor friendly agent, a decent contractor (which is extremly hard in PGH from my experiance) and good PM. It's all doable and since you are originally from PGH you have great knoeledge in the neighborhoods (which we know is so street by street).

    Fell free to DM me if you'll need some help or want to chat.

    Best of luck!

    Neighbor here.   If you have personal contacts in the Pittsburgh area I would look to those relationships to find a person you can trust to look out for you.  You would be surprised who or what may come up.  For example, our one remaining property in western NY is being managed effectively by my old friend's, friend's, husband's stepson.  No joke.  I give this guy full access to a credit card, and he takes care of all repairs and related issues for competitive hourly handyman fee.  In 5 years, accounting is down to the penny.      

    @Ryan Alexander Thanks for the reply!

    The amount of updates we are willing to do is still something I think I need to define, so thank you for pointing that out. On a scale of 1 being turnkey and 10 being a flip, I would consider 3 being standard cosmetic updates (carpet, paint, with some structural work) that do not go past my 10k planned budget. Does that make sense? 

    I have been leveraging Area Vibes and Niche.com for determining if the property is in a B neighborhood and getting my agent's input.

    My partner and I are currently looking in Butler, Beaver, and Washington County.

    @Darius Ogloza Hey there neighbor! I do consider having my extended family in the area as an advantage -- even if it just means having a place to stay while seeking out properties. I am also considering local investor partnerships, which may alleviate some of the burden of having to travel to see opportunities.

    @Nicolina Nanni

    I’m from NY and am just about to hit the market with my second flip in Pittsburgh. Sounds like you’re looking for something turn key which might be tricky in PGH, 10k might be a bit thin to do much in a multi family property. Have you tried adjusting your must have sliders and seeing what falls into place?

    @Nicolina Nanni I would start right away. It's very difficult to find one and it will probably take a while (I hope not tho). Start now and when you find someone keep this relationship alive (send him/her cookies for Christmas etc). When you'll need him/her- you'll have a direct line. 

    This is my two cents anyway...

    @Nicolina Nanni

    I would find a really great property manager who’s verse in walking OOS investors through the rehab and TLC. I’ve use multiple lines of communication (phone , email, facetime , zoom) to connect with my PM at least daily for updates

    Outline a timeline so it’s easier to stay on task with your team

    Good luck

    Generally speaking for the successful out of state investors that I have seen. The most important thing is to form a good team (core 4) that you know and trust. Once you have that then you can start investing with confidence. 

    Originally posted by @Nicolina Nanni :

    Hello BP community,

    I live in the Bay Area and would like to purchase my first multi-unit property in south western Pennsylvania. I am from Pittsburgh and this is where I am most familiar with the neighborhoods. Given that I am out of state and a first-time investor, I’d prefer my first property require minimum upfront updates. I have spent the last few months researching and evaluating deals, however, nothing seems to be hitting my numbers and I am unfortunately feeling a bit stuck. Below are the high level criteria I am basing my decision on before making an offer on a property:

    • B/B- Neighborhood
    • CoC >=8%
    • Asking price <=180k
    • Required updates <=10k

    For the Western PA investors out there, is this doable? Or have I missed my opportunity for getting a rather turnkey multi-unit at this price point?

    For the out of state investors, how have you successfully managed putting in a bit of work in on properties while not being regularly present? What kind of team do you need to have in place? What works for you for engaging with this team?

      Thanks in advance!

      Many investors find investing out of state works best when you go with a Turnkey Provider. This way everything is done for you and the investment is passive. Also, many do OOS when their local market doesn't make sense.

      Good luck to you!