1 st DEAL COMPLETE ADVICE AND ANALYSIS

12 Replies

Well first of all, have not posted for quite some time. Still listening to podcast and reading forums and learning and would like to thank all who participate in the community. Well here it goes have been nogotiating on property since March closed on June  5th, fixer upper in Etna Pa, subdivision of Pittsburgh PA, price 20000$ closing costs taxes etc, 2000$ repairs and labor 14000$. Total investment 36000 all cash. Have been renting for the last 2 mths for 750 mth. Taxes 90$ mth insurance 40$ expense account 150$ water and sewage 70$ property manager 75$. Cash flowing at 325 a month. Also property bank appraisal at 58000. Rehab time was 6 weeks.  I probably saved 5000 by doing most of the work myself, with one other friend who is an experienced contractor. I basically just followed his lead and learned a lot in the process. I really enjoy the fact of forced appreciation.  Looking to do a similar deal. In approximately 7 to 8 mths from now. Just with a little better numbers. My job as a mariner allows me to save 15 to 20000 every 6 mths. Do not want to do traditional financing at this time. Credit score only 660 at this time which I'm working on. And do not want to pay more interest than necessary. I figure if I own 3 or 4 outright it would be easier to walk into a bank and ask for whatever I would need, goal from here is to quit my job in about 6 yrs. Have been sailing for Dept of defense for last 4 yrs. Hopefully able to aquire at least 15 rental units in that time span. I wanted to invest for quite sometime, I believe it was fear of the unknown that held me back and if it wasn't for the community here I probably would still  be waiting to make a deal, so thx for all who participate, newbies and all experienced investors. Questions or comments are greatly appreciated.

hi andy

Congratz on your first deal from fellow investor/Realtor in Pittsburgh!

I curious to why you chose Etna. Was it pricing? 

I'm excited for you, I'm glad you have a long term plan. If you have question don't hesitate to ask. 

Jenn lee

@Jennifer Lee part of it was pricing, part of it was neighborhood and school district, I have always lived in east Pittsburgh upper Lawrenceville, Bloomfield, North Oakland areas. The house in Etna, is a 2 bed 1 bath 1200 Sq feet. And I find that Millvalle,  Sharpsburg, and Etna area are very close to city, but are not in the Pittsburgh city school district. In this case it did not matter to much since I have rented to a single 40 yr old male. And pricing on that side of the river just makes more sense than Lawrenceville Bloomfield Oakland area.

@Andy Ballester   You may not get the response you are expecting when you say -- walk into a bank and ask for whatever I need -- based on owning a few properties all cash.  Ultimately, banks loan on personal credit unless you have a commercial property.  

@Andy Ballester  

 thanks, very cool, was the tenant section 8, I'm just curious bc I don't know a lot of ppl that want to invest in that area ;) saying its rough..

I'm sure not as rough as Sharpsburg

it's a good deal.  U should never pay for water and sewer.  Never 

@Jennifer Lee not section 8, market rent for area for 2,1 Etna 650 to 700 my property manager, suggested 725 I insisted on 750 he did not believe I would get much interest at that price point. I did a little better rehab and it was a nicer 2,1 for area decided to list myself and got so much interest had to take the add down in a matter of hrs. I'm not sure what you mean about Sharpsburg it might not be high end housing, but it is in one of the best School districts in Pittsburgh Fox Chapel.

@Andy Ballester  thanks for you input, I'm new to Pittsburgh. Transplant ;) so thanks you for sharing your local knowledge.

I have a 5 unit in west view. Same thing. I bought with tenants. Rent was 425. And 500.

I rehabbed it. Got 570 and 500 currently. They are 1 bed and studio.

I put a small sign up and it was rented by end of day.

I manage on my own. I pay for water and sewer and then have them pay me. They pay rent + utilities.

Congratulations Andy, and thanks for your military service. It's good to see people succeeding in Pittsburgh. 

Congratulations @Andy Ballester   .  You've taken a big step buying your first property.  Good luck with managing your property.  I do the same with mine and have a full time job.   Thank you for your military service.

Originally posted by @George P. :

it's a good deal.  U should never pay for water and sewer.  Never 

I've been advised to pay for water and sewer because the house can be foreclosed on by the municipality if those bills go unpaid.  Maybe that varies state-to-state.  I have always planned on the expense and built it into my rent.  I only rented one place for a short time after college, but I know I did not pay water and sewer as a renter.  Anyone have more detailed information or advice on this?  

Originally posted by @Kevin Siedlecki :
Originally posted by @George P.:

it's a good deal.  U should never pay for water and sewer.  Never 

I've been advised to pay for water and sewer because the house can be foreclosed on by the municipality if those bills go unpaid.  Maybe that varies state-to-state.  I have always planned on the expense and built it into my rent.  I only rented one place for a short time after college, but I know I did not pay water and sewer as a renter.  Anyone have more detailed information or advice on this?  

 yes,  plenty of that topic on here.. 

what u do is the following...  you pay the water and you bill the tenant.  this way you are always current.  always 

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