Anyone around Pittsburgh? Looking at a larger NNN deal

5 Replies

Looking to buy outside my normal area.  As I've grown, the types of properties I buy have shifted.  From nasty single families I could flip to put some pennies in my pocket, to small nasty multifamily I could flip to put quarters in my pocket.   As I've bought/fixed/sold, I've kept a lot of units, mostly to keep a good balance between liquidity and cash flow.

But anyway, I'm going off track.  Sort of.

Lately I've been buying commercial NNN deals. I own a few large ones in Houston (well, "Large" being in the ~$2-3m range each). But an opp near Pittsburgh came up. Normally I'd be like 'pfft, pass" but on a NNN, if it's a newish building with a national tenant, not having other properties/infrastructure isn't quite as big of a downside.

That said, I'd still like some info about the area before I commit to what would be my largest single purchase yet.

This NNN isn't IN Pittsburgh but it's close by.

If you have some experience around there, PM me.  Or if you just want to discuss that area in general, feel free to comment. 

Hi Cody, could you tell me more about NNN deals? Are there any downside besides capital? How do you get a national tenent? BTW I am in Houston, Thanks

There are billions of NNN deals on loopnet. Cap depends on many factors (where building is, who tenant is, etc). From low 3 CAPs to 10.

Most I'm looking at are 5-7 CAP. I like them to be high enough where I can hit a 1.25x DCR with 20% down on a reasonable loan. But not so high that I end up with extra risk by having a hank tenant in a dump area (if I wanted to chase a higher yield I'd buy more apts)

Just looking to move into more hands off stuff. Even though I don't run day to day stuff for my apts, I like the idea of one more step towards full mailbox money

@Cody L.

Feel free to send me some of the information you have.  I've lived in the city, north of the city, and now south of the city so I'm happy to help give you some intel on the area.  Even though you'd "pfft, pass" on Pittsburgh usually, you'd be surprised at some of the high end areas in certain sections of the suburbs and the city.  It's far (but not too far) from the old, smelly, steel city it used to be.

Originally posted by @James Triano :

@Cody L.

Feel free to send me some of the information you have.  I've lived in the city, north of the city, and now south of the city so I'm happy to help give you some intel on the area.  Even though you'd "pfft, pass" on Pittsburgh usually, you'd be surprised at some of the high end areas in certain sections of the suburbs and the city.  It's far (but not too far) from the old, smelly, steel city it used to be.

 A good friend of  my wife grew up there (it's Wexford).  I have the property under contract, it's just slightly outside of the normal financing avenues I typically  go with .

Congrats @Cody L.  I live in Wexford and know the area pretty well.  There is certainly a lot of growth in that area on both the residential and commercial side.  If you have any questions feel free to reach out.  Good luck with the transaction!

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