Hello! New to BP, Ready to Invest, Where to Start (Pittsburgh)?!

New Member Introductions
8yFollow

Hello! New to BP, Ready to Invest, Where to Start (Pittsburgh)?!

Quiana Hayes-Perciavalle
Aliquippa, PA · Member since 2017 · 2 posts · 1 vote

Hello Everyone, I am new to BP and ready to begin investing! I am a lifelong resident a homeowner residing on the outskirts of Pittsburgh, PA (airport area). My husband and I would like to begin investing in properties within Pittsburgh and surrounding areas sooner than later. I have been researching, participating in webinars, reading books/blogs/forums, listening to podcasts, browsing the MLS, etc... attempting to do my due diligence. I've realized this process can become paralytic if you don't make strides towards taking action. We are ready to get out there and start investing!

We are interested in acquiring multi-unit rental properties that will appreciate in value. We have some interest in areas of the city such as Southside, Oakland, Mt Washington, etc.... Starting out, we are interested in properties that do not require renovations. I am doing more research into turnkey investment properties as well. As we establish a network and resources, rehabbing/renting as well as flipping would be an option. At this point in time the thought of diving rehabbing is a bit overwhelming (securing funding, contractors, etc...). Any insight on this would be appreciated! 

Additionally, any insight on financing would be helpful. I've read forums mention local banks, others recommend hard money lenders and others reference private lenders. My credit is great, debt consists of student loan, mortgage and car note. We are partnering with a friend for this venture and will work to bring the necessary money to the table (we don't have an excess of savings). I'm really not sure where to start but want to have a logical approach.

Also, I noticed there are 2 networking groups that seem to be popular in our area, Pittsburgh REIA and ACRE of Pittsburgh. Any feedback on the difference between these groups would be appreciated, as I am trying to determine which I should begin attending (one or both).

Thanks!

Quiana

1Reply
40 views

Investor-friendly agents in Pittsburgh, PA

See the agents BiggerPockets members work with in Pittsburgh, PA.

Most Popular Reply

Anthony Angotti
Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
8y

Hi @Quiana Hayes-Perciavalle

Both investing groups are good to go to. Pittsburgh REIA has subgroups focused on different areas and parts of the business that would be worth attending once you find a niche that you want to operate in.

The best deals take some solving problems in the form of deferred maintenance, tenant issues, etc. 

Regarding renovations it might seem daunting, but it's part of the business. In some ways as long as you buy right to account for that cost it actually gives you a bigger cushion. Reason is that you get a better deal up front. Depending on how long you plan to hold a property, even the pretty ones will have things break eventually. If your cash flow is already slim just on the taxes, insurance, loan payment side then that puts you at more of a disadvantage. If you bought a property that needed work in the first place you'd get it done up front and still have a lower basis on your financing. In addition you'd better know how the major mechanical systems were maintained because you were the one to replace them in the first place. 

Just playing devils advocate. Buying turnkey is fine, but you need to know that either way you are paying to have the work done on the property. If you pay that in the form of a higher purchase price and you take a 15 year or 30 year note you may still have to replace all those things again if you hold the property that long anyhow.  

1Reply
See this reply in the discussion

7 Replies

Jump to latestLatest
  • Wilson Lee
    Birmingham, AL · Member since 2014 · 178 posts · 75 votes
    8y

    We did our first rehab on a personal line of credit.  $30K     We got it for 20K at foreclosure,.  Did 10K in carpet/paint/appliances.   it appraised at 65K,  We cashed out 40K when we got it financed.  It took a while to find a bank that would do a low loan amount.

    The rehab was not scary at all.  The appraisal was the worrisome part. 

    I found that turnkey had little equity passed to us.  It ended up being our cash stuck in the property and limited our growth.

    0Reply
  • Quiana Hayes-Perciavalle
    OP
    Aliquippa, PA · Member since 2017 · 2 posts · 1 vote
    8y
    Thanks Wilson, that doesn’t seem like a complex process at all. Definitely something for me to consider! I’ll be calling my bank today.
    0Reply
  • Gary Swank
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 822 posts · 255 votes
    8y

    Hi @Quiana Hayes-Perciavalle Quiana, I am so glad to hear you are ready to invest in Pittsburgh. As long as you surround yourself with knowledgeable people that have experience in those neighborhoods, you should be fine. As far as financing goes, the best way to start is to get a pre-approval. But that doesn't necessarily have to be from a bank or hard money lender. Again, get with people that have had positive experience working with a variety of lenders that could enable you to choose one that best fit your needs and financial situation. Thanks, Gary

    0Reply
  • Anthony Angotti
    Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    8y

    Hi @Quiana Hayes-Perciavalle

    Both investing groups are good to go to. Pittsburgh REIA has subgroups focused on different areas and parts of the business that would be worth attending once you find a niche that you want to operate in.

    The best deals take some solving problems in the form of deferred maintenance, tenant issues, etc. 

    Regarding renovations it might seem daunting, but it's part of the business. In some ways as long as you buy right to account for that cost it actually gives you a bigger cushion. Reason is that you get a better deal up front. Depending on how long you plan to hold a property, even the pretty ones will have things break eventually. If your cash flow is already slim just on the taxes, insurance, loan payment side then that puts you at more of a disadvantage. If you bought a property that needed work in the first place you'd get it done up front and still have a lower basis on your financing. In addition you'd better know how the major mechanical systems were maintained because you were the one to replace them in the first place. 

    Just playing devils advocate. Buying turnkey is fine, but you need to know that either way you are paying to have the work done on the property. If you pay that in the form of a higher purchase price and you take a 15 year or 30 year note you may still have to replace all those things again if you hold the property that long anyhow.  

    1Reply
  • Ian Hoover
    Bridgeville, PA · Member since 2013 · 395 posts · 105 votes
    8y

    Welcome to BP! 

    @Anthony Angotti hit the nail on the head, buying turnkey you will get lower returns however if you are good with lower returns and would rather not have to worry for your investment until you have your feet than I get that.

    We love to help people get started investing, let us know if you have any questions.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    8y
    Originally posted by @Quiana Hayes-Perciavalle:

    Hello Everyone, I am new to BP and ready to begin investing! I am a lifelong resident a homeowner residing on the outskirts of Pittsburgh, PA (airport area). My husband and I would like to begin investing in properties within Pittsburgh and surrounding areas sooner than later. I have been researching, participating in webinars, reading books/blogs/forums, listening to podcasts, browsing the MLS, etc... attempting to do my due diligence. I've realized this process can become paralytic if you don't make strides towards taking action. We are ready to get out there and start investing!

    We are interested in acquiring multi-unit rental properties that will appreciate in value. We have some interest in areas of the city such as Southside, Oakland, Mt Washington, etc.... Starting out, we are interested in properties that do not require renovations. I am doing more research into turnkey investment properties as well. As we establish a network and resources, rehabbing/renting as well as flipping would be an option. At this point in time the thought of diving rehabbing is a bit overwhelming (securing funding, contractors, etc...). Any insight on this would be appreciated! 

    Additionally, any insight on financing would be helpful. I've read forums mention local banks, others recommend hard money lenders and others reference private lenders. My credit is great, debt consists of student loan, mortgage and car note. We are partnering with a friend for this venture and will work to bring the necessary money to the table (we don't have an excess of savings). I'm really not sure where to start but want to have a logical approach.

    Also, I noticed there are 2 networking groups that seem to be popular in our area, Pittsburgh REIA and ACRE of Pittsburgh. Any feedback on the difference between these groups would be appreciated, as I am trying to determine which I should begin attending (one or both).

    Thanks!

    Quiana

     Welcome aboard.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free