New Young Investor - Pittsburgh

10 Replies

     My name is Cody, I just graduated from college and I currently live in Cranberry Pa (rent free (for now)). I have a full time sales job (in Robinson) that provides me with a consistent schedule (9-5) as well as a decent wage. I have wanted to invest in real-estate since I was very young, but, unfortunately, don't know a single person in the business. I believe my best course to take (at this point in my career) is to invest in rental properties. I am currently looking for a residential property in which I will occupy one of the units that is priced well enough for me to afford, while providing enough cash flow to break even, or, preferably profit.

     I came from a family that worked hard and enjoyed their time away from work, but I am a little different. I crave educating myself in things outside my current field, and when I go home after a days work, the only thing I want to do is put my time to good use in something that will bring future returns. I want to start investing in real-estate because it fits the kind of person I am. It is VERY hard work, it brings future returns, and it allows for a future with financial freedom. I love working in general, but working for yourself brings a sense of fulfillment you cannot achieve at ANY job. I have the work ethic to achieve my goals, I have the time, drive, interest, intelligence, perseverance...etc. but what I do not have is the extensive knowledge of the real-estate industry. I have been studying a lot, listening to the Bigger Pockets Podcast, buying real-estate books that are suggested, meeting with realtors, meeting with banks...etc. but I don't actually know any other investors in the area. This post is meant to introduce myself to the community! I want to get to know everyone and learn about everyone else's experiences in Pittsburgh.I am excited to speak with each and every one of you and if you have any suggestions/questions for me please do not hesitate to ask!

@Cody Hunt Way to start thinking about jumping into investing early! House hacking is definitely the best way to start for someone right out of college. Really sets the stage and accelerates your ability to scale up in your investing career. I've done a few house hacks since graduating college and it's been great. It's still possible to find a place where you can make a profit while living there every month. I'm a fan of places that need some cosmetic work so you can make updates while you are living there and over time to build equity. If the cash flow is good enough on the property you can get it to the point where the cash flow can pay for the improvements on the building over time, allowing you to use your job income to save for the next one. 

I agree with @Jeremy Taggart , it is a great option to get into a house hack that needs some love to start out to get that rental property experience. You can also do a FHA loan to keep you downpayment low so that you can start stashing more cash. Check out a 203K loan if you want to invest into a fixer-upper(that way you can build the cosmetic costs into the loan itself)!

@Cody Hunt  welcome to Pittsburgh BP! Real estate is exciting and you will meet some really incredible and interesting people. Feel free to PM me with any more questions!

Thanks for commenting! I was curious, a realtor I spoke with told me that the FHA loans have higher interest rates. Is that correct? If so would it still be a good idea to take on the higher interest in order to have more capital to put on my next property? Also I don't really know anything about a 203k loan, but I have heard about them here and there. Is it a good idea to go speak with a mortgage lender that was suggested by my realtor?

I agree with the others about FHA loans and house hacking - I wish I would have known about house hacking right out of college! Good for you for getting started early.

Also be sure to check out local real estate investing groups/clubs/meetups. You can and will start to build your "team" from networking! Look up ACRE of Pittsburgh, Pittsburgh REIA, and look on the MeetUp platform for local events in the North Hills.

Good Luck! 

Originally posted by @Cody Hunt :

     My name is Cody, I just graduated from college and I currently live in Cranberry Pa (rent free (for now)). I have a full time sales job (in Robinson) that provides me with a consistent schedule (9-5) as well as a decent wage. I have wanted to invest in real-estate since I was very young, but, unfortunately, don't know a single person in the business. I believe my best course to take (at this point in my career) is to invest in rental properties. I am currently looking for a residential property in which I will occupy one of the units that is priced well enough for me to afford, while providing enough cash flow to break even, or, preferably profit.

     I came from a family that worked hard and enjoyed their time away from work, but I am a little different. I crave educating myself in things outside my current field, and when I go home after a days work, the only thing I want to do is put my time to good use in something that will bring future returns. I want to start investing in real-estate because it fits the kind of person I am. It is VERY hard work, it brings future returns, and it allows for a future with financial freedom. I love working in general, but working for yourself brings a sense of fulfillment you cannot achieve at ANY job. I have the work ethic to achieve my goals, I have the time, drive, interest, intelligence, perseverance...etc. but what I do not have is the extensive knowledge of the real-estate industry. I have been studying a lot, listening to the Bigger Pockets Podcast, buying real-estate books that are suggested, meeting with realtors, meeting with banks...etc. but I don't actually know any other investors in the area. This post is meant to introduce myself to the community! I want to get to know everyone and learn about everyone else's experiences in Pittsburgh.I am excited to speak with each and every one of you and if you have any suggestions/questions for me please do not hesitate to ask!

 Welcome to the site Cody.

@Cody Hunt HI Cody, I saw your posting earlier and wanted to chime in. While the responses are good, may I recommend you speak with a bonafide lender to get the real "skinny" about interest rates etc. Not every borrower will be offered the same interest rate as there are many factors that affect how a lender will handle your application. Your credit score, credit history, income, etc all can affect the loan rate. I agree that to get started, a house hack may be a good option. And there may be others. Please also be aware that with an FHA loan, the home inspection ramifications can be more picky. It's always wise to work with an agent and lender who are sensitive to your specific situation and needs. Hope this helps!

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