Small multi-family (2-4 units) buy & hold investment.
Purchase price: $180,000
Side by side duplex: 3/2 and 3/1 each unit with integral garage, deck and basement
What made you interested in investing in this type of deal?
I wanted to house-hack and this size unit feels like a house while collecting rent. When I first saw the property it quickly went into contract. I was negotiating on a different property that fell thru when this came back on the market. I just knew and acted quickly.
How did you find this deal and how did you negotiate it?
I negotiated thru my RE agent after seeing both side we quickly came to an agreement
How did you finance this deal?
I paid cash with a heloc and plan on using the BRRR method
How did you add value to the deal?
I will do repairs on the roof, external walls, new windows, 1 new kitchen, power wash and paint.
Lessons learned? Challenges?
This would not have been possible without learning everything I could thru: podcasts, forums, networking with members and reading. It gave me the confidence to pull the trigger and send me on the path of realizing my lifelong dream. Since I am moving to Pittsburgh, my current home will also be rented giving me: 2 rentals. I plan on acquiring the next property within the next six months.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with an agent that I would definitely recommend. She was very diligent at every step.
Great to hear you have started your investment journey. I am in the Pittsburgh area looking to start mine as well. I happened to be scouring BP for "Pittsburgh" just to see what specific investment strategies/stories I could research. That's how I found your post. Anyways, could you tell us a little more about the property? What are the current and potential rents for each unit? Did you use the tools on this site to calculate the potential cash flow? What is the total cash flow on the property if you don't mind me asking? I am looking to purchase either a multi or SFR using the BRRRR method as my first investment. I am hoping to use as much local and BP info as I can to negotiate the best possible deal I can. Any advice you would like to share in dealing with propoerty in the pittsburgh area? Thanks for any information you can share.
@Carl Evanko I am happy to share any information that I have thanks to my BP friends who have given me the support to do this. I purchased the property in Dormont because I am still learning about the areas I wanted a B neighborhood. One side is rented for $1200 and they pay everything except water and sewer I think. My side was renting for $1050 (it will go up once I move out since I plan on updating it). I didn't use the calculator from BP but from a member who runs one of my meetings. Practice the numbers as much as you can: I did my numbers based on the BRRR. In looking I decided to go to as many open houses as I could letting the agents know that I was looking without an agent. One of them called as a follow up, we clicked and she became my "boots on the ground". At times skyping the house hunting other times going with my husband. I looked at both Zillow and Realtor early morning and late at night: People would list homes at 8pm on Sunday. My property went into contract twice before I got it, so you have to react quickly: saw the listing on Monday was in contract Friday. The initial asking was $225k with multiple offers. Multi is your best bet as you generate income while living there. Don't get emotional, trust your numbers and know your max there's ALWAYS another deal waiting. Hope this helped. Any more questions feel free to reach out.
@Dominique Pradel-Lewis Thanks for the information. Sounds like you found yourself a good deal. I would have not even considered the property with it being listed for 225k. I am of the mindset that if a property around here is listed close to what other properties in the area are selling for, 20% below won't get me the property. That's good to know and allows me to rethink property pricing in this area or at least be willing to bid on the property knowing that I have a chance. I am from the South Hills and am familiar with Dormont. It's definitely a decent little area and great for rental properties. If you can find anything in Mt Lebanon for the right price, you should definitely jump on it. That's a great school district with great rental areas as well but property prices can go up quick. Thanks so much for the reply! If you have any questions about the area, feel free to PM me.
@Carl Evanko . Thanks. Helping one another is what the is all about. I have Mount Lebanon in my sight but want to also focus on some up and coming area as well. Patience and quick action paid off in this situation. You have to consider opportunities outside of your parameter and it may work for you perfectly. Always make sure the numbers work.
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