Buy properties under $75k

[Tom Jknes]

Hello everyone I am looking to get into the Pittsburgh market.  What area should I stay away from and how much work goes into fixing up a 75k property in Pittsburgh?

[Stuart Udis]

@Tom Jknes How do you absorb the cost of replacing major systems in real estate priced below $100,000. That is the core challenge you will face. Many of these costs are relatively fixed, which disproportionately impacts lower priced real estate. This is often the first hurdle investors struggle to overcome.

The second challenge is ongoing operations, which are equally unforgiving for the same reasons. Both operating expenses and capital expenditures are harder to absorb at lower price point.