All Forum Posts by: Alex Deacon

@Shea Spinelli Shea please be ultra careful especially for your new purchase and your lifestyle. Lower income properties are more difficult to manage also. My company manages 600 units and I have been involved with over 1500 transactions. I buy 4-6 properties a month in Pittsburgh and I just want to see you make a very solid safe first investment. Just make sure you run very accurate numbers and confirm all the information. Over kill on the due diligence. Also maybe a good idea to talk to a successful local investor who buys property in that area to pick their brain.

Best Wishes

@Brandon Hanks Brandon I think your agent is partially correct. if you sell your home now you will pay no tax on the gain if any. If you turn the property into a rental investment after so many years I believe it will be taxed differently like at the capital gain rate when you sell. You want to consider over the next 10-20 years the property will most likely appreciate, you do have tax benefits with rental property, the income is taxed as passive income which is less than regular income and you will pay capital gain tax when you sell verses regular income tax plus it can also be put into an SDIRA. So there are so many pros and a few cons when doing what you are thinking of doing you really need the good advice of an accountant and or a wealth management professional who know real estate. i have 25 years of experience and flip 5 homes a month etc.. but I always seek the advise of my team of specialists.

@Bob Fox Bob it is very typical to see this kind of charge. In most cases at least in my area of Pittsburgh this fee is only paid once you close on your property but some agents do require that up front. Te real key to your question is how good is the agent. I will pay very good money for a good attorney, accountant, plumber etc.. as long as they are providing excellent services and bring a lot of knowledge to the table.

Jack I would be very leery of this investment. Even if the numbers make sense you should make sure that spring is not going to be an issue down the road. also make sure you don't need Flood insurance. It can be expensive. I know it sounds funny y but I have properties that are in a flood zone according to the flood maps and it never flood and then I have other properties that have flooded that are not in a flood zone. It sounds to me like you can take your time and look for something else unless the seller is willing to negotiate a price that you just cant refuse.

@Chris Mason Chris I buy at the sale and other auctions. You have to be very careful that all liens are satisfied and on tax sales you cant refinance for at least 9 Months. There are rights of redemption and other things that would prohibit getting good title right away. I am local and I would be glad to help. I also hold monthly investor workshops that you are welcome to attend.

Shawn its not likely but you may be able to write off Mileage as it pertains to any time you have to use the vehicle for the duplex. But always check with your accountant first. I have been doing this 25 years and that's the first thing I do before I make any significant purchase.

@Peter Morrissey Peter there is really no right or wrong here. What you need to ask your self is how much more rent am I going to get by doing this type of work For example if the apartment is a small two bedroom and its a galley kitchen and there is a dining room then is there really a need to open up the wall. If its a small kitchen I normally will supply a built in Microwave oven above the stove so the tenant will have as much counter space as possible. If its a large 2 bedroom or a smaller 3 bedroom with a very small kitchen and a small or non existing dining room then opening up the wall may make sense. The most important question is what will be the return on the upgrade if any.

Kim you are absolutely correct its a marathon not a sprint. I can say that the most important thing is to take your time and make sure the numbers make sense. You will over time get better and quicker at analyzing properties and making offers. Make sure your first one is a very safe investment don't think you will be retiring after your first investment. learn from the experience and move ahead from there.If you are ever near Pittsburgh please attend my monthly investor workshops in which I teach  new and seasoned investors. I buy on average 5 properties a month here in PGH and I am happy to share my knowledge. They are free and I can also help you grow your portfolio here in PGH is you desire, We also manage 600 units.

Shawn if you have created an LLC you can most likely write off the Vehicle but you really should have a good team around you. Attorney, Accountant etc.. Ask you accountant. for example this year I bought a Tractor for $20,000 which is a complete dollar for dollar write off and a few years ago I purchased a truck which was the same. I do significant amount of business and I do have an LLC.

@Alexander Hamilton My email address is in my signature I think? I am technically challenged and apparently I cant send you my email address or phone number its not allowed.