All Forum Posts by: Andrea Lane

Eylon, 

We own many properties in Pittsburgh.  We also have a turnkey rental company.  If you would like to talk about the areas we do and don't work in let me know and we can set up a call.

We have never purchased any SF, MF or apartments in our names, we always use an LLC (some LLCs may have more than 1 unit). I think there is a limit of 10 in your personal name using traditional financing.

We use small local and community banks and hard money to purchase our units.  We also refinance most properties within 6 months, if the numbers make sense.

Start building relationships with lenders who will lend to an LLC. Feel free to reach out if you would like to talk some more.

Brittany

First - do not compare yourself to others.  You do not know their background or their pockets.

There are some strategies that may help you depending on your risk tolerance and knowledge.

- if you are in a high cost state, you may look at locations that have more reasonable properties.

- Are you comfortable being highly leveraged, you can put as little down as possible and maybe have the ability for 2 instead of one (Always make sure the numbers make sense and there is cash flow).

- if you are in an appreciating marketplace, in 18 months you can use the BRRR method to own 3 properties (if your lenders require 8 months before refinancing).

If you continue to learn about how others do business and do not stop purchasing you will get there as well.  Let me know if you have any questions.

I think plumbing is the most frequent issue when it comes to rentals.  Your lease looks like it says all major repairs, unless it is caused by the tenant.  I would let them know that the next time the bill is on them, since it appears they are causing the issue.   Ask the plumber to put his response in writing, if they push back send them the plumbers assessment.

You can always change all future leases to let them know they are responsible for all repairs except HVAC and electric and sewer (If that makes sense in your area).

Andrew

I have no experience in self storage (although I understand the ROI can be impressive). I do however have properties in 5 states so I have a little experience with long distance investing.

I know you said your parents can walk the property, but are they experienced investors.  If they are then they may have the skills and team members you will need to purchase and manage the property.

If not you probably want a solid team in place before you venture to the area. This is a team you have interviewed and feel comfortable with.  I have had bad experiences with people who I thought were good, I also have some awesome partners in different states.

Interview real estate investors in the area.  Make sure they understand the specific area and the asset type you want to invest in.  Ask if it is a needed commodity and how much rents are where the property is located.  

Do you have lenders lined up.  If you are a new investor with no experience in self storage you will need to find a lender who will loan to you.  If your buying for cash then that is not an issue, but is it worth tying up that much money?  Make sure your numbers will work before you approach them.

Do you have a manager lined up who has experience running a self storage facility.  A normal property management company will not be the right fit.

Running out of area investments takes time to get the players in place, but if it is done right it can be wonderful.  Let me know if you want to talk.

I do no not think this is an issue with most investors, we frequently purchase properties with tenant in them.  

We do however want proof that the of the tenants payments.  If they are not paying (or there is no proof) we require one years rent in escrow to cover ourselves if the tenant does not pay.

Andrew,

We are just starting our move in the Houston market (and surrounding areas).  Based on allot of research here is what I found.

- Some areas of Houston are appreciating at $3K a month, so finding great cash flow is tough.  But there is allot of surrounding areas.

- The lending criteria is no different in TX than in the other states I own property in.

- As far as the rehabbing rules, they have allot of HOAs that manage what you can do, so you need to know the locations rules.

I hope you get some Houston investors to respond, I would like to hear from them as well.

Congratulations!  Good luck with your next flip.

That is what I would do

I live in NJ and own some rentals there, not a place I would recommend because of the landlord/tenant rules.  I own property in multiple states. We also have a turnkey business and own rentals in the Pittsburgh market.  Pittsburgh has good prices (Covid sped up the appreciation), is a good rental location and  has a young population looking to live there.

I have many investor friend doing flips in the Philadelphia market and doing buy and holds in the Leigh market. 

With all that said, you need to understand the market you are going into.  Build a team you can trust that understands the market.  Long distance housing for fix and flips or rentals can be a big headache without the proper team in place, it can also be the best decision with the right team.