All Forum Posts by: Jeremy Lee

Hi Edita,

This is totally possible here in Pittsburgh. I would note that the south side slopes are still in a time of transition, there are areas that aren't that great, still with higher crime and not too much gentrification yet. I would recommend you take a look at the BakerySquare area, there was a duplex around there for $390k, rents were about $2k, so that meets your one percent rule. Also try looking at Stanton Heights / Upper Lawrenceville, you could probably get 1.5% or 2% in those areas if you buy right. Those areas are the next to turn around, squeezed by Highland park and lawrenceville on both sides.

Check out the north side/mexican war streets, there are a couple really nice areas there right next to some shadier areas up there, lots of young professionals though.

I was at a rental flip down in brookline the other day, the 4 plex next door sold for $179k, so if the rents are about $750/unit, its about 1.6%. This one was right on the MLS.

The South side has a mix of young professionals and college aged students. 

Best of luck,

Jeremy

Hi Justin and welcome to BP,

In general, having outstanding creditcard debt is typically not advised, as the interest rates are high and this, as you experienced, is effecting your creditscore. If you are comfortable, it would be helpful to share more information, as the reason behind the credit card debt, is it to finish up the renovations to get your condo rent-able and cashflowing? 

- How long will it take for you to finish renovations to get your property cashflowing, a month, 6 months, a year? Once so, how fast will you be able to pay down your debts. This will require some simple math.

- Is the condo you are interested in selling currently rented, are you getting positive cashflow from the property? HOA, taxes and other fees should be considered. Is the property currently making you money, or is it an expense?

- What is the trend of the neighborhood of the condo you are selling, do things sell fast or sit on the market for a while?

I would say that if your creditcard debt is stemming from the renovations, to get your property cashflowing, the main consideration is how much longer this will take and how fast you would be able to pay down your creditcard. After this, see a credit repair specialist. 

If your debt is not stemming from renovations and if the SJ property is currently an expense ( no positive cash flow), consider selling; however a word of caution, unless its in a very desirable SJ neighborhood, if you want to sell fast you may have to sell at a discount. Also consider any capital gains taxes that may come of this property and if that would allow you to pay off your debt.

At the end of the day, its all about the numbers; however this is a touchy topic and sometimes people are uncomfortable with sharing that info.

Best of luck

Hi and welcome to BP,

One thing to consider is the cost of a multi-plex even in the worst areas of San Jose, most of them would be north of $1 million. You need to consider the rent that you are currently paying versus the rent that would would be receiving from a unit, considering expenses like taxes, vacancy, HOA and expected costs to rehab the property from one tenant to the next. Most recently, you should take a look at possible SJ rent control that may occur. These factors weighted against the price and monthly cashflow may mean that the numbers don't make any sense. Look up price to rent ratio and SJ/SF top the list. It would take a hella long time for you to pay off the property from just your rents compared to other cities.

Somethings to consider:

• are you looking to live rent free or with reduced rent or for positive cashflow?
  • If you want cashflow, consider investing in other areas - out of state, hard money lending or even discounted notes. Your ROI would be much higher.
  • If you are looking to live rent-free and know you won't be leaving for 10 or more years, it could be worth it to buy a property and househack, but saving for 5 years would really be hard, especially if the cash sits liquid while inflation out paces interest rates. During this time, you would want to investigate alternative investment strategies to get better ROI than just letting your cash sit, this might help you get to the down payment much faster, but again I would use this strategy if you know you will never move again.
  • Its ok if you loose money each month on the property aslong as you are either looking to stay for a long time or it is less than the cost of renting a place, usually as a general rule, you shouldn't do this, but SJ is just a different market, but you need to do your research to the total cost of owning a rental property. Your monthly costs aren't just the mortgage.

Good Luck!

@Amy Chen I think one thing to note about the shadyside/liberty area is the closing of schenley high school. This closure prompted the creation of Obama Academy in East Liberty, since students who attended schenley high were from shadyside and schenley heights, they were redirected to this new school.

East Liberty may be maxed out for flippers, but by no means is gentrified as there is still a sideable population of original residents from the non-gentrified era.

There are almost no good deals in the city with good schools, suburbs are the place to look. Checkout sharpsburg, lower prices, rental friendly and fox chapel school district.