All Forum Posts by: Harry Schoeller

Sky Hoyle who is your agent and what brokerage are they an independent contractor for? I'm concerned with possible guidance you've been given. And the single family homes on the backside of Mount Washington are selling fast. You are absolutely right. They are selling fast to newly married couples and young urban professionals as starter homes. Young people who will be turning these houses back over in 3-5 years. You are seeking a property investor. Someone who intends to hold the property much longer than the time a newly wed couple would. I'm assuming you do not have access to the MLS and I assure you as great as Zillow and Trulia are they are not always 100% accurate nor do they update immediately with the Multi Listing Service. As you'll have read in my earlier posts you are not asking an unreasonable amount of money for your property. But you're not asking for a bargain that would've sold in the speed you were so hopeful of. I've seen clients homes sit at a perfectly fair price for 8 months before sale. If I ask if you want to buy this brand new corvette for a perfectly reasonable 80k you may or may not buy it. You might take your time and think about it or see if the price drops if it doesn't sell. If I offer you this brand new corvette for 60k you're a lot more likely to jump on it because it's a DEAL. Private home owners aren't concerned as much with a deal as they are with finding a home. The place that suits them and feels right to them. An investor doesn't give a damn about if the building feels like home or is comfortable or their dream home. An investor looks at cold hard numbers. And while your numbers aren't outrageous they also don't give an investor any reason to JUMP on it because there's 500 multi families in this city offering the same or better return. You said you have substantial equity in the place. If you've made a decent return on your investment then just price the place at a number that will sell quickly and move to the next project. If you'd like to find a property with higher return and more cash flow I assure you I already know of several. I'd be happy to help you to find properties that will generate the kind of returns you're looking for. But as of right now you have 3 decision. 1.Hold the property longer and hope the Mt W market stays solid. 2.Lower the price to something that will sell rapidly so you can move to the next project. 3. Stay at the same price but learn to accept it may sit for some time. And if it sits for too much time then accept what the market is telling you and lower the price. I don't mean to be disrespectful. I know sometimes it can be frustrating. But with the right amount of patience, expectations, and proper guidance, you will find yourself happy with your future success in real estate.

Hey Greg Thibeaux . Welcome to the community. I was born and raised here in the Steel City and know the market well. I hope you and your wife the best of luck. If you're truly interested in flips and investment please feel free to contact me. I'm an investor friendly Realtor with Coldwell Banker and at any given moment have my eye on a few good deals. Always happy to have partners as well. Anyways, enjoy the forums and wish you success. Harry A Schoeller Realtor Coldwell Banker 5887 Forbes Ave, Squirrel Hill Pittsburgh, PA 15217

Sorry for the poor grammar structure of my last post. This is all before my first coffee lol and Jack Macioce I hope this gives a better explanation of valuing investment property based on income. I'd recommend "The Millionaire Real Estate Investor" By Gary Keller. Yes, he's the founder and owner of Keller Williams Realty. His book is a step by step instruction guide to build wealth in real estate and it's a good one. Real estate is the oldest proven method of building wealth in America. That being said, it doesn't have to be one big mystery. The people who have done this and succeeded like the wonderful founders of BP have tested proven and laid out systems that if followed properly will inevitably end in success. But like Warren Buffer you must be an intelligent and shrewd investor. You must not let emotion or short term gang blind you from the proper systems of long term investment. Good luck! Feel free to contact me with any questions or concerns. Harry Schoeller Realtor Coldwell Banker 5887 Forbes Avenue, Squirrel Hill

In the city of Pittsburgh where I was born and raised your average investor of multi-family property expects a minimum gross return of %10. The lot of you can argue this with me or throw out your own opinions all you want. In nicer high end areas like cranberry, squirrel hill, the strip district, shady side. People will accept less. Closer to %8 gross return on investment. But these are also areas with high appreciation. Your property may not make as high ROI a year in cash flow but the value of the property rises substantially as these are solid areas with no sign of decline. In an area like Mt Washington unless you have a view like was stated earlier then your property will not see the kind of appreciation it would if it was sitting in squirrel hill. If you rent each unit for 900 a month that's 1800 a month. At 90% occupancy rate then your property is not priced unreasonably. But it's not a bargain. It's just a rental property priced at the right price. It will sell in time but 45 days is nothing in the real estate world. Especially on Mt Washington where I'm sorry to say some of the posts are correct is no longer a "hot" neighborhood in this city. Especially the back side. Your property is not priced incorrectly. But if you were expecting to sell it in 45 days that is something you should have communicated with your agent who could have explained that for a sale that quickly you need to be offering people a real deal. Say 12-14% return on investment. Move price down to $180k and watch it sell quicker. And make sure your agent has the average rents stated in the listing. Hope some of this helps.

What comps are you looking at in Mt Washington? The value of a rental property in Pittsburgh isn't always valued as much by comps as it is by gross average income. Do you have a proven rental history for the empty unit and if so what is the average rent you are able to get for it?

The property is two separate homes on a single parcel. I represent the owners and they are highly motivated as they are seeking to move nearer their daughter. The main house is owner occupied and in good shape. In its market could be rented for around 750 a month. The second house used to be a small church. It was converted to a 2 bedroom house with cathedral ceilings and is currently rented for 650 a month to reliable tenants. Starting price is $124,900 but ALL offers would be considered. No mortgage currently on the home and looking for a quick sell. Home owner has spent a lot of time appealing with the township to keep the taxes LOW. Any and all inquiries please contact me at 724-531-5096 or by email at [email protected]

Hey Chris, I'm more than familiar with the Scranton area. However, I'm not going to lie by saying I know much about the market there. I'm a realtor in Pittsburgh, PA. And I can tell you with all honesty that if you're looking to invest in properties for rentals that this is the market to do it in. There's multiple sources placing us as one of the best markets in the east right now that I'd be happy to share. Dealing with investors and doing so myself I know the fear of putting your money into anywhere a distance away. But being as the distance from Scranton to Pittsburgh is not a matter of a short drive, I'd highly recommend you consider putting money into the Burgh. I know this doesn't address your original request and I'm sorry for that. But if nothing else I help it's something to think on. My office just sold a duplex with a gross average income of 19,800 for less than 140k. Have a great Easter Chris! And good luck!

welcome to the community Mark! Don't forget to listen to the podcasts.  If you're ever in need of an investor friendly agent I'm always happy to help. Otherwise, enjoy all BP has to offer!

I work with Coldwell Banker by the way. NOT Caldwell. My darn Mac and it's autocorrect 

Hi Charles,

      I'm a REALTOR with Coldwell Banker in Pittsburgh. I track expired listings daily and direct mail market to some. If you're looking for an agent to work with to pursue expired listings I'd be more than happy to assist. As well as i work with a Brokerage that makes everything as seamless as possible for a consumer. Feel free to contact me via my profile information if you're still interested and haven't found an agent to suit your needs. Good luck!