All Forum Posts by: Jack Macioce

I am in the same boat.  Getting ready to have my first rental property.  I'd be happy to exchange ideas and talk real estate anytime.

Definitely came to the right place.

If you don't mind me asking, where is the house located? Closer to Duquesne Heights or Shiloh Street?

Mt. Washington is very interesting and crazy.  

I listed my house approximately two weeks ago (3/1.5 located in Duquesne Heights).  Feel comfortable that my price range is reasonable based on the comps I reviewed.  The interesting part about these comps were that some houses sold within days, while others are either still on the market, or sold after a months of being listed.  Top end of my range is approximately 34% higher than the price I paid for it in 2012, while the bottom end of my range would be 24% higher.  Seems consistent.

I received two offers; however, they were very low and included seller assist. The financing I saw on both offers were FHA. A comp, which is currently under contract, received asking at around $185K with 6% seller assist.

With that information, I'm trying to decide if it's worth my while to hold and rent as opposed to sell.  I think the position you are is a good one.  As Josh stated above, make sure you estimate costs to rehab as accurately as possible.  Finding a good real estate attorney would help as well.

@Ian Hoover, what markets do you work in around Pittsburgh?

Welcome!

Just joined BiggerPockets a few months ago myself.  Mindy is correct, there is a big PA presence here on BiggerPockets.  And it seems like there is a big Pittsburgh presence here on BiggerPockets.

I work for a real estate investment firm in the area; however, I'm looking to get into REI on my own, primarily buy and hold for the time being. Hopefully somewhere down the road we can work together.

I use Mint and a spreadsheet as well.  I primarily use Mint to track my expenses by category; however, I record everything to a spreadsheet.  On my spreadsheet, my net worth is calculating automatically on a monthly basis.  I like to be able to compare my expenses by category to my total income (percentage of income) for the month to make sure my spending habits don't change (although I don't mind when my savings percentage increases).  In addition to net worth, I like tracking my expense as a percentage on income.

I'll have to check up on PersonalCapital, but is it pretty similar to Mint, with the only difference being the investment analysis functions?  I like Mint primarily for tracking expenses; however, I'm not sure what else it is really good for, unless I don't use it to it's full potential.

He has completed several single-family homes, and two duplexes.  Again, he hasn't asked for any monetary investment, just some assistance in analyzing what to do with the project.

To get an understanding of the construction costs, I think that the first step would be to obtain a couple bids from contractors.  There are already some preliminary drawings.  I know there are other things to consider, but right now, I'm just focusing on the construction aspect of the project.

There seems to be a lot involved with new construction.  I was recently asked to assist with a development project.  Based upon my discussions, this project started back in 2007-2008.  For obvious reasons, after the site was acquired and preliminary work was performed, the project was "postponed".  Now, in 2015, this developer wishes to start the project back up, or at the very least, analyze their options.  This "developer" is an individual investor, who has developed a few houses on his own.

The original plans were for the construction of either apartments or condos, and I think the developer's intent is to come up with new, realistic numbers (hard & soft), and determine if the market supports the margins. 

Currently, I work with a real estate development, management company and have been primarily involved in the accounting sides of things.  Although I prepare budgets and proformas, I do not estimate construction costs (I rely on our engineers/construction guys).  When I was originally asked to assist with this project, my understanding was that I would help with the numbers, projections, etc.  However, the developer has asked me to assist with preparing a realistic development budget (i.e., new construction costs).  The developer has a civil engineering background, so I'm not sure exactly how I would be able to help estimate new construction costs.

I would like to help this developer, as I think it would be good experience, but its starting to look like my lack of experience may prevent me from my assistance.  At the very least, I plan to research the market to determine the price points for either apartments or condos, and then maybe back into the costs with an assumed return to see if it's even feasible.

I'm thinking the options for this project are:

- Continue with the project as is (construct and sell apartments/condos)

- JV with another developer

- Sell the property as is

How should I proceed with this project?  I should also note that at no point was I asked to help fund the project further.

I believe any response to this would at the very least answer some of @Joshua Chambliss questions above.  Seems like the best approach to investing in development projects would be to work with someone who already has a few projects under their belt.

Welcome Nick!  I'm a newbie myself.  Pittsburgh is definitely a great city to buy rentals, as there are a lot of nice neighborhoods.  My wife and a few buddies went to Pitt.  There are a lot of great places to rent in Oakland and a lot of bad places to rent in Oakland.  The bad places to rent in Oakland, however, can usually be blamed on the landlords/owners.

Maybe instead of focusing on student housing, you focus on neighborhoods that attract young professionals? 

Thanks for the welcomes!  Can't wait to get started.

Hello!

My name is Jack Macioce and I live Pittsburgh, PA.  I joined BP a few months; however, I started to become active about a month by watching webinars and listening to podcasts.  I was originally an auditor with a CPA firm in the area; however, I wanted to learn more about real estate, so I accepted a new position with a real estate investment company a few months ago (which is why I wasn't active when I joined).  RE investment has always been an interest of mine.

I'm still reading and learning as much as I can.  My goal is to buy one rental property within the next year or two (to break the seal), or at least begin to rent out the property that I currently own.  Looking forward to meet other RE investors in Pittsburgh and in the BP community!

Thanks,

Jack Macioce