All Forum Posts by: Max Feinberg

@Jarrin Benson Welcome to BP!

@Josh Caldwell when/where?

@Bryan Johnson Hi Bryan! I agree with what Gary says in that Pittsburgh is a great market to implement the BRRRR strategy, but it is very important to work with someone who knows the intricacies of each neighborhood. I like that you are thinking of going into the Multi Family side of things as there are plenty of great opportunities with those in the area. Good luck in your search and please don’t hesitate to reach out with any questions! Max

@Thomas Staub Hello Thomas! While Pittsburgh is definitely one of the better markets for buy and hold investors, I would disagree that it is “at the bottom” assuming you mean prices are at their lowest. Now, just because they aren’t at their bottom does not mean there aren’t good deals to be had. There are quite a few depending on your price point and strategy. Feel free to PM me and we can chat! I’d love to further talk about the Pittsburgh area. Max

@Steven DeMaiolo Welcome! Happy to hear you’ve got the bug and are looking into real estate investing. Out of curiousity, how are you arriving at that monthly expense number? Do you have a breakdown of the costs that you are using to get that number? That will help to understand the viability of this particular deal. Max

Hello,

As has been mentioned before me, I don't think there is one single, correct answer. I agree with Alex in that if you have 50k total to invest, the suburbs of the aforementioned areas may be best. You should see a decent return in the suburbs of the Pittsburgh area if you choose your area and properties wisely.

Max

Awesome thanks for the reply Eddie. So, for example, if I wanted to make it as simple as possible meaning no balloon and no down, would this situation make sense:

I purchase at $38000

I set repayment period at 5 years based on a 50k future assumed price.

I set an interest rate of 10 percent (these are all just hypothetical mind you)

50/5 = 10k a year in payments from tenant

10k @10 percent interest makes it 11k a year in payment

11k/12 months = 917 a month 

So after 5 years, the house is theirs and I have made 17k (minus associated costs). Is this a logical train of thought? Reasonable numbers? What would anybody here recommend doing differently?

*** I am well aware of the monthly costs of managing the property/maintaining. These numbers are intended to be as basic for now as possible just to better understand

Hello Everyone!

So I have an interesting idea that I would like an opinion on. I am a realtor in the Pittsburgh area and I just met a client who really wants to buy a home, but has a very low credit score as well as minimal money for a down payment. This woman and her husband are extremely nice people and apparently have a had a pretty tough past. For this reason, I would love to help them achieve their dream of home ownership in any way that I can.

Just today, she sent me a $38,000 dollar house which is in a decent area, but only able to accept cash and conventional financing which they are obviously unable to do. My thought/question is this...if I could purchase this property in cash myself and offer them an owner financing situation, what would be the best way to structure this? I do some investing myself on top of my real estate business, but have never done anything with owner financing. How would you set up a deal where they do not have to pay much down and I am able to make a reasonable cash flow (nothing crazy obviously on a $38,000 deal).

Anybody with experience in this area is welcome to chime in!

Hello Eric!

I just saw this thread and wanted to follow up with you to see how everything worked out. Did you purchase the property? Do you have any additional questions? I grew up very close to Verona and do a lot of work there as well. PM me if there is any way I can help!

Max

Hi Dan! Nice to "meet" you. Please let me know if you have any questions and I would be happy to assist you! I mostly work in the East side of town, but do a little bit of business everywhere.

Best of luck to you!