All Forum Posts by: Rex Petersen

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Lots of demand for GCs in Pittsburgh, I lost my favorite one when he moved out of state.  

One idea for funding is Hard Money, check out NextDoorCapital as one option in Pittsburgh that specialize in helping with your specific situation.  You pay a higher interest rate than a normal loan, but if you are fast at the renovation with your team you don't have to pay it for long so that can open up some opportunities for those who need the capital.

Are you looking for a General Contractor to coordinate the whole project?  Or specific professional subcontractors like electrician, plumber, hvac?

Hi @Jim K., I've successfully done ONE successful BRRR in Pittsburgh while living in Austin TX. Bought at SFH on the north side for $96K, put in 85K in renovations with a good general contractor and built a little team with some referrals from others on BP. Appraised for $250K on my cash-out refi, rented it out for $2600 to a guy finishing his fellowship at the a hospital close by, great tenant. Just re-rented it for $3000/month this year on a 2 year lease, great cash flow. Currently in the middle of a duplex renovation also in Pittsburgh, hoping to make my success streak a 2 out of 2.

Keys to my initial success so far: 1) my adult son lives in Pittsburgh and has been my boots-on-the-ground, handyman, and property manager.  2) got decently lucking with some good references to build a good team on round1, and took my favorite ones along to project#2.  I ask EVERYONE for references (other contractors, plumber, electrician, framer, hvac) and then I have several to select between.  3) I've had the patience and determination to push through all the permits/inspections and dealing with Pittsburgh laws -- I don't like that stuff but find it worth it as rents are high in the city.  For all they do in the name of "affordable housing" I think they scare away many investors and due to added costs and red tape that have the opposite effect of making things "affordable" but there is money to be made by those willing to persevere due to the limited supply.  4) both renovations have cost more and takes longer than originally estimating so I've built in a big enough buffer so I can still make money even if that happens.  5) I've flown to Pittsburgh often, but couldn't have done it without some reliable boots-on-the ground, no way.

And yes, let's get some McRibs and share stories.  I've enjoyed many of your posts Jim -- you're realism and humor and Pittsburgh experiences.   I still roll my eyes and grin at your "day in the life of a C-class landlord" story about getting called by the cops due some drug overdose and you walked in on the naked guy you'd evicted from upstairs who moved in with Miss Downstairs.  Thanks for the genuine sharing and colorful imagery!

Hi Hunter, welcome to the Pittsburgh market!  Living in SLC, what is it about Pittsburgh that has you interested?  And are you looking to learn creative financing or sharing, or both?

Welcome Andrew, what's the top thing you've learned you want to do differently going forward?

Hi @Karin G. sorry to hear about your property management stress, I've heard that 9/10 PMs in Pittsburgh are not that great.   I'm currently in Texas, with two properties in Pittsburgh managed by my son who is doing a GREAT job (and I'm his toughest critic).  He'd probably enjoy picking up a couple more properties.   Message me, we can talk and I can get you his info if interested.

Y&Q Home Plus LLC did a great job on a rehab for me in Pittsburgh. I would recommend them.

I'm about the open a SOFI account, the 2% saving rate seems better than most and I need a place to park some money while I wait for a good deal.  Made a few offers as things have been cooling but I'm and looking for a really good deal.  My last deal is cash flowing really well and now has me rather picky.

Anyone have a SOFI account already and wants to send me their referral code it says you get $50 and I get $25, might as well let a fellow BP member get the reward.  Message me in the next day before I open the account.

For selling a house or long terms rentals I agree with everyone that you want to stay neutral or the furniture of your tenants is guaranteed to clash and they will just want to paint anyway. But for a STR I think it looks fun and colorful and memorable and you already are furnishing it so stuff will match. I vote stick with it.