All Forum Posts by: Anthony Angotti

There's not going to be a lot of demand for that. 

I can't say that there is any area NOT to invest in. Firstly as an agent you just can't do that. 

That and every investor has a different niche. Additionally almost every neighborhood in Pittsburgh has submarkets. So what some would call a D class neighborhood has pockets that might be C class. Vice versa as well and same applies with B and C, A and B, etc. 

However, if you use the ACHA fair market rent standards you can get a bit of an idea. 

https://www.achsng.com/docs/FM...

Obivously the lower the rent the less valuable a neighborhood, however you'd also have to look at crime stats and if the median income is going up or down in a given neighborhood. Typically I'm only going to consider areas where crime isn't too bad and median household income is at least flat, but never neighborhoods where it's going down (unless we are talking neighborhoods with median HH income over 60k or so). 

On that chart generally spekaing you'll see D and C class neighborhoods in the 0-800 range for a 1 bed. B class in the 800-1000 range and A class in the 1000+ range. That's not a hard and fast rule, but it's a litmus test so to speak. 

 Welcome to BP and good luck! If you need anything don't hesitate to reach out. I have over 100 units in Pittsburgh and have done single family, multifamily, commercial multi, and office. 

I love real estate and this is a great place to get answers and help!

@Alexis Green no rules city wise, but depends on the condo building. A lot of them don't allow it. If downtown that's one thing to consider. 

 The gains on your primary residence are tax free if you've lived there 2 of the past 5 years. 

Until that changes Grants stance on this is misguided at best and purely idiotic at worst. 

Im sure there's some scenario in which it works in a few high cost of living areas in the county, but for most of America. It's terrible advice. 

Mark Ferguson has debunked this statement in longer form and much more eloquently than I care to get into on the forum. Just go read some of his stuff on home ownership or follow him on Instagram, where he talks about this very stance of grants, at length.

Hi Tony,

I own over 100 units in Greater Pittsburgh Area and it's gone well for me. 

Im local and have a staff to manage my properties. 

The caveat here though is that you have to have realistic expectations. You're going to be paying a property manager (should pay a good one not a cheap one), you're going to need to pay a contractor to do everything, and you won't be here to oversee them closely so you'll need to pay more for more reliable people. 

You can find success out of state but expecting the returns that people sell will lead you astray. $50-100 per door cash flow in solid B/C class neighborhoods after financing and all other costs is a healthy expectation. I underwrite deals conservatively so you might see other people say more than that, but I'd rather be pleasantly surprised than disappointed. 

Also keep in mind that when you read something on the internet people always talk about their best deals, not the average ones. The average ones still build long term wealth. It's a marathon, not a sprint.  

Below average schools, lower income to low middle income generally, C class in the better parts, little to no appreciation, buy for cash flow solely. 

Some parts can be worse than C class so you'll need to do some research on which parts are which. 

 Your lease should have provisions for the tenant keeping the place clean generally. 

Id hold them accountable for that as other have suggested. Also get pictures of the filth because next you can tell them that you will send an exterminator but they will be financially responsible for it. 

If you don't want to go that route you can likely buy some exterior poison bait stations an shave a handyman place them around the property. However if the tenants aren't cleaning up the bait stations won't work. 

I don't know your area but that quote seems really high? What are they doing as part of that?

Pittsburgh REIA and ACRE

 It's a cash flow analysis pretty plain and simple. 

Even if tenants pay water/sewer usually the owner pays and then bills the tenants back because it is generally lienable if not paid. 

It's pretty typical for landlord to pay water and sewer in Pittsburgh. Even if submetered you'll see most active rentals only charge electric and gas if you take a look at your competition. Exception being single family homes.