What would you do...

Question

Alex Deacon · Answer

@Nick Portillo I would agree with @Jim K. also. Just be careful with that budget you are buying in c minus or D areas usually. We have bought combined with partners over the last 20 years thousands of properties here. You dont get something for nothing but in Pittsburgh you dollar can go a long way compared to other markets around the country.

Jim K. · Answer

There are really good people who comment regularly in this forum who could help you with that. I invest in low-cost rental areas where you really do have to go street-by-street to find a superb deal. For out-of-towners, without boots on the ground that you are willing to trust completely, it's not quite so straightforward, for obvious reasons.

Anthony Angotti · Answer

@Nick Portillo any reason why no financing? I understand the risk side of it, but you could buy an OK building in a C class area in Pittsburgh if you used that money to finance something.

I realize your question was not Pittsburgh specific though.....so sorry if this whole thread got blasted by Pittsburgh people haha. One person posts the keyword "Pittsburgh" and the whole crew shows up I guess.

Alex Deacon · Answer

@Nick Portillo I like the advice of @Jim K.  Until you have a very good sense of the areas and then the street by street knowledge of where to buy AND have your team in place then out of state investing is 10x harder than if you were here everyday. Where to invest is super complicated to answer but with your limited funds you will able to break down areas based on the average price of homes. You will be only looking in a hand full of markets in that price range so it will be a little easier to gain the knowledge and make a decision.

Nick Portillo · Answer

@Anthony Angotti I am looking at 2 different strategies actually:

1. Buy all cash and pay for repairs... Then refinance to get my money out

2. 20% down payment and then get a loan for mortgage and repairs

What are your thoughts?

Jim K. · Answer

Well, considering that I have bought multiple properties in that range for cash with no financing, including one where the tenants moved in for $650/month three weeks after closing on the place, I'd be doing it in Pittsburgh, Pennsylvania.

What would you do...

Most Popular Reply