New Pittsburgh Investor

[Troy B.]

Hello fellow investors,

Long time lurker, first time poster. I'm native to the Pittsburgh region currently investing in Allegheny and Butler Country in Multifamily Properties, commercial and residential

Quick RE Background:

• General Contractor for a few years
• Excavating / Demo - Operator for a few years
• Civil Engineer / Architect - currently

My current market contains two parallel pipelines.

On the residential side, 7% cap and above properties, with around 15% cash-cash returns with conventional financing (and proportionate for 3.5% down FHA, which lowers cash flow to due PMI, but increases Cash-Cash due to lower down payment).

Using FHA backed financing on 4-unit properties in Pittsburgh has presented a few challenges due to the larger in-flux of Cash buyers (international and regional), and mis-information given to sellers about FHA financing. I've been in numerous bidding wars on 3 and 4 unit multi-family properties in Allegheny county, and learned a lot in that time.

Due to the recent challenges, and expanding my knowledge, I've opened myself to cities with high growth, sustainability, and median house prices. Hawaii and Colorado have been recently added to my searches with a few relationships set up in each region. I welcome anyone with experience in those regions, especially using FHA Backed Financing for owner-occupier multi-unit dwellings, to contact me.

I've passed on MANY good SFH/2/3 units in the past years, but am sticking to 4 units for the first residential purchase. This will allow me to leverage the bank to the maximum extent available on purchase 1, then move to lower-priced properties while utilizing conventional financing for properties 2+. Cascading purchases is key to my overall plan ("snowballing" as I hear used often).

In Parallel to the FHA 4 Unit Owner Occupier plan, I also have used capital to flip a few properties with a fellow investor. I hope to continue this and do so with more fellow investors.

I am also involved in commercial RE in Cleveland, Ohio and would love to get involved in Pittsburgh.

I'm a big proponent of learning from experienced people in all facets of life, so I encourage any scrutiny/advice to my current plans.

I look very forward to meeting, discussing, and building relationships with local and distant investors.

Cliff notes:

• Local PIttsburgh individual looking to further invest in RE, residential and commercial - Buy & Hold & Flips
• Residential - Currently using FHA for 4 unit purchase
  • Pittsburgh - Allegheny and Butler County
  • Colorado - Denver and Boulder County
  • Hawaii 
• Commercial - Looking to partner (have capital)
• Flips - Looking to partner (and can labor)

"The more I learn, the more I realize how little I know"

Take care everyone,

Troy