Hello! New to BP, Ready to Invest, Where to Start (Pittsburgh)?!

[Quiana Hayes-Perciavalle]

Hello Everyone, I am new to BP and ready to begin investing! I am a lifelong resident a homeowner residing on the outskirts of Pittsburgh, PA (airport area). My husband and I would like to begin investing in properties within Pittsburgh and surrounding areas sooner than later. I have been researching, participating in webinars, reading books/blogs/forums, listening to podcasts, browsing the MLS, etc... attempting to do my due diligence. I've realized this process can become paralytic if you don't make strides towards taking action. We are ready to get out there and start investing!

We are interested in acquiring multi-unit rental properties that will appreciate in value. We have some interest in areas of the city such as Southside, Oakland, Mt Washington, etc.... Starting out, we are interested in properties that do not require renovations. I am doing more research into turnkey investment properties as well. As we establish a network and resources, rehabbing/renting as well as flipping would be an option. At this point in time the thought of diving rehabbing is a bit overwhelming (securing funding, contractors, etc...). Any insight on this would be appreciated! 

Additionally, any insight on financing would be helpful. I've read forums mention local banks, others recommend hard money lenders and others reference private lenders. My credit is great, debt consists of student loan, mortgage and car note. We are partnering with a friend for this venture and will work to bring the necessary money to the table (we don't have an excess of savings). I'm really not sure where to start but want to have a logical approach.

Also, I noticed there are 2 networking groups that seem to be popular in our area, Pittsburgh REIA and ACRE of Pittsburgh. Any feedback on the difference between these groups would be appreciated, as I am trying to determine which I should begin attending (one or both).

Thanks!

Quiana

[Anthony Angotti]

Hi @Quiana Hayes-Perciavalle

Both investing groups are good to go to. Pittsburgh REIA has subgroups focused on different areas and parts of the business that would be worth attending once you find a niche that you want to operate in.

The best deals take some solving problems in the form of deferred maintenance, tenant issues, etc. 

Regarding renovations it might seem daunting, but it's part of the business. In some ways as long as you buy right to account for that cost it actually gives you a bigger cushion. Reason is that you get a better deal up front. Depending on how long you plan to hold a property, even the pretty ones will have things break eventually. If your cash flow is already slim just on the taxes, insurance, loan payment side then that puts you at more of a disadvantage. If you bought a property that needed work in the first place you'd get it done up front and still have a lower basis on your financing. In addition you'd better know how the major mechanical systems were maintained because you were the one to replace them in the first place. 

Just playing devils advocate. Buying turnkey is fine, but you need to know that either way you are paying to have the work done on the property. If you pay that in the form of a higher purchase price and you take a 15 year or 30 year note you may still have to replace all those things again if you hold the property that long anyhow.