Closing on 2 properties in Pittsburgh !!!

[Richard Moreno]

I have been looking for a good place to buy a property to try out the BRRRR strategy, decided on Pittsburgh. So with the proceeds from a flip that I sold in Boston, I took a trip to check out some properties in Pittsburgh, looked at 12 houses in the 2 days that I was there. I was only going to buy 1 house but ended up buying 2 houses! Thanks to BP I was able to find a property manager ( @Neil Metzger ) who will also renovate both properties ! And then get them rented ! And of course Refi and repeat.

I was going to use a hard money lender to finance the deals but since I offered cash, they were able to do closing in a couple of weeks! Didn't have time to secure a lender so I just left it as a cash deal, so hopefully we can turn it around quick so I can refinance it.

They both should cash flo nicely

[Richard Moreno]

@Aaron Cullen, this is the first time that I have bought something in Pittsburgh, but so far I feel comfortable that I made a good choice here. Using the BRRRR calculator I came up with some numbers, although once I get them rented I would have to tweak them a bit I'm sure.

House #1

Paid cash $30k ,

maybe $10k in updating,

expected rent $1000

cash flo  $431

proforma cap rate ;  12.72%

cash on cash ROI ; 17.5%

total cash invested after refi  $0  !

House #2

Paid cash $55k

around $10k in updating

expected rent $1100  ( maybe $950, not sure yet )

cash flo  $417

proforma cap rate ; 10.25%

cash on cash ROI ; 12.6%

total cash invested $7,727 !

These were done with 30 year mortgage but not sure if I should do 15 years

Hope this helps.