All Forum Posts by: Alex Deacon

@Shimon Gorodetski your best bet is to focus on the perimeter of a C class area. If you can find a good neighborhood on the perimeter of a C neighborhood you will be able to attract a better renter clientele and the resale will be more profitable for you when you do decide to sell. The challenge is getting to know the areas well enough that you realize what a C plus area looks like. That will come with some professional guidance and your own market experience here in Pittsburgh

@Chris Nocera I do have a lot of experience. There is a reason why a property doesn't sell. Normally it is so bad that there is no value. Most properties at the sale are in very poor condition. Unless you can drive by the property and possibly see inside somehow I would not even go down this rabbit hole.  

@David Lee Hall, III I could not agree more. @Clayton Hepler just know that if it doesnt cash flow very well then stay away from it. These areas are management intensive and you can rely on a gut feeling that the next hot area will be Homewood.It could be and it could also not be. focus on your cashflow numbers now and if it turns the corner in the future then your good investment just turned into a great one

@Chris Nocera Mckeesport is very rough. Just know what you are getting into. There is a reason in such a sellers market that you can still get properties cheap in McKeesport. I am not saying you cant make money but just understand the dynamics of each investment and each area before you move forward.

@Dan Bowen those are two very good reasons. I also think that based on what markets have spiked here in Pittsburgh over the past ten years that Penn Hills does not fit that mold in any way. I think you will see the standard rate of 3% appreciation  in Allegheny county will apply here. Although recently Allegheny county has gone up 20% in a three year period, prior to that it has been around 3%. There is a housing bubble coming but when is the question. 

@J Trucha i would first check with the city. See if there are occupancy permits for a tri plex. If you want to do any renovations changing the unit count make sure you get approvals from the city of Pittsburgh first. It may come back to bite you when you sell or if there are any complaints from neighbors. What is on the county website may not reflect the legal use of the property. I have had many clients get burned by not following the chain of command in similar situations.

@Jeremy Taggart is starting a new investor meetup. I would reach out to him.

@Michael Wolffs and @Nikhil Raverkar property management is the worst part of owning real estate. I run a firm in Pittsburgh and we manage over 700 units. If your portfolio is garbage and you are a garbage landlord then you will get garbage service. If your portfolio is an easy one then most likely your service will be acceptable. We have had our share of bad clients and bad properties and we have also made mistakes and have provided poor service in the past as a company since 2002 but generally speaking its all about setting the expectations, your portfolio quality and of course the quality of the property manager working on your portfolio. 

@Daniel Branken the squatter can stay in that house for up to a year if they know the system. Perhaps in the contract you can put a contingency stating that the current occupants must sign a cash for keys agreement. This way at least there is a good possibility that they will move quickly after closing. There is no guarantee of course. Also if you get the property at the right price that helps. The unknown is how much damage will they do to the home prior to moving out and how closely were you abel to look over the home before making your offer. A lot of things to consider before moving forward. Plus the attorney fees if needed could be a few thousand if the tenant abuses the system and you are into the appeal process. 

@Dan Bowen penn hills is a strong rental market but I dont see that area changing dramatically for the better. You would buy in Penn Hills for cash flow only.