All Forum Posts by: Andrew J Betzold

@Andrew J Betzold Hi what's spreadsheet magic? 

Are you willing to househack? With current interest rates you could still cashflow even in Mt. Lebanon if you've got an owner occ loan. Obviously stay away from the $500k things right on Washington. If you're going to be here 2 years you could pick up 2 single family homes in that time though! I cashflow about $200/mo (after accounting for expenses and stuff) on a 4 bedroom that I used to live on. I could get another $200-300/mo if I upgraded it. My current house would also cashflow and I bought it in March with 3% down (just can't get the wife to agree to moving the clan every year :D). Rents can reach $2200-$2500, so there's some room.

Pittsburgh is very interesting city. Come to ACRE www.ACREpgh.org when we open back up. It is priced by the street in some locations. We do well in the outskirts of the city. But the city is getting very expensive quickly so be on the look out. Hedge funds just got here and are buying everything up so deals are far and few between. 

If you are just looking for the 1% rule then Flats would be good. I live in Dormont and have over 50 units in Dormont and it's great, but getting expensive. As a new investor avoiding the MLS will come with some difficulties unless you are self sourcing, and even then it can be challenging.

Number 1: When you are new you don't understand the process which can make it difficult to navigate. 

Number 2: If you buy from a wholesaler you typically don't have inspection contingencies and your deposit is often nonrefundable. 

Number 3: Off market is likely going to need to be a cash, or like cash, purchase. The caveat being if you are souring leads yourself and can find someone that will seller finance to you, which though you hear a lot about on the internet isn't as common in practice in the B class and above 2-4 multifamily type areas.

Some other reasons buy off market can be challenging for a beginner. 

Buying is a good decision vs renting anyway because you are building equity. If you house hack a 2-4 unit it's the best decision to get started in my opinion because the numbers don't need to be as good for it to still be a worthwhile investment.