All Forum Posts by: Eddie Werner

If you don't feel safe I would not buy there.  If you add in vacancy/repairs/capex you would barely cash flow at all.  If you are having a hard time finding deals I would expand your search area to a 1-2 hour radius.

I think you need a better grasp on market rents (use craigslist, rentometer or other rental management companies listings).  Just because they put a sign out for $675/month does not mean that is what tenants will pay.  Will tenants pay all utilities, are they split? Compare similar properties and use a realistic rental amount in your analysis.  If you feel $620/month is what the units would bring then do your analysis based on that.  Don't get caught in the "well, I could probably get $675....and then the numbers would work, and I could pay more!"  I think we all fall into this when we start to get attached to a property.  Don't get attached or think you are losing a great deal.  You are only getting a great deal if you get it at the right price.  You might be surprised to pass on this now and in a few years it might be back on the market for a lower price because someone paid to much and didn't know what they were doing in the first place.

It depends on what similar units are renting for in your area.  Search Craigslist to see who your competition is.  If you have a nicer place and are charging less you need to raise it.    At a minimum always raise at LEAST $10-$20 to renew if you are at market rent.  You will have basic costs increase you need to cover.  If you do raise it I would also suggest making some improvements, they don't have to be big ones, just to show the tenants are getting something for the increase.

The cost to attend this event was well worth the knowledge shared.  What they charged probably covered the donuts, drinks and paper so you know they are not out to make money during their training sessions.  There was some theory for beginners and some actionable tips for seasoned investors.  I think the RE360 team is a great asset to Pittsburgh because they share what they are doing in the hope to help you achieve more of your real estate goals.

Another tip....if you have 10k to throw at repairs could that extra money get you into a B or C class area?  Putting that money into a D class asset will probably not really raise the overall value as house prices tend to average out at what the neighborhood will bring.  Just something to consider.

I always do an inspection contingency and if the property is occupied I add a "property must be vacant" clause as another contingency.  I don't like inheriting tenants because my manager was not the one screening them.

Thanks for sharing.  I think you paid for real life real estate education which I am all about.  Having done this deal your possibility of succeeding next time is exponentially higher!

I think you should get 5-7 bids from contractors to see where everyone prices the job then call references.  There are probably some BPers in your area that could recommend who to contact.  So much of what you listed depends on quality of material....carpet ranges from $1.50 - $4.00 sq.ft., blinds can be anywhere from $15 to $80...same thing with appliances you choose.

This deal is way to expensive for me.  I would research your local area (1 hour radius) and start to map out the different towns and their home prices, rents, % of owners vs. renters, industries (growing or depleting jobs) to get a better understanding of your market.  I have to think within a hour drive you can do MUCH better then the deal you are currently looking at.

Check out local PM sites to see where they have listings and compare the rents they are asking for against the city data you were able to collect.

A majority of this country has no self control when it comes to saving money and monitoring (or making the tough decisions to improve) their financial situation.  401k, Social Security, even tax refunds are for people who have no control over their own urges to spend money.  If you are good at saving money and reducing monthly expenses then invest in buy and hold rental properties.  People will always need somewhere to live so your risk is minimal if you know how to buy right.

If you get your pay check and a week later wonder where all the money went then you better have a 401k or you will be dead beat broke come retirement.  I think a majority of families don't realize that if they get a tax refund they gave the government an interest free loan throughout the year....what they think is a pay bump come refund time is really money they should have had early on.  The problem is families depend on this return because throughout the year they didn't have the motivation to save to begin with.  This should not be a safety net but it is for a lot of people.

You can either control your spending habits and lifestyle or you can't.  If you can't then you will need a 401k, social security, etc.  If you can save money and control your money then you have WAY more options for making a better life for yourself.