All Forum Posts by: Jerry Kisasonak

Congrats Richard! And YES, Pittsburgh is a great market for the BRRRR strategy.

If you're considering building a portfolio/empire here in Pittsburgh, let me know what area(s) you're considering so I let you know when I see something that fits your model.

I would, as Anthony suggested, find a local KW office.

You might want to start by asking him (casually) what his plans are with the proceeds from the sale. If he plans to reinvest it elsewhere or has no current plans at all, he may be open to taking payments. You'd just have to ask and see. 

@Anthony Angotti Yes, we do have our Meetups. They are east of the city - White Oak to be exact. We'll be getting together next Thursday at The Rose in White Oak at 6:30Pm. It's open to the public and there's no charge - but we do ask that you support The Rose by ordering food or beverage. Thanks for thinking of me!

Out of these areas I'd say Jeannette and Latrobe are the better of the lot. Latrobe being the best of them.

We see homes in Monongahela, Donora, Charleroi, etc all the time in the 10-30K range and some are in decent condition. But in my opinion these areas are more trouble than they're worth, and I don't see much light at the end of the tunnel for them in terms of recovery. Remember, just because you can buy the house very cheap doesn't necessarily make it a good deal. There are plenty of other areas that have more signs of life where you can still find great deals. Not that these other areas will definitely see appreciation, but at least they look like they'll stay relatively vibrant/populated moving forward.

Go with hard money if you have to the first few deals. Then you'll have a track record and be able to attract private money. Remember to document your renovations (pictures, numbers, etc). And remember, hard money lenders will really look over your deal before committing. It's great to have a second pair of eyes looking over the numbers especially when you're first getting started. They can save you from making a poor choice. Expensive money? Not really when you consider the experience you're getting. And, it's not like partnering with someone who has the funds where you'll likely need to split profits 50/50. Some things to think about...

Welcome to BP John! We also live and invest in the Pittsburgh area. In addition to the local REIA's, check into local real estate Meetup groups (Meetup.com) and there's also area-specific Facebook groups. Check those out as well to get connected. Hope this helps!

Maybe I should consider school districts more closely, but honestly to this point I haven't. Here's how I've viewed it: If School District A has a street that the homes are selling for 100K and School District B has a street that homes are selling for 100K - what do I care if it's school district A or B? Home values are home values. And if the rents are the same between the two properties the ROI is the same as well.

Both Mckees Rocks and Mt Oliver are depressed, high crime areas. Carrick has gotten bad too over the past 10-15 years. You could also add Sheridan, Wilkinsburg, and McKeesport to the list. I wouldn't (as suggested) spend more money in those areas (40-60K). Doing so is just putting more capital at risk and reducing your ROI, and there's little to no chance for appreciation in those areas. Besides all that, resell can prove difficult - so there's lower liquidity.

If you're going to spend more, do so by finding deals in more desirable areas (worst house in the best area idea). Then you can more easily attract good tenants, have less management issues, have a stronger chance for appreciation, and have better liquidity. 

I could be wrong, but it seems like you'd be paying retail for this property. To eliminate risk, we've always bought properties well below their intrinsic value. Then if the market drops or if you need to liquidate, you can get out and still make money - or worst case break even.