All Forum Posts by: Ken D.

@Patrick Orefice I'm actually ran across this when doing some reading on Pittsburgh before I flew out there. There's a lot of effort on revitalization goin on out there and one of the things the city is trying to do to help is educate families on how to pass their assets on to their next of kin.

I can't find the article at the moment, but I believe I found it on the next pittsburgh website. Sharing the general link because it has interesting info on activity in Pittsburgh for those interested.

https://www.nextpittsburgh.com/about/

@Andrew Johnson Very good points. But even with these disadvantages with OOS investing there are many successful investors that do this. I'm hoping to figure out how they do it, hopefully with some help along the way...Maybe I'll have my own secret sauce some day.

The main reason I'm interested in OOS investing is that although I'll never be as good as the local guys, it will allow me to be flexible with where I choose to invest if I figure out how to do it. 

@Patrice Penda @Andrew Syrios @Jay Hinrichs I would prefer to invest in my own backyard as well. It just posses larger hurdles than OOS investing based on my current knowledge of RE rehabbing and raising capital (which is why I'm here to hear other's opinions as well!). However, I plan to heed your caution and start smaller so that I can recover more quickly from my mistakes.

@John Leavelle Mold and water damage are areas that I am most uncomfortable with a the moment. In SD and even Bay area there isn't much flooding or serious water damage to the extent of some of the houses I looked at. But to @Patrice Penda point I see the potential in some of these homes. I realize I'm looking through the goggles of inexperience, but it's hard for me not to get excited about a property that is under $10K who's ARV is $100K with rents around $1K or more if it's multifamily.

@Jay Belcher I can fully appreciate your comment. I flew out to Pittsburgh in December to check out neighborhoods. Loved it while I was there but very strange driving through very nice houses to literally the next block drive through rows of abandoned buildings and homes.

Thanks Andrew! This is the type of general feedback I was hoping for. This can help me formulate a better idea of what I should even look into and hopefully save some time for myself and others.

For the $100,000 number I assume the gut doesn't include any foundational surprises or major framing work. What about plumbing, electrical, or water damage for houses that have been sitting with bad roofs for a few years?

Absolutely, the numbers have to work and also agree that Pittsburgh is not the best place for new construction based on the areas I visited and researched. I would primarily be doing BRRRR there. It's just really weird seeing houses falling apart right next to some good looking properties, especially coming from California where I'm located. I was hoping for any rules of thumb or tips before asking a bunch or contractors/water damage experts to look at a bunch of properties for bid.

I see you're from Atlanta where I'm also looking to invest. There seems to be many abandoned houses there as well. Do you have any experiences with gut remodels that you'd be able to share? Maybe where you wish you'd bulldozed and rebuilt or vice versa?

I'll PM for more info on your business and see if we might be able to work together. I'm new to OOS investing and am looking to expand my connections.

I know this is one of those questions that is difficult to answer with out the specifics so I’ll narrow slightly down to the markets of Pittsburgh and Atlanta since those are my areas of interest. Through my research and driving around these cities I see a lot of abandoned homes many which are well below market (some 10x) in areas that otherwise look like great areas to invest in. Are these houses just too expensive to tear down and rebuild and too expensive to rehab? Not afraid of full gut rehabs but want to make sure I don’t blindly enter new markets and get my self in over my head. Any advice and things to look out for are appreciated.

Hi BP!

I got turned on to bigger pockets by a friend of mine and have been listening to the podcast for about 6 months. I am at a place now where I am ready to make something happen. Brandon preaches that to get feedback you have to be specific so I’ll try to be thorough.

I’m a “new” investor living in CA looking to do out of state investing in less expensive markets. I own a property in San Diego that unexpectedly became a rental when relocating for work. It was a fixer that I did all of the work on (tile, basic piping, finishes and trim, basic electrical, drywall, fencing, laying pavers, etc). It has gained enough equity that I’d like to refinance and use the cash to grow my portfolio and actually invest with the intent.

Current markets I'm looking to learn more about and enter are Pittsburgh PA and Atlanta GA with value add small to mid size multi family residences. My initial strategy is to buy and hold and expand through the BRRRR method. Cash flow to help expand the portfolio is my current goal. The tenant type I'm looking for is the grad student/working professional/young family because I think I understand that type of customer best.

Hopefully I’ll be able to share my learnings in the future and give back to the BP community!