All Forum Posts by: Sam Schaefer

Hi @Swetha Mandava !

Congratulations on getting close to your first deal!! You have a lot of great advice here!

Would you mind sharing a bit about your strategy? Are you looking for appreciation or cashflow? Are you looking to BRRR?

If this property does indeed need foundation repair, I would strongly suggest not moving forward. As @Jeremy Taggart noted, this could cost quite a bit of money, and it's a pretty big project to take on for your first property. You would absolutely also want to replace fuses. It should not be too much of a problem, as long as you use a good electrician and the wiring in the house is relatively up to date.

Did your estimations include capital improvement costs?

Also, I am not a fan of ARM loans. I understand that you would have 7 years at 5%, but we don't know what rates will look like in those 7 years. Loans are also front loaded with interest, so even if you do refinance to a lower rate, you are going to end up paying a lot in interest. Just my two cents - I'd rather take a guaranteed predictable long-term loan now, and if my strategy includes possibly refinancing in the future, I could still do that.

Happy to connect further if it's helpful :)

Hi @Leon Blyacher !

I am from and currently live in Pittsburgh. I am also an investor with a real estate license (I don't actively look for clients as a realtor but am happy to help friends and family if they need me).

I'd agree with that. You should see decent appreciation in Millvale and Reserve. 

Hi @Leon Blyacher !

I love Bellevue for appreciation and cashflow - it seems to be on an upward swing, but early enough in the swing that you should be able to grab a good amount of appreciation.

From what I have heard, crime has gone up a good bit in Southside Flats - it's more of a party scene, so that's just something to consider with tenants. The plus side is that properties are relatively cost effective and cashflow decently. Appreciation may be decent because there are some really nice new properties in the Flats and the Slopes already. With Mount Oliver, just be aware that it is not part of City of Pittsburgh and the taxes are relatively high. I know people that invest in the south side of the city and are happy with their investments (more so in Carrick than Southside Slopes or Flats), but I am far more familiar with the north side of the city myself.

I'm happy to connect further if it's helpful :)

Hi @Rollie Swanson !

Have you decided on a strategy? Basically, what @Joe Villeneuve outlined above is what you need to be able to do your calculation. 

I'm not sure what kind of capital you are working with, or what kind of previous experience you and your partner have, but it is my understanding that you could refinance all of your properties with a portfolio loan. I work with an excellent team of lenders for my properties - I have done 2 refis myself this past year, and they were wonderful to work with. They always found the best deal possible for me. I'd be happy to share more if that is helpful.

@Ray Riley

Hi Ray!

@Jeremy Taggart said a lot of great stuff! The east end is a bit tough with competition and hiked prices, but there are still plenty of areas around the city that are probably earlier on in the gentrification cycle. Northside is definitely one of those areas, and I see a lot of investors moving into Southside but the properties are not super expensive (yet).

Before buying in the City of Pittsburgh, I would strongly recommend deciding on a strategy. If you are looking to BRRR a property, it's tough because you need a permit for everything, and they are expensive AND take a month or more to get approved. Another thing to consider is that the City of Pittsburgh has the highest transfer taxes in the state (and from what I have seen/read, in the country) - so when you buy a property in the city, you are paying 2.5% in transfer taxes and so is the seller. That may not sound like a lot, but it adds up, and if you wanted to do flips, the cost / timeline for permitting coupled with the transfer tax cost would eat away at a lot of your profit. None of this is to discourage you from buying in the city (I own properties in the city myself) - I just want to make sure you go in with both eyes wide open.

That being said, there are many neighborhoods just outside the city that could have a nice return for you - just depends on your strategy.

Also, being out of town, I would try to assemble a team before buying (plumber, electrician, etc.) because you are going to need people that you trust in case of an emergency. I have contacts I would be happy to share.

Always happy to discuss further and share about what I have seen work (and not work). I'll shoot you a message :)

@Misti DelMar

Hi Misti!

You certainly have gotten a lot of really great advice here.

While I agree that in order to learn and move forward, you actually have to do something, I personally wouldn’t recommend spending all of your capital and taking on a ton of debt just to do it. You seem very motivated to get going, so at a very minimum, I would reserve some cash in case of unforeseen issues that inevitably pop up when it’s least convenient.

Also, your network is going to be SUPER important, especially because you will not be living near your property. I badly underestimated how important this was and learned the hard way. The best advice I could give is make sure you have workers (handy man, electrician, plumber, etc.) that you trust before getting started.

It sounds like you have a lot going on and would like to diversify your income - that’s a really great move. If it’s helpful, I would be happy to walk you through some of the things I have done to diversify. My property portfolio is pretty unique - ranging from single family homes in other states to local commercial properties - I have a small collection of a bit of everything. It’s still pretty small, but I have learned a ton. I’ll shoot you a message 😊

@Account Closed - This is also in line with what I've been reading. Everyone's comments are so mixed - it really seems like you need to have a really good handle on the city to know where to buy. I would LOVE to meet up! What days work best for you?

Hello Bigger Pockets!

I am interested in investing in an owner-occupied multi-family fixer upper property in North Jersey. I have heard a lot of good things about Jersey City and would really like to invest there. Since I plan on living in this property, what are some neighborhoods I should try to stay away from? The crime stats I've found online have not been the most helpful, but it seems like Greenville is a neighborhood that I should steer clear of. Any advice is much appreciated!!

Thanks, Russell!! I was thinking the same thing. It's nice to have some confirmation. 

Hello, Bigger Pockets! I am a new investor looking for some advice. I currently own a single family home that was originally a duplex but was converted to a single family home in Minneapolis, MN. My fiance and I are working to convert it back to a duplex. This is his primary residence and was mine as well until I moved to NYC. I am now in the process of purchasing another multi-family home in Union, NJ. This house was a single family that was made into a duplex. I have the property under contract and have gone through the inspection, and there were a lot of findings. The biggest ones were the broken asbestos flooring that had been carpeted over in the semi-finished basement and a small spot of mold on the wall in the basement. I had mold testing done, and it turns out that it is toxic mold, and there is also toxic mold present in the air in the basement. In addition, the seller ripped up the flooring (did not have a professional remove it), so now there is asbestos in the air in the basement as well. This home is going to be my primary residence, and I had planned on living in the basement because the space is much better than the other room in that unit. The seller said that he is willing to have the asbestos and mold removed by a licensed professional, but I am still wary of this sale. Because this is my first real step into the world of real estate investing, I don't want to get in over my head. Plus this is going to be my primary residence. Would any of you more experienced investors still go through with the deal if the seller had a licensed professional remove the mold and asbestos? There were several other issues including (but not limited to) severe water and termite damage in the garage and broken or malfunctioning windows to just name a few more. I feel like the seller is just trying to do anything (as cheap as possible) to sell this house because he knows he is not going to get as much as we agreed upon if the house goes back on the market.

Sorry for the long-winded intro/question, but I thought it was important for you to have some background on me and my investing situation to be able to give the best advice possible. Any advice helps! Thanks!!