All Forum Posts by: Shai Flax

@Shai Flax. From one investor to another, there are a few other things you need to watch out for that others fail or don’t bother to mention:

(1) Section 8 has limits on rent that they can pay for certain property types in certain areas.  You will have to research and check the maximum they will pay for a 1BR, 2BR, etc.  These maximums may not work for your numbers.  They’ve been changing every so often and the limits are only getting lower, not higher.

(2) Watch out for those pesky taxes in PGH...they’re high but make sure you budget for it in your numbers.  Don’t be surprised to see anywhere from $200-300/month per door for all three taxes (county, muni, school) depending on property type.

(3) Always check how much the current assessed value is on a property that you’re wanting to buy.  If there is a huge spread between current assessed value and your purchase price, beware that you might trigger a reassessment in taxes...and the numbers you used didn’t take this into consideration.  Typical scenarios like this might happen when you have a seller who has owned a property for generations and the last assessed value and hasn’t caught up to the current market selling prices.  Allegheny County has a website that shows this information but it won’t show you the total three taxes paid...only the county taxes, which are low in comparison.  School board tax in certain areas is a killer, but if you account for these numbers and can still make your numbers work, you should be fine.

Hey Shai and welcome to BP! There has already been some great information posted here. It will come down to what your risk tolerance and comfort level is. You'll find people that love or hate nearly every niche out there. There is a lot of fear, panic, and uncertainty right now. Focusing on solid wedge deals and solid tenants are going to be your most important factors to consider in your searches right now. There's a chance you may end up with a vacancy or tenant that can't/won't pay rent for some time because of the crazy state of the world. Being able to float the mortgage for the foreseeable future is a factor to be mindful of when budgeting. 

All that said, I think there are and will be unprecedented investment opportunities in the near future. It's just unfortunate how they came about :(  Now more than ever, virtual tours are a great asset for finding your investment. But more importantly for finding tenants and documenting the condition of your property before and after leasing it. 

Best of luck to you and stay safe!

@Shai Flax we have been fortunate so far and have been filling vacancies via virtual tours of the property. Great time to buy property but we still need to be careful when investing due to the unknown of how long this Covid virus will impact the economy.