All Forum Posts by: Shulem Elias

Would you be able to explain why? 
appreciation, and cash flow  

Thank you so much will check it out 

Hi 

does anyone know anything about the website neighborhoodscout.com ?

looking for detailed information on market analyses 

would appreciate for some information please   

Hi BP Family 

6 weeks ago I’ve made my decision that I want to invest in RE , I read through the book “The Ultimate Beginners Guide” and once I knew that what I want to do is “Buy $ Hold” (see what I did there!) and the fact was that I will have to be investing “long distance” I purchased another two books “Long distance Real estate investing” by David Greene and  “Multi Family Millionaire” by Brandon Turner and Brian Murray.

I started reading -to be honest quite ‘slowly’- and while I was reading I started getting heads in , I didn’t  search for a property “because I didn’t even know where would be a good start” all I typed in in the ‘find deals’ on BP.com was ‘multi family’ I came across a 3 unit occupied multi family  in Pittsburgh that the price and return seemed to be very profitable. I knew I had the money to make a cash offer. I made some contact in Pittsburgh came  across the nicest people there that helped me to check out the property , I searched many long (and maybe wasted) hours on understanding the areas regarding schoos, crime, renters, etc, - again this is also still a big question how to determine such decisions about areas (guess I will need to read some more). 
the conclusion with the agent that went to look at the property was as follows in his words “This property is not for you unless you find a good property manager. It’s a d neighborhood and tenants are lower income” , I more less knew that still had the feeling that I want to take the risk, so I started searching and getting recommendations for property management in the area , came across someone that seemed fit for the job , that told me from 750 apartments 20 are vacant and were going through applicants asked them to check out the property I was interested in,  they came back and said they could manage it for me. 

Here comes the bummers 

1. I contacted my agent told him that I want he should represent me with the purchase , and I have someone that could manage the property for me, he told me that he does the same service and he could to it do ,  is don’t take me wrong he’s a nice guy and I love him dearly (I did my research in him) , but I wasn’t expecting an agent that told me before unless I have a great PM I shouldn’t go in, and now he’s asking to be the manager?!?!? Just turned me off I didn’t know what to say because I want to continue working with her as an agent but I want to have a different PM going forward.  

2. With the time I decide I’m not going to make a cash offer because I don’t want to be tight up after the closing. So I contacted a mortgage agent went through the option 1 conventional bank loan 2 cash flow program etc then came the estimate and closing costs for taking a loan another 11k+  and here’s where I just lost myself , I wasn’t expecting paying so much more on a loan. 

Here I am now falling apart half knowing that I don’t want to give up , but not really doing anything about it , I know that I should go back to read some more and educate more but,

I feel like I burnt out the people that I worked with until now helping me to find and resource deals. 

I feel like I don’t really know which area to start looking again! 

I know how much money I have in my bank, but how can I know how much money the bank or any other financing option has for me!

If you have any beginning experience I would love to hear about it! 

Thank you 

Each one helps the other,Saying to his fellow, “Take courage!”
(Isaiah.41.6)

I’m adding to the question and would love to hear anyones response 

Wouldn’t be better to get in a contractor or 2 of them,  to go check out the property abs see what needs to be done ? 

Hi BP Family , 

While learning on how to observe a rental deal generally before delving into the details, I cam across the tactic of just checking the Cap Rate on the deal , to see if it matches the investors interest, 

Example: 

Purchase price $190,000

Gross Operating Income: $30,000

Operating Expenses -55%

Vacancy: 5% 

= NOI: $12,825

$12,825/$190,000 = (0.0675) 6.7% cap rate 

While we all know Cap Rate isn’t everything in the deal, but for the beginning and brief observation it’s great. 

My question is just do you guys agree that 55% of the GOI goes towards operating expenses? 

Could be that I read this wrong? Please share with me any thoughts and experience you have about 

I’m attaching two screenshots where I read this idea.

Hi guys

I'm looking into investing in Pittsburgh, I came through the "East Pittsburgh" area, I understand through the deal that its not the Grade A area , but I would like if anyone can help me get more information on the area 

basically is there a request to rent there?

do the renters stay in the area constantly or they leave after a year? 

are the tenants there honest and decent people, or will my apartment  be ruined .....?

I know that my questions are very general, but if anyone has some information on this 

I would appreciate to hear on it 

Thank you 

thank you @ david 

I really appreciate it,

I checked the website looks very good 

was very helpful

thank you 

Shulem