All Forum Posts by: Devin Woods

Good luck Mat, There are certainly a lot of good options for cash flowing multi-unit buildings in Pittsburgh. The neighborhoods you look in will make all the difference in you analysis. Let me know if I can assist in any way, and congrats on the new baby.

Dawn, Why do you believe that this has become a commercial property just because it is owned jointly? If it's a SF, then it obviously isn't greater than 4 units. Who you are renting to is irrelevant when it comes to insurance, just the fact that it's a rental. If you're having issues finding somebody who insures rentals at a reasonable rate, ask your broker for the other options that they offer other than the big name they represent.

Eric, On a cash flow bases, Cranberry Twp will not be a good option. Prices are much more inflated. That trend is starting to spread north into Zelienople and Evans City as well. Great places, but just don't have the cash flow of other regions.

Cameron, I think you identified the problem with your structure. It certainly is and will be a nightmare to try to manage that many entities and accounts. Plus your paying for that many LLC formations, tax returns, etc. So the cost of you doing business will be substantially higher. Unless you're buying larger commercial properties, that structure to me doesn't make any sense. Obviously an attorney and tax professional will give you great legal guidance, but you need to also think of your business model and how you'll actually execute what your structuring.

Melanie, I have to agree with most others on Wilkensburg. I consider it un-investable. The area geographically is close to Lawrenceville. Everyone who didn't get in on that craze (which is most) are constantly looking for "the next Lawrenceville". I've heard Wilkensburg referred to as the next many times. However there probably isn't a next, and it almost certainly isn't Wilk. I'd use a huge vacancy rate and repair/maintenance budget in your analysis of any home in that area.

Thomas, You should be able to get an ROI of 15%-25% in actual cash flow throughout many areas of the Burgh. These numbers will vary from area to area, and could exceed in either direction. But if you are financing with 20-25% down through conventional financing, these cash on cash ROIs are attainable.

Welcome to the site Len. I'm sure you'll be able to find a good duplex or triplex deal if you just perform some good analysis. Pittsburgh has quite a few. Good luck.

Thanks @Mark Nolan

@Tom S.

That is certainly good information to know. I had heard something along those lines previously. That certainly adds a nice layer of risk to this. I'm in the oil and gas industry, and the last two years haven't been the best for any company in this field. I would think since I've made it through many rounds of cuts at my company, I should be good, but you never know. 

Thanks for the input Tom. 

@Cody Backus,

I am familiar with a self directed IRA and 401k. It is my understanding though that for both of these options, you must actually roll your current 401k into one of these accounts. If that is the case, I'm still with the same employer and don't have this option, at least it's states the account isn't available for withdrawal or roll over. You generally have to no longer be employed to have this option. Plus it's my understanding that the funds or profits would all have to go back towards your retirement and are closely held or regulated, and it's much more difficult to get deals completed, or at least there is a lot more hoops to jump through. But my assumptions may be wrong.