Handy Tips for First-Time Landlords

Jason Cohen has been an active investor within the Pittsburgh real estate community for nearly a decade. While he began his industry efforts by purchasing and renovating cheap residential buildings in high-potential neighborhoods, he has since expanded his investments to large-scale commercial and residential properties in vibrant neighborhoods. Here, Jason Cohen provides a few tips to new landlords.  

You’ve finally done it. You’ve purchased the building, touched up the paint, laid the carpet, and put your first investment property up for rent. But as the inquiries come in, you realize that the easy part is over – now, you have to deal effectively with your tenants. Jason Cohen Pittsburgh is an advising group operating in the city; as such, its veteran members have heard their fair share of first-time rental horror stories. It’s common for a first-time investor to be so caught up in the buy and the renovation process that they find themselves at a loss when they need to communicate professionally with the people living in their units. Unfortunately for landlords, the work doesn’t end when the contractors leave. Below, Jason Cohen, head of Jason Cohen Pittsburgh lists a few tips for aspiring landlords to take note of before opening their doors to tenants.

Be Assertive

Everyone has an off month now and again. Sometimes, a tenant can’t make a payment on the day it comes due – and in some cases, that’s okay. Landlords should be empathetic and understanding if a tenant faces tragedy or finds himself in a temporary financial crunch, so long as the tenant communicates the situation. If, however, the tenant chooses to go dark and refuse to pay the agreed-upon rental sum, landlords need to act assertively. You need the rent they owe you to keep up the building and make a profit. Being overly understanding to an elusive or underpaying tenant will only result in your missing needed funds. Be assertive! Don’t be afraid of pursuing a delinquent tenant for the money they owe you.

Check Credit and References

Never rent to someone who doesn’t have a job or has a credit score of under 600. Those without the means to pay rent or a history of regular repayment will inevitably leave you waiting for payments that may never come. Screen your potential tenants closely to ensure that they will be responsible, reliable occupants who will care for your unit and pay on time.

Make Smart Renovations

Don’t install marble countertops if your unit is in a low-income neighborhood. In all likelihood, those that inquire about your unit will be looking to pay a rent in line with those offered in nearby homes; if you try to cover a fancy renovation by asking a significantly higher rent, your prospective tenants will walk. Be smart, and don’t risk renovations that offer little return!

Be Organized

Organization is key to any successful business venture. After all, how will you know you made a profit if you have no documentation of the fact? Ensure your success by keeping organized and detailed records!

For more tips, advice, and real estate content, please visit Jason’s site at JasonCohenPittsburgh.org.

Choosing a Neighborhood in Pittsburgh, PA

Jason Cohen has lived and worked as a real estate professional in Pittsburgh for over a decade. Over the course of his time in the city, Jason Cohen founded the informal real estate advising group, Jason Cohen Pittsburgh, which serves as a forum for investors seeking advice on their Pittsburgh-based ventures.  In this post, Jason uses his familiarity with the region to offer insights into a few prominent Pittsburgh neighborhoods.

A neighborhood is more than a collection of similar houses along a street. It's a community; a place with a culture and quirkiness of all its own. Those who hop from place to place in search of a house or apartment aren't just looking for four walls and roof, but for a place they feel resonates with their own personality and practical needs. As a vibrant and ever-shifting city, Pittsburgh has a little something to offer every person who sets down roots within its limits. Jason Cohen, founder of real estate advising group Jason Cohen Pittsburgh, has owned and operated properties in all of the neighborhoods listed below. All are wonderful in their own, unique ways - and all are worth considering as communities to call home!

South Side

Median home value: $109,000

While united under the “South Side” moniker, this region is technically two neighborhoods, the Southside Flats and the Southside Slopes. Both are excellent places for working professionals to settle, given the region’s excellent public transportation system and its proximity to the city’s Business District. With its many restaurants and nightlife offerings, the area also offers plenty of opportunities for post-work pursuits.

Oakland

Median home value: $155,000

If Pittsburgh needed to point out its intellectual center, it would have to indicate Oakland. Home to prestigious hospitals, universities, museums, and international cultural offerings, Oakland is the perfect home space for students, medical professionals, and academics alike. The area also boasts the Carnegie Museums of Art and Natural History.

Mount Lebanon

Median home value: $262,700

Technically a suburb of Pittsburgh, Mount Lebanon is a suburban township in Allegheny County, PA. Young families should seriously consider setting down roots in the area, given that the district is nationally-recognized for its school and has been awarded National Blue Ribbon School awards on multiple occasions. It’s a lively, vital area - perfect for families looking to grow!

Regent Square

Median home value: $264,000

For recent college grads kicking off their professional careers, Regent Square is the place to be. Ranked #1 by Niche as the Best Places for Millennials in Pittsburgh, the Square offers a multitude of subdivided homes and diverse entertainment options at a reasonable price.

Shadyside

Median Home Value: $334,900

Well-connected and close to the University of Pittsburgh, Shadyside is perfect for university students. The area boasts a wide selection of apartment listings and is home to a number of boutiques, shops, galleries, and nightlife offerings. An ever-changing and vibrant area, Shadyside is perfect for residents who enjoy living in upbeat, vital communities.

*Originally posted on JasonCohenPittsburgh.net

Affordable Renovations for the Savvy Investor

House flipping requires strategy. Savvy investors know that slapping on a fresh coat of paint and changing a few doorknobs won't bring about a significant return on their investment. Jason Cohen, founder of the real estate advising group Jason Cohen Pittsburgh, realized this need for investment strategy when he bought his very first property. With the limited funds available to him at the time, Jason couldn't afford to sink money into unneeded updates; he needed to plan out his renovations and open the property to tenants without going over a set budget. Working on that initial project, Jason Cohen learned that a few carefully chosen renovations could net him a larger return than a few haphazard repairs ever could. Aspiring house-flippers should consider undertaking these worthwhile and inexpensive updates when they purchase a property!

Install new carpet

Stained wall-to-wall carpeting is an instant deterrent for buyers. Throw it out! The flooring below may surprise you; oftentimes, ugly carpets conceal beautiful floors that only need a little wax and polish to shine. If the floor underneath the old covering is unattractive, investors should consider purchasing and installing a new carpet. Either way, buyers will appreciate the clean, fresh appearance imparted by the touched-up flooring.

Replace Bathroom Odds and Ends

Investors don’t need to gut an older bathroom to make it shine. Grouting and caulking, while time-consuming, is an excellent way to return a grungy bathroom to its previously fresh aesthetic. Additionally, minor pieces such as sink faucets, towel bars, vanity surfaces, and medicine cabinets can be replaced at relatively low cost and up the attractiveness of the space.

Paint the walls

Never underestimate the value of a good paint job. A new coat can do wonders for an older space by imparting a sense of freshness to spaces that appear dated or run-down. When painting, investors should opt for a neutral color palette in order to avoid turning away picky buyers.

Consider your landscape

A buyer makes their first conclusions about a property before they ever step foot through the front door. All the time and money an investor spends on a property’s interior may amount to nothing if the shingles on its exterior are shedding or the grass in unkempt. Mind the landscaping! A quick mow of the yard and a bit of garden work doesn’t require much time or money and makes a tremendous difference to buyers.

Mind the budget

In the end, budget takes precedence. While a house flipper may want to completely renovate the kitchen or replace the plumbing in the bathroom, such pricey changes might not always be feasible. Investors should consider repairing rather than replacing, and ditch non-essential renovations if they find themselves spending more money than they anticipated.

Originally posted on JasonCohenPittsburgh.net.

The Value of Research: A Pittsburgh Case Study

Jason Cohen was only two years out of college when he bought his first property in Pittsburgh. It wasn't a luxurious place by any means, but it was what he could afford with the means left to him after student loans. He sunk what resources he had into performing the most necessary repairs and managed to breathe new life into the struggling building. Its value soared; newly determined after his success, Cohen set his eyes on the next project and invested his profits. After ten years of hard work, Jason owns commercial and residential properties throughout Pittsburgh. He began with limited means, but Jason now has the resources and experience to run multi-million dollar community projects.

His secret?  Research.

According to Cohen, who facilitates the real estate investment forum Jason Cohen Pittsburgh in his free time, research is the factor that makes or breaks a real estate venture. An enormous amount of pre-planning goes into rehabilitating a property for sale, and the success of the venture hinges on having reasonable profit and cost projections.

More and more investors are flocking to house flipping to make a profit; according to statistics provided by Trulia, a full 6% of homes bought in 2016 had been renovated for sale. However, the field does pose significant risks if investors have little experience. If you intend to break into the real estate industry as Jason Cohen did, please consider the following basic tips for real estate research.

Look into the expense of the house.

Houses cost money. Repairs cost money. As Mindy Jenson, community manager for Bigger Pockets commented for a U.S. News article: "Nobody is going to hand you a house for free, and you can’t go to Home Depot and [get] your supplies for free [...] If you are using credit cards and have no money, you can get into trouble quickly.” Assess whether the house will require expensive repairs, and compare your expense projections to your budget. Sometimes, it’s best to be patient and move on from a house with too many liabilities in search for one that poses less of a risk.

Research the neighborhood.

Find out how much you’ll need to pay to renovate the house for sale, then assess how much you’ll likely get for it based on neighborhood averages. Remember, you can’t tack on an extra $10,000 to the price simply because you owe that much to your lenders. Figure out if you can afford to buy and renovate the home, then act accordingly.

Research lenders.

Financing a house is notoriously expensive. Spend time going over your borrowing options, and choose one that suits your needs. Don’t move forward with the first place you visit; take the time to check out all of your lending options and proceed as seems best.

*Originally posted on JasonCohenPittsburgh.org