Is Beaver County, PA a growth rental market?

Question

Pennsylvania investor here - hello BP community! I'm seeing some promising numbers for cash flow in Beaver County, PA (north of Pittsburgh). I know Pittsburgh is a hot market, but the competition is already driving up the prices in Allegheny County.

In contrast - Beaver and Butler County have remained low. Does anyone have insight or experience on this region? Cash flow is not a big concern, but long term buy and hold appreciation is. Thanks! KG

Jeremy Taggart · Answer

@Karen Grethlein Allegheny is starting to get saturated because of the amount of out of state investment going on here nowadays. Beaver and Butler you don't tend to see as much of that so typically find better rent/price ratios in decent neighborhoods there. To get those same rent/price ratios near the city you are getting into the rougher neighborhoods. The margins are also better for BRRRR and flip deals in the surrounding counties outside of Allegheny for those same reasons.

You won't be able to replicate the potential future appreciation though that you will get being close to the city. I tend to favor buying both stuff in the surrounding counties for cash flow/equity on day 1 and closer to the city for little less cash flow on day 1 but have that upside for future rent/home price growth that being near the city brings.

As far as rent demand as long as you are somewhat close to the 3 major job centers here (City, Robinson/Airport/Cranberry) I've never had issues getting stuff rented.

At the end of the day really depends what you are going for there are options for both which is nice.

Karen Grethlein · Answer

@Jeremy Taggart thank you for the insight! Appreciate it.