Multi-Unit Residential Friendly Areas in Pittsburgh

11 Replies

To those who are active investors in Pittsburgh PA, and surrounding areas, I would love to learn what areas, sub markets, zip codes you are investing in for multi-unit properties.

What areas are in high demand and command higher rental rates outside of the obvious down town etc? I have been recommended to look into the South Side and Lawrenceville for starters but would love any other recommendations from those who have had success in multi-units in Pittsburgh.

@David Baier i am investing in multiple zip codes. You take a few different approaches. Buy in only A areas where the return is less from a cash flow perspective but much less risk. Or you can go with high crime, below average income areas that have potential to be the next hot spot. Thats more risky. I buy 300k multi families to 30k single family homes. You need to ask your self what is my strategy, what price range am I looking and how adverse to risk am I?

David- Lawrenceville is a hot area. South Side not so much. Millvale, Aspenwall, and Troy Hill are across the river from Lawrenceville and could be seen as up and coming. Mt Lebanon, Upper Saint Clair and Sewickley are nice as well and you avoid the increased City of Pittsburgh transfer tax.   

@David Baier Personally while I still see Lawrenceville as a hot market, it's now become more for buying homes to  flip rather than mutli-family rentals.  Upper St. Clair and Mt Lebanon are also not known for rentals areas but they do exist. What I'm saying here is that there are rentals in every neighborhood that do well, but you cannot generalize an area, you more have to go street by street. And yes, there are lot of factors that go into your decision. I suggest getting with someone that really knows the areas well. 

How far outside of the city of Pittsburgh do you all look for properties? Does anyone buy more then a half hour outside of the city?

@Bill E. I’d be willing to go upwards to an hour outside of the city as long as the numbers worked and I felt confident enough to consistently get tenants. I was born and raised in Pittsburgh so I’m pretty familiar with most of the areas that are within about an hour of the city.

@David Baier

I invest around where I live for the most part (Dormont, Brookline, Beechview). I'm in the process of buying one property farther away, but only because it's a really good deal with seller financing. 

Most neighborhoods can work but it depends on the strategy. What are you looking for tenant wise and return wise?