To those of you who have recently invested in or around Pittsburgh, PA I was wondering what cap rates you are experiencing?
I personally am looking at B and C houses in B neighborhoods. But I am curious what people are finding in any class of neighborhood.
Honestly it varies neighborhood to neighborhood and the types of properties you are loooking at, eg: a sfh vs a 10 unit apartment building.
I've heard of people who only buy 20%+ CAP rates in Allegheny county, but that can go down to just a couple percent, eg: shady side. I think most deals in B areas in Pittsburgh should be able to cash flow and at the end of the day that is what really matters. Also, since it looks like you are out of state, I would also consider the management headaches if you choose an area where clientele may be more difficult to manage. It's not always worth the extra profit for the headaches.
I think at the end of the day, if you can get about 10% CAP in a B area you are doing well.
Best of luck
@Alex Aguilar everything from 4-12 as @Bill E. mentioned. As @Jeremy Lee mentioned it depends on what size building you are looking at. Since smaller buildings (1-4 units) are valued on sale comps, cap rates are almost meaningless for those in my opinion.
More interested in either cash flow or cash on cash return.
What do you think for a 9 unit in Carrick, completely rented. One commercial front. I would love to hear your thoughts.
Im glad Alex inquired, Im a new investor also looking for C-B multi unit properties (5-20 units) in the the Pittsburgh area. I live in NJ, not to afraid to try investing out of state.