Invest in Pittsburgh or Indiana?

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Invest in Pittsburgh or Indiana?

Conte CuttinoPro Member
Rental Property Investor · Member since 2019 · 64 posts · 13 votes

Hello BP family, I have narrowed my decision down to invest in either Pittsburgh, PA or Indianapolis, IN. the difference between the two are that Indiana has a bigger population with 876k compared to 301k in Pittsburgh. Indiana also has two of the biggest professional sports in their city with basketball and football teams. I'm curious to know if either state has laws that will waiver my decision. Any suggestions is greatly appreciated. 

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Todd Atkinson
Rental Property Investor · Phoenix, AZ · Member since 2020 · 47 posts · 18 votes
6y

I do have a duplex that I’m looking to sell in Madison County if anyone is interested...good cash flow

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  • Todd Atkinson
    Rental Property Investor · Phoenix, AZ · Member since 2020 · 47 posts · 18 votes
    6y

    Indiana has very low taxes and residential prices are significantly less  compared to similar cities. In addition, the laws are landlord friendly and there are good opportunities to invest in both single family and MF..I’d suggest staying away from Marion County....focus on the other counties that surround Indianapolis greater area (Hamilton, Hancock, Boone).....the push outside the city continues...I prefer Madison County since prices are depressed with anticipated modest growth 

    2Reply
  • Collyn Bennett
    Specialist · Indianapolis, IN · Member since 2020 · 29 posts · 9 votes
    6y

    @Conte Cuttino I agree with Todd. I saw during the corona shutdown that Marion county has the potential to come out with laws that are driven by a large population mindset and aren't necessarily favorable to investors. Earlier this year many businesses in Marion county had to stay shutdown while the businesses across the street in a different county could be open. Not that this current situation happens often, but it does show how future laws/ordinances within Marion county could vary quite a bit from the surrounding area.

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  • Alex Deacon
    Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @Conte Cuttino you will never really know how the Corona is going to affect the future law changes or government regulations. If you are concerned then you should take your time and make sure you buy the right deal. leave a lot of room for mistakes and unknowns. The challenge right now is that the market in Pittsburgh is so hot that you cant find these deals and act on them quickly enough unless you are here and ready to pounce ASAP. In this kind of market you dont have the luxury of time to make decisions or do any research. I can tell you that Pittsburgh has been a great market for me but I also do this everyday and I have my pulse on the market here.

    2Reply
  • Todd Atkinson
    Rental Property Investor · Phoenix, AZ · Member since 2020 · 47 posts · 18 votes
    6y

    I do have a duplex that I’m looking to sell in Madison County if anyone is interested...good cash flow

    3Reply
  • Nicholas U.Pro Member
    Member since 2020 · 65 posts · 44 votes
    6y

    So I live in Indiana and I do look for investment properties in Indianapolis on occasion but I do like to warn people about simply picking an area.  Indianapolis is a very tricky place to invest and it comes with a good amount of risks which is why home values are so low in some areas.

    Once you decide the area ask for recommendations on a good property manager and get their opinion.  I can get you in touch with mine if you would like.  They are very good and talking about risks and such and are very good at keeping your investment safer.

    1Reply
  • Conte CuttinoPro Member
    OP
    Rental Property Investor · Member since 2019 · 64 posts · 13 votes
    6y
    Originally posted by @Nicholas U.:

    So I live in Indiana and I do look for investment properties in Indianapolis on occasion but I do like to warn people about simply picking an area.  Indianapolis is a very tricky place to invest and it comes with a good amount of risks which is why home values are so low in some areas.

    Once you decide the area ask for recommendations on a good property manager and get their opinion.  I can get you in touch with mine if you would like.  They are very good and talking about risks and such and are very good at keeping your investment safer.

     Thank you all for your input, building the proper team is key and so I would love to get in touch with your PM. How many properties you have with them? 

    @Nicholas U.

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  • Conte CuttinoPro Member
    OP
    Rental Property Investor · Member since 2019 · 64 posts · 13 votes
    6y

     Thank you, 

    I agree 100% on the network, its been said that as a beginning investor having an real estate agent as oppose to a wholesaler is a safer bet. whats your take on this?

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

     I 100% agree that it comes down to the team you are able to build vs the market

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  • Jason PowellPro Member
    Investor · Indianapolis, IN · Member since 2020 · 53 posts · 19 votes
    6y

    @Todd Atkinson I'd be curious to know more info about the duplex in Madison County that you're looking to sell...

    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    Hi @Conte Cuttino, I don't know any specific laws in either city but something that might help base this decision are the connections you have in either city. If they're both equal, I would go with the city that you can set a better team up in. 

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  • Conte CuttinoPro Member
    OP
    Rental Property Investor · Member since 2019 · 64 posts · 13 votes
    6y

    Thank you all for you input the connections are equal for both cities I’ll be starting from scratch not knowing anyone. I will be seeking to find connections in both cities and see where that gets me. 

    1Reply
  • Todd Atkinson
    Rental Property Investor · Phoenix, AZ · Member since 2020 · 47 posts · 18 votes
    6y

    @ Jason Powell - if you want to send me your email, I’ll forward info

    1Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    6y

    @Conte Cuttino Indiana is a landlord friendly state. I don't know PA at all. Aside from landlord/tenancy laws, how are the economic and demographic trends in Pittsburgh? Does is have a growing population? Growing jobs? Does it have a broad based industry and employment? Those are key factors to evaluate any market on.

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  • Nathaniel Buck
    Investor · Pittsburgh, PA · Member since 2020 · 16 posts · 7 votes
    6y

    Hi @Conte Cuttino, just wanted to add one thing: the population within the Pittsburgh city limits is small (300k like you said), but the population of the greater Pittsburgh metro is 2.3 million. Don't mean to nitpick, just wanted to point out that most of Pittsburgh's population is made up of smaller municipalities outside the city proper. 

    2Reply
  • Anthony Angotti
    Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    6y
    Originally posted by @Conte Cuttino:

    Hello BP family, I have narrowed my decision down to invest in either Pittsburgh, PA or Indianapolis, IN. the difference between the two are that Indiana has a bigger population with 876k compared to 301k in Pittsburgh. Indiana also has two of the biggest professional sports in their city with basketball and football teams. I'm curious to know if either state has laws that will waiver my decision. Any suggestions is greatly appreciated. 

    No specific laws in Pittsburgh that should make you want to avoid investing here. It's pretty average when it comes to landlord tenant laws (COVID laws excepted). 

    The biggest thing is probably our taxes, they can be pretty high after refinance, however that's offset by the good price to rent ratio. 

    Population is declining somewhat, but not rapidly, and there are new jobs being created (with higher income potential), so I don't think the population is that bad of an indicator here. 

    0Reply
  • Gloria N GearBusiness Member
    Realtor · Indianapolis IN · Member since 2018 · 464 posts · 339 votes
    6y

    My husband grew up in the Pittsburgh area and we now live in Indy -- the culture, etc is very similar.  I feel that Indianapolis has much more economic diversity - tech companies, pharmaceutical/medical, several colleges, manufacturing, distribution centers, hospitality/convention centers -- so we are not as affected if one particular industry takes a dive.

    Our real estate areas are also very diverse.  I love chatting about the different areas of Indy and the different types of investing that work in each different area.  Let me know if you want to connect.

    2Reply
  • Conte CuttinoPro Member
    OP
    Rental Property Investor · Member since 2019 · 64 posts · 13 votes
    6y

    Thank you all for the great advise. It seems like both locations have there own special features. I like @Gloria N Gear comment on the variety of industries in the Indi area. I guess the question now is where are the best areas for Buy and Holds and Flips? 

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  • Michael Hasegawa
    Rental Property Investor · Santa Clarita, CA · Member since 2016 · 11 posts · 1 vote
    6y

    @Conte Cuttino I’m an out of state investor in CA that’s been investing in Indy since Oct 2018. I think one thing to keep in mind with Indy from a tax perspective is that you’ll have to pay 2x what an in-state owner would pay. Other thing to keep in mind is that Indy is very much “street by street”, meaning that you could be in a rough area and nearby could quickly be in a nice area. Hit me up if you’d like to chat.

    0Reply
  • Madigan Tumilowicz
    Rental Property Investor · Denver, CO · Member since 2019 · 18 posts · 20 votes
    6y

    @Michael Hasegawa Can you elaborate on the tax differences for in-state vs. out-of-state investors in Indy? Is this determined by a formula? Thank you!

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  • Michael Tyler
    Rental Property Investor · CA · Member since 2019 · 65 posts · 53 votes
    6y
    Originally posted by @Madigan Tumilowicz:

    @Michael Hasegawa Can you elaborate on the tax differences for in-state vs. out-of-state investors in Indy? Is this determined by a formula? Thank you!

    In a nutshell, owners who do not live in IN pay 2% (ish) in property taxes. When you hear, “IN has such great tax rates...” then yeah, that’s if your a resident. 

    There may be more nuance to it than that. Other states do this also I believe. And Pittsburgh is still way higher regardless. In Pittsburgh you’re paying the equivalent of anywhere between the high 2% range (inside city limits) to up to 4% (depending on the suburban area). This is because the PA state government won’t support schools with state taxes, so localities have to find the money somewhere else. 

    3Reply
  • Account Closed
    Real Estate Agent · Pittsburgh, PA · Member since 2020 · 111 posts · 51 votes
    6y

    @Conte Cuttino I would recommend Pittsburgh's investing market simply for the fact of the purchase price to rent ratio is typically higher than most. While most buildings are older construction, they still yield pretty good rents because of the neighborhood. You cannot look at just Pittsburgh. My advice would be to open your search to further outside the limits and expand to about an hour in all directions from the center of the city. I'd be glad to have a conversation about Pittsburgh investing with you.

    1Reply
  • Michael Hasegawa
    Rental Property Investor · Santa Clarita, CA · Member since 2016 · 11 posts · 1 vote
    6y

    @Madigan Tumilowicz, if the property is owner occupied and there's a homestead exemption on file, the owner pays 1% of the assessed value in annual taxes. However, non-owner occupied homes are subject to 2%.

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    6y

    I don't know the Pittsburgh market but Indianapolis has a growing population, growing jobs, a modern, diverse economy and is very landlord friendly. 

    0Reply
  • Anthony Angotti
    Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    6y
    Originally posted by @Conte Cuttino:

    Hello BP family, I have narrowed my decision down to invest in either Pittsburgh, PA or Indianapolis, IN. the difference between the two are that Indiana has a bigger population with 876k compared to 301k in Pittsburgh. Indiana also has two of the biggest professional sports in their city with basketball and football teams. I'm curious to know if either state has laws that will waiver my decision. Any suggestions is greatly appreciated. 

    I would consider Pittsburgh and Pennsylvania average as far as being favorable to landlords as far as the landlord tenant act is concerned. 

    Some neighborhoods in Pittsburgh can be annoying with code enforcement and registration/inspections, but there is no rent control or anything of the like and most municipalities are easy enough to work with. 

    0Reply
  • Todd Atkinson
    Rental Property Investor · Phoenix, AZ · Member since 2020 · 47 posts · 18 votes
    6y

    Contractor recommendation

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