My name is Shimon, and I am new to real estate investing. I Did my research and decided
to invest in Pittsburgh, Pennsylvania.
I plan to start by purchasing SFHs, in A-B class areas with a budget of
120K - Two deals or a budget of up to 250K - One deal.
Can anyone provide some tips for me?
Any special or unusual RE rules that I should be aware of?
What are the best neighborhoods to invest in for flips?
What are the worst (high crime areas)that I should stay away from?
Thank you for your help,
Hi @Shimon Gorodetski ! There's a lot to unpack in your questions. If you are not local to the area, I'd recommend finding an agent, getting on some wholesale buyers lists, and reviewing other discussions in this forum. Everyone has an opinion on things like best neighborhoods to invest in for flips, what you should or not should be aware of, etc. But I can assure you, in almost every neighborhood in Pittsburgh, there are investors who do well and those who do not!
I think finding an agent might be a good route to get a better lay of the land. Good luck!
@Shimon Gorodetski HI Shimon, as @Chris Policicchio said, you may be wise to seek a local Realtor who is investment property savvy. And yes there's never a pat answer to best neighborhoods for a few reasons. Some work for some investors, some are just not as feasible for others. So your ultimate intent and goals come into play. Also Pittsburgh neighborhoods change street by street and sometimes on the same street. Another reason why contacting a REI realtor who knows these neighborhoods may be a good thing, is that way you can have a specific discussion about your plans/goals, budget, level of income you are looking to achieve, types of properties interested in, financing, etc. Yes you have specified the types of properties you are interested in and your budget, of which is fantastic. There is also so much more that a one on one conversation can be even more beneficial. Thanks for posting the topic and best of luck as you invest in the Pittsburgh area. Gary
@Shimon Gorodetski I'd focus on somewhere were the ARV's are at least 200k if you are looking to do a flip, that'll give you more margin and room for error on the project. Plus these are the areas that are more desirable and you'll have people more likely to pay for the updates. 3+ beds, 2+ baths (master suite), 2 car garage, flat usable yard, and good school district is your bread and butter flip if you can focus on properties like that. Little different in the city neighborhoods though so it really depends on the specific neighborhood what is desired/works there. Plenty of good areas though where it could make sense.
@Shimon Gorodetski I would definitely recommend looking into neighborhoods like Avalon, Brighton Heights, Dormont, Castle Shannon, Oakmont. Neighborhoods with higher ARV's are your best bet.
@Shimon Gorodetski your best bet is to focus on the perimeter of a C class area. If you can find a good neighborhood on the perimeter of a C neighborhood you will be able to attract a better renter clientele and the resale will be more profitable for you when you do decide to sell. The challenge is getting to know the areas well enough that you realize what a C plus area looks like. That will come with some professional guidance and your own market experience here in Pittsburgh
If your goal is to flip... I would suggest finding someone to be boots on the ground with construction and remodeling experience. They can help to analyze deal by providing solid renovation budget numbers. Many wholesale deals I look at have unrealistic rehab numbers. Build your team starting with a good agent. All the guys above are the real deal and can help. After the purchase they can help manage the project and ensure timelines are met.