What kind of cash flows can I expect in Pittsburgh?

[Account Closed]

Hey all. I am thinking about buying a couple of multi-family units in Pittsburgh. I don't have an agent yet, but I wanted to hear from investors who are currently doing this and what kind of numbers they're seeing. 

[Jeremy Taggart]

@Account Closed B class you're looking more at the 1% rule anymore here. C and D you can still manage to get double digit cash on cash but they go quickly. Typical numbers are 100k for a property that rents for $1400-1500 range. 150-200k for a typical duplex in a B class area with slightly higher rents. 3-4 units pretty proportional numbers when it comes to price per door.  

[Mike Calabrese]

Just bought a 5 bd house in Brookline in January for 102,000 . Trying to rent 3 of the rooms out for 475 a piece has been kinda a struggle. I filled one but that was through my personal network. It has only been on the market for a month or two though. I also live in the property which I think scares people. I am kinda new at this too so maybe it just takes awhile to fill the rooms and I just don't know what I don't know. 

[Art Perkitny]

@Account Closed. Yields will vary greatly depending on the perceived risk of each area within Pittsburgh, or any city for that matter.

That being said, if you look at the high level data, it shows that on average properties in Pittsburgh are producing rents that are 0.82% of the purchase price.  

That being said, you'll need to decide what your investment goals are, what returns you are looking for, and how much risk you're willing to take on. 

The next image shows areas in Pittsburgh and rent to price ratios for each of them.  The darker the color, the higher the rent to price ratio is. 

[Daniel Lichtenfels]

@Art Perkitny Hello. I am really interested in using the information in the pictures you provided, but im using the app on my phone and it will not let me save it or zoom in and the screenshot is way too blurry. Do you mind me asking where you find information like that? Thanks!

[Steven Ko]

@Art Perkitny that map looks awfully close to the crime map lol.

[Art Perkitny]

@Steven Ko, that's interesting! 

There is a strong coloration with investment risk and crime so it's not surprising that the areas that have high crime are priced low to reflect that risk.