Any experience investing in Whitaker, Pittsburgh Pa?

Question

For those local Pittsburgh investors, I am considering purchasing a 14 unit multi decently heavy value add in the Whitaker neighborhood. I’ve never invested in the area, any suggestions about quality of tenant + stories about the area?

i understand that it would be a cash flow play, but don’t want to deal with a D neighborhood.

our sweet spot is B or C value adds, but no heavy heavy lifting 10-80 units, is this a neighborhood that works with that?

Luke Palamara · Answer

I have a property on Larkspur. Technically Munhall but on the border of Whitaker. As a highly general rule, I think the farther south you go in that little area, the lower the prop values and things get a tiny bit tougher. But there are good deals to be had.

I’d definitely consider this a C area instead of a B.

Happy to talk live if I can help.

I’d definitely consider this a C area instead of a B.

Happy to talk live if I can help.

Jim K. · Answer

@Clayton Hepler

It's pretty simple in Whitaker. The closer you are to the Mon Valley Heights Corporation, a.k.a. "'Sup inna pee-jays," the worse it is. Anything over by Cherry and Frank, you can make money there. Anything by Magnolia and Whitaker can get mighty sporty after dark.

@David Lee Hall, III has pinpointed what the neighborhood looks like. My cabbage patch is nearby Munhall.

David Lee Hall, III · Answer

I actually like Whitaker but never have managed to close on a home there (tried several). A lot of nice little streets with some mildly rougher areas mixed in. Not nearly as bad as say Duquesne for risk. The one thing my PM has always told me is you can get good tenants there, but it may take you 6-months to get that good tenant instead of settling. (Which is the main reason I never would budge on my offers.) Just my $0.02 since I haven't managed to close on one there yet.

Clayton Hepler · Answer

@Jim K. Thank you very much! I was thinking about the Mon-View in the same way you are pointing out. It would be near Chalfont, which is very close to the Heights just a few streets over. Which brings us to David's point. Look like a sink... albeit a great value add opp.

Chris Pasternak · Answer

They don't call it whit life for nothin'

Art Perkitny · Answer

@Clayton Hepler,

The Whitaker area is coterminous with Census Tract 4850 in Allegheny County, PA

The makes it easy to look the data and will help make an assertion as to the quality of tenant one should expect.

One metric to consider is household income. There seems to be trimodal distribution of incomes in the area.

Depending on the relative quality of the building you are considering investing in, you will attract tenant from one of three of these cohort peaks

We can also check out poverty rates, which are at 17%. This is rather high, but considering the above income distribution, its to be expected.

SNAPS (supplemental nutrition assistance program) rates are at 14% of households. This is actually considerably lower than the surrounding areas.

Lastly, educational attainment rates for bachelors degrees are at 11%. This value could be better.

All in all, based on the data, my system has ranked this area a D, albeit on an A to F scale.

Hope this helps!

Any experience investing in Whitaker, Pittsburgh Pa?

Any experience investing in Whitaker, Pittsburgh Pa?

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