Investing in Surrounding PGH Areas

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Investing in Surrounding PGH Areas

Ana Ceron
Pittsburgh, PA · Member since 2020 · 2 posts · 1 vote

Hi there. First-time poster here, very new member of BP.

I'm a renter who is not looking to buy my own place -- unless I can house hack w/in a couple miles of downtown.

Because I believe the chances of finding my ideal house hack to be pretty slim, I'm thinking about buying a SFH or MFH somewhere within a one-hour driving distance from Pittsburgh. My goal is to purchase a property in 2021, but learn the most I that can about the local market in the meantime.

My plan so far is to get a mortgage to purchase a property for $70K-$90K that needs minimal work ("minimal" as in a coat of paint, maybe a new mailbox, etc.), or already has a tenant/tenants in place.

From what I've been seeing online, seems like my best bet would be in the areas/counties surrounding Pittsburgh.

I've heard Erie is a good option. Jeannette is street by street. Someone on a forum here warned against New Kensington. Another poster recommended Latrobe, and another said Charleroi had been working out OK.

I moved to Pittsburgh three years ago, so I'm still learning my way around. What areas would be good for my price range that would also offer a reliable tenant base?

Or is what I'm looking for unreasonable? What can I expect out of my price point?

Thanks for any advice.   ana.

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Jeremy TaggartBusiness Member
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
6y

@Ana Ceron You can get a duplex in a C class area in a surrounding county outside of Allegheny for that price range that'll bring in $1200-$1400 in rent that's probably what I would focus on to start with. That price range closer to the city you are getting into the rougher neighborhoods. Single families are okay but they won't cash flow as well as a duplex will if you are buying something turnkey. I'm more of a fan of single families if you are BRRRRing or buying a fixer upper that will get you a good chunk of equity. Duplex for the turnkey stuff. Don't count yourself out for a house hack though there's still opportunities out there just need to be a little more patient nowadays. They aren't sitting ducks like they used to be a few years ago. 

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  • Brandon Konek
    Member since 2020 · 1 post · 1 vote
    6y

    @Ana Ceron hey Ana! I grew up the first 25 years of my life in Charleroi so if you have any questions about those areas, feel free to reach out. Washington and Jefferson college is in the heart of Washington, PA and you could tackle the college crowd with older style Victorian homes in some areas.

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  • Eddie Werner
    Property Manager · Pittsburgh, PA · Member since 2012 · 267 posts · 136 votes
    6y

    Congrats on seeking out your first rental!  Your price range is solid, you can find a lot of homes around Pittsburgh and surrounding areas for that price.  I would pick out a few areas and drive through them to determine which areas you like.  Run rental rates for the neighborhoods and drive by houses for rent to get a feel for the street and general area. Since it's your first investment I would stick to a 3 bedroom house or a duplex with at lease 2 bedroom, 1 bathroom per side with split utilities (water, sewage, gas and electric).  We manage for a lot of owners who buy in McKees Rocks as one example.  You can buy near turn key for 40-50k and a 3 bedroom there rents for $900 or more all day.  

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  • Joe M.
    Erie, PA · Member since 2018 · 413 posts · 348 votes
    6y

    Im from Erie and have family in Jeannette.  Not sure how I can really help, but for both areas, be careful of the areas if you choose to go there.  Both can have some rough areas

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  • Jeremy TaggartBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
    6y

    @Ana Ceron You can get a duplex in a C class area in a surrounding county outside of Allegheny for that price range that'll bring in $1200-$1400 in rent that's probably what I would focus on to start with. That price range closer to the city you are getting into the rougher neighborhoods. Single families are okay but they won't cash flow as well as a duplex will if you are buying something turnkey. I'm more of a fan of single families if you are BRRRRing or buying a fixer upper that will get you a good chunk of equity. Duplex for the turnkey stuff. Don't count yourself out for a house hack though there's still opportunities out there just need to be a little more patient nowadays. They aren't sitting ducks like they used to be a few years ago. 

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  • David Lee Hall, III
    Rental Property Investor · Pittsburgh, PA · Member since 2019 · 530 posts · 511 votes
    6y

    Erie is a bit more than an hour drive, but your price range is solid and mirrors what I like to buy. Beaver County for example has an average home price of $84k so you can get a very standard house there, hop on the parkway and be in town in an hour or less (traffic depending). For house hacking, I would recommend to stick to 24-hour centers. This would be around schools and hospitals. W&J was mentioned, and the 5 block area between it and Wash. Hosp. would be great. Likewise you could look around Geneva in Beaver, or even Slippery Rock for a tad longer commute. Those areas will all be cheaper than looking at hubs in town like Oakland. If you are looking to commute to town, my recommendation - and you will need to really look for a place because your price point it low in that area, would be to try around Passavant and LaRoche in the North Hills. No tunnels that way. Given the average price is higher there, try driving for dollars on the weekends. Stop in yard sales and ask if they are moving. Look for places with overgrown shrubs/peeling exterior paint and take down their addresses. You could then use skip tracing technology to contact the owners or if you are not comfortable, find a wholesaler here to work with them to see if they can get it for you under contract. 

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

    @Ana Ceron i would take the advice of @Jeremy Taggart and I will also add that you really need to get to know the area before you make a move. How do you do this? Drive the streets. Day and in the evening. Weekend and weekdays. You will get a good feel for the neighborhood. Talk with locals, mailmen, trash collectors etc.. They will be a good resource. Talk with other investors who know the area well.  You can do some online research for crime and school data.

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  • Ana Ceron
    OP
    Pittsburgh, PA · Member since 2020 · 2 posts · 1 vote
    6y

    Thanks for all the responses, guys! Lots of good stuff here.

    @Brandon Konek -- What a relief it is to find that someone I know irl is finding success in this biz. Might take you up on that offer. Always good to get the scoop from someone with firsthand knowledge.

    @Eddie Werner -- Yep, good tip. I drove around Jeannette over the weekend and, well, learned a lot. Planning on snooping around McKees Rocks and the Mon Valley next.

    @Joe M. -- Yes, actually, including Erie in my post was a bit of a typo, but I get what you're saying. Drove around Jeannette for a while on Sunday and I saw both rough and pretty. Such a shame, the local history there is really interesting, and there are still so many beautiful buildings.

    @Jeremy Taggart -- I love that you mention neighborhood ratings. That's actually really helpful -- it kind of articulates what I'm trying to pursue with my price point. Not the best neighborhood, but not the worst, so need to expand my search radius. I'm noticing, though, the the rental rates for SFHs hover around $700-$800 -- and it doesn't seem (at least to my very in-expert eyes) that renovating something to hold/rent would improve my cash flow. Harder for me to gauge duplexes, though, with the info I can get online. Also -- I come from South Florida, where property value appreciation is almost as tangible as the roof over a house. But it seems like here in SW Pennsylvania, people don't take too much stock in value appreciating -- at least in the types of communities I'm considering. Any thoughts on that? Like, I'm just not sure how I feel about that, you know?

    @David Lee Hall, III -- Yes, Erie is farther away than an hour's drive. I made a mistake by not deleting that before I pressed the Post button, I was sleep deprived and brain fried. Thank you for suggesting Beaver County. Have been finding some interesting things there.

    @Alex Deacon -- Great advice. First I want to make a list of places to scope out, then once I get a list together of some interesting options, I'll start drilling down for more data. Any areas that you especially like?

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  • Jeremy TaggartBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
    6y

    @Ana Ceron You can get a mostly turnkey 3BR that'll rent for $900-$1000 in a lot of C class areas in your price range. Might have to venture a little further out from the city to stay out of the war zones, but there's plenty of areas that'll give you those numbers. As long as the area isn't super depressed and undesirable, renovating it nicely will bump your rents up. Even in the less desirable areas people will pay more for nicer places. Same goes for duplexes. Areas where duplexes are going for less than $100k you can get $800-$900 for a 2BR apartment if the unit is big, has a nice layout, and is fully updated. I like to find ones that are in the nicer pockets of the lower priced areas. 

    Yeah the more cash flow friendly areas won't see as much appreciation as the nicer areas but you can try and get into an area that is in the path of progress to get the best of both worlds. Cash flow now and hopefully appreciation as the neighborhood turns for the better. Lots of neighborhoods are seeing that with all of the recent development going on in the Pittsburgh area the past few years. 

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