Flipping in Pittsburgh?

Question

I have been analyzing a lot of data from different markets and it seems like Pittsburgh is a hot place to be? We previously flipped in the Des Moines market and specialize in first time homebuyers. Can we make a go of it in Pittsburgh?

Jim K. · Answer

Currently, there is ONE (1) residential property in Pittsburgh selling for less than $30K on Zillow. It is actually a duplex:

8519/8521 Frankstown Rd, Pittsburgh, PA 15235 This is in the East Hills, just past Homewood.

I invite you to look at the listing. Better yet, check it out on Google Maps.

Anthony Angotti · Answer

As an out of towner it is exceptionally hard.

You really need to be self sourcing your own deals and the houses are hold so require a lot of attention during the renovation process.

Jim K. · Answer

Oh come on, Dave, live a little, sink $150K to fix up the Blair Witch Project in Homewood East and people will come!

David Coleman · Answer

Hahaha! Yes!  I’ll live a little, if you live a little with me!  50/50 equity split with a negative CoC return for the next several years?

Kelly Orth · Answer

I want to buy homes, fix them up and sell them for profit. I have noticed that there are large number of homes in Pittsburgh that are less than $30,000. We like to buy the cheap homes, do a quality rehab/update, and sell them for a profit.The finishes would cater towards first time home owners who don’t necessarily expect to have all the fancy stuff but want a nice home with updated electrical, plumbing, HVAC, roof, or whatever it needs. I like to focus on bringing value to the neighborhood to instill homeownership pride

Liam Morris · Answer

Kelly,

Pittsburgh is a great place to flip properties, but it's no different than anywhere else in the country.  You need to find the right properties at the right price.  There is a lot of opportunity, but there is also intense competition to source the right projects.

For the most part, you'll be extremely lucky if you find something on the MLS, or realtor.com, or any other site you use priced well enough for it to be worth your time and money in the project.  There's a reason certain properties are listed so low...

I would recommend that you get onto a wholesaler's email blast list and start watching what comes through there.  You'll still have a bunch of competition, and the best opportunities come from personal connections and canvassing.

Again, lots of opportunity, but be careful of low prices too good to be true.  Usually anything under $50k, and especially under $30k in Pittsburgh is going to have major, major issues whether they're apparent from the pictures or not.

Kelly Orth · Answer

Ty, we plan to live there and do the project ourselves.

Jim K. · Answer

I'll have my Core Four call your Core Four after I gin up a spreadsheet...

David Coleman · Answer

@Jim K., this house isn’t worth it.  Not even close. Major structural damage/footer issues.  It looks like years of run-off from this hill above scoured the left side of the rear duplex footer.  Major lean and separation from the main structure.  Unless you have a good contractor that knows how fix major issues for pennies on the dollar, the level of work that would go into this property wouldn’t be supported by the comps…or the neighborhood.

Dave

Eric Bilderback · Answer

Flipping Pittsburg, dude I think you have the next big time HGTV show on your hands.  Although Flipping in the Pitt is pretty sweet too.

Do it!

Flipping in Pittsburgh?

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