invest in Pittsburgh
You lookin’ for cash flow or appreciation?
cash flow
@Adam Ashkenazi hard to go by zip codes here. You can have A neighborhoods in the same zip as D neighborhoods. Anywhere can work really as far as areas goes. Are you looking for something turnkey or wanting to go the BRRRR route?
@Jeremy Taggart wanted to tag along on this thread. We have an investment property ( 2 units) in Pittsburgh North side (Mexican War Street). We bought it 4 years ago intending to move there one day ( rent out one unit and live in one). However, it hasn't happen and will most likely not happen. We have decided to rent out both units to get some pretty decent cash flow. We are looking to buy another investment property with cash flow either in the city or outside of the city. Any guidance?
@Jayda Chi Love the War Streets. One of my favorite neighborhoods. Tough to cash flow there anymore though now that prices have gone up so much in the neighborhood, but plenty of other options.
I tend to favor B-/C+ class areas for cash flow while still being able to get decent tenants. Trying to focus on the nicer sections of those areas. Carrick, Swissvale, Homestead, Brighton Heights, Crafton Heights, Carnegie, Troy Hill, Coraopolis, Millvale, Etna, to name some that might work. Not an exhaustive list. So hard to generalize entire neighborhoods here though with it being very street by street in a lot of them.
You can also go out into the surrounding counties to get even better cash flow from day 1 but might not see quite as much appreciation as you would closer to the city. Mix of both can always be good.
@Jeremy Taggart yeah we would love to buy another one in Mexican War Streets but can't find any listings that fit our needs. How do you classify B-/C+ neighborhoods? What is the benchmark? What class do you consider War Streets then? Since I am a new to REI I get confused with people talking about class of a neighborhood.
Thank you for the list of the neighborhoods. These are exactly the neighborhoods that I am interested in. But, I am also interested in neighborhoods that are already on everyone's radar - Bloomfield, Oakland, Garfield, Mt. Washington and Garfield. What is your thoughts on these neighborhoods? Again, thank you so much for your time in answering my questions.
Congrats on beginning your journey investing in Pittsburgh! I own a real estate brokerage as well am an investor myself. Right now we are seeing a lot of investors trying to cash in on the market by selling at pretty high prices and with the low inventory things are still going. I agree with Jeremy. Best areas are B and C neighborhoods for cash flow. I've seen some really good deals and numbers in Carrick, Sharpsburg, Millvale, Brentwood, Brookline, Beechview, Overbrook, etc. I absolutely suggest using 2-3 sources to double check rent values as those numbers are changing a lot too.
Most of my investors consider Mexican War Streets, Deutschtown, Bloomfield, Lawrenceville, etc to be A-/B+ areas. I do think it's harder to get good cash flow in those areas due to the high demand but still worth keeping an eye out!
Thinking about buying in Pittsburgh but am not familiar with the area. I found a lot of condos for lack of a better term reasonably priced in the $135k-$250k range in the heart of the city. Found some SFM and MF in near by neighborhoods that were going for a lot more than the City Condos. I saw that the condos were sitting for awhile and had several price drops. They looking stunning. They are cheap. What am I missing here? Why are they not selling or renting out well? Thanks for your help.
Hi Joe! Alot of properties in Pittsburgh vary from block to block. What seems like a good deal could be a disaster. Feel free to contact me if you have any questions about a particular block or neighborhood. My team and I manage over 500 units in Pittsburgh and surrounding areas, and we'd be happy to get eyes on a potential purchase for you.
Hi Dean! can i ask you what do you think about neighborhoods like south side flats/slops, carson, mount oliver and bellevue?
I'm looking for appreciation.
thanks,
Hi @Leon Blyacher !
I love Bellevue for appreciation and cashflow - it seems to be on an upward swing, but early enough in the swing that you should be able to grab a good amount of appreciation.
From what I have heard, crime has gone up a good bit in Southside Flats - it's more of a party scene, so that's just something to consider with tenants. The plus side is that properties are relatively cost effective and cashflow decently. Appreciation may be decent because there are some really nice new properties in the Flats and the Slopes already. With Mount Oliver, just be aware that it is not part of City of Pittsburgh and the taxes are relatively high. I know people that invest in the south side of the city and are happy with their investments (more so in Carrick than Southside Slopes or Flats), but I am far more familiar with the north side of the city myself.
I'm happy to connect further if it's helpful :)
Hi Sam Sam Schaefer
Thank you for your response. It was really helpful. Are you an investor or realtor or just leave in Pittsburgh :)?
After a little research I found that Millvale and Reserve Township are pretty good places to invest in. Am I right?
Quote from @Leon Blyacher:
Hi Dean! can i ask you what do you think about neighborhoods like south side flats/slops, carson, mount oliver and bellevue?
I'm looking for appreciation.
thanks,
We have a great deal of success on the South Side, although demand seems to be cyclical with local college students. We're getting excellent rents there too. Investors seem to have luck finding properties in need of light cosmetic improvements that help raise the value of the property. I'd say the same for Bellevue as well.
Hi @Leon Blyacher !
I am from and currently live in Pittsburgh. I am also an investor with a real estate license (I don't actively look for clients as a realtor but am happy to help friends and family if they need me).
I'd agree with that. You should see decent appreciation in Millvale and Reserve.
My wife and I have just started researching (and will be taking action) on the Pittsburgh market for an investment property (SFR, passes the 1%/50%, and can generate at least $200/door positive cash flow) in 2023. We are looking for any insights, neighborhood perspectives, or team recommendations for the Pittsburgh area. Welcome the opportunity to connect/network on this forum.
looking forward to the journey.
Quote from @Ali Powell:Pittsburgh has a lot to offer investors. The buy-in is often better than other more saturated markets. While it had been a medical town for many years, it's fastly becoming a huge tech hub. That translates into more and more people moving to the area looking for housing of all sorts. The trick is to understand the neighborhoods as that can change dramatically within a very short distance. I've lived here my whole life and know the area very well.
My wife and I have just started researching (and will be taking action) on the Pittsburgh market for an investment property (SFR, passes the 1%/50%, and can generate at least $200/door positive cash flow) in 2023. We are looking for any insights, neighborhood perspectives, or team recommendations for the Pittsburgh area. Welcome the opportunity to connect/network on this forum.
looking forward to the journey.
I am a new out of state investor (from Florida) looking to learn more about and invest in Pittsburgh. It came on my radar as a potentially good place to be because of its relatively low entry point and decent rents in a good sized city with lots to offer and lower crime than many other cities. I am happy to connect with anyone who works with investors in the area, and hope to visit very shortly as well.