Using BRRRR in Pittsburgh which neighborhood is best?

Question

So after reading books listening to podcast and closing on my first house hack. I feel I am ready to take the next step and start my first BRRRR project!

Pittsburgh is the market I live in and I see tons of opportunity here! However, as small as Pittsburgh may seem it has 90 boroughs. Which begs the question which borough gives the best opportunity to accomplish a BRRRR deal with 35k in cash?

Nathaniel Buck · Answer

Hey Anthony, I'm in a similar spot as you – just starting out and from Pittsburgh too. I'm not sure that is a "best" neighborhood for BRRRRing, but I'm searching in decent, class B areas I know well and trying to find a great deal. @Jeremy Taggart's numbers seem right to me (properties with an ARV of 100-150k). So, I'd just suggest doing your homework on the neighborhood and running your numbers to make sure you're getting a good deal, leaving plenty of room for error.

Anthony Braxton · Answer

@Jeremy Taggart

Thank I appreciate it

Jeremy Taggart · Answer

@Anthony Braxton

Typically the best areas for BRRRR's are where the ARV's are between 100-150k. That's where the price to rent ratios are good enough to cash flow on the backend while still giving you enough margin to get a decent chunk of equity. Once you get into the areas where the ARV's are less than 100k your margin for error is more slim and sometimes tougher to get that chunk of equity you need to be able to pull all/most of your cash back out. One unknown or mishap on the rehab and it can break your budget. Whereas on the other end of the specturm, once you get into the higher priced areas it's tougher to cash flow after the refi since the price to rent ratios aren't quite as good.

Anthony Braxton · Answer

@Kristopher Tursky Yes sir!

Kristopher Tursky · Answer

@Anthony Braxton are you planning to spend $35k on the buy and rehab?

Using BRRRR in Pittsburgh which neighborhood is best?

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