Starting Rental Investing Pittsburgh

13 Replies

Does anyone know good regions for cash flow in the Pittsburgh area?

Looking for something either in the South Hills or in the city.

Planning to live there for a year or two and then rent it out.

Thoughts? 

Thank you in advanced,
Andrew

@Andrew J Betzold what are you looking for cash flow wise? 

You could look in McKees Rocks, Sheraden, Beltzhoover, Mt Oliver.

Spreadsheet magic will look wonderful. 


However I think that if you are living there you should consider a blend of appreciation potential and cash flow since you can get in with a lower down-payment and maximize long term ROI. Going after highest cash flow on a spreadsheet usually brings you to more management intensive areas which aren't great for a first time landlord.


Thanks Anthony. I am looking for at least the 1 % rule, 50% expenses. I am finding it hard to meet. What are your thoughts on the South Side, either flats or slopes? I like Dormont and the surrounding areas as well. Would I be better avoiding the MLS?

Is buying usually better than renting even if I do not make much of a gain?

Originally posted by @Andrew J Betzold :

Thanks Anthony. I am looking for at least the 1 % rule, 50% expenses. I am finding it hard to meet. What are your thoughts on the South Side, either flats or slopes? I like Dormont and the surrounding areas as well. Would I be better avoiding the MLS?

Is buying usually better than renting even if I do not make much of a gain?

If you are just looking for the 1% rule then Flats would be good. I live in Dormont and have over 50 units in Dormont and it's great, but getting expensive. As a new investor avoiding the MLS will come with some difficulties unless you are self sourcing, and even then it can be challenging.

Number 1: When you are new you don't understand the process which can make it difficult to navigate. 

Number 2: If you buy from a wholesaler you typically don't have inspection contingencies and your deposit is often nonrefundable. 

Number 3: Off market is likely going to need to be a cash, or like cash, purchase. The caveat being if you are souring leads yourself and can find someone that will seller finance to you, which though you hear a lot about on the internet isn't as common in practice in the B class and above 2-4 multifamily type areas.

Some other reasons buy off market can be challenging for a beginner. 

Buying is a good decision vs renting anyway because you are building equity. If you house hack a 2-4 unit it's the best decision to get started in my opinion because the numbers don't need to be as good for it to still be a worthwhile investment.

I'm an OOS and if I would have lived in PGH I would definately househack. I think it's the est way to get into the REI world and with all the great loans that you guys have there can make your investments so so easy...

I don;t think it's difficult to find properties with the 2% rule in C neighborhoods. If you want better tenants than it will be harder.

I work with an agent' mainly because I'm OOS but I think that if you find a good one so it will be vwry handy and helpful (and until you sell the property you won't have to pay hime/her anything). They also can reffer you to great people. only pluses from my side.

Good luck!

Pittsburgh is very interesting city. Come to ACRE www.ACREpgh.org when we open back up. It is priced by the street in some locations. We do well in the outskirts of the city. But the city is getting very expensive quickly so be on the look out. Hedge funds just got here and are buying everything up so deals are far and few between. 

Pittsburgh is very interesting city. It is priced by the street in some locations. Some areas are bad others are so expensive it is insane. We do well in the outskirts of the city. But the city is getting very expensive quickly so be on the look out. Hedge funds just got here and are buying everything up so deals are far and few between. 

Are you willing to househack? With current interest rates you could still cashflow even in Mt. Lebanon if you've got an owner occ loan. Obviously stay away from the $500k things right on Washington. If you're going to be here 2 years you could pick up 2 single family homes in that time though! I cashflow about $200/mo (after accounting for expenses and stuff) on a 4 bedroom that I used to live on. I could get another $200-300/mo if I upgraded it. My current house would also cashflow and I bought it in March with 3% down (just can't get the wife to agree to moving the clan every year :D). Rents can reach $2200-$2500, so there's some room.

Hmm it seems though most houses in the flatts are around 200,000+ and rent appears to be around 1700+. So I do not know if I will be so lucky to get 1%. Unless I am looking at the wrong houses.

But good to know. It does seem worth it buying for equity. Is there a metric you would look for if you were trying to live there? Maybe it is less important to hit numbers when you are going to live there as long as the property goes up in value.

Thank you for all your input.


Originally posted by @Anthony Angotti :

If you are just looking for the 1% rule then Flats would be good. I live in Dormont and have over 50 units in Dormont and it's great, but getting expensive. As a new investor avoiding the MLS will come with some difficulties unless you are self sourcing, and even then it can be challenging.

Number 1: When you are new you don't understand the process which can make it difficult to navigate. 

Number 2: If you buy from a wholesaler you typically don't have inspection contingencies and your deposit is often nonrefundable. 

Number 3: Off market is likely going to need to be a cash, or like cash, purchase. The caveat being if you are souring leads yourself and can find someone that will seller finance to you, which though you hear a lot about on the internet isn't as common in practice in the B class and above 2-4 multifamily type areas.

Some other reasons buy off market can be challenging for a beginner. 

Buying is a good decision vs renting anyway because you are building equity. If you house hack a 2-4 unit it's the best decision to get started in my opinion because the numbers don't need to be as good for it to still be a worthwhile investment.

 

Originally posted by @Ken George :

Pittsburgh is very interesting city. Come to ACRE www.ACREpgh.org when we open back up. It is priced by the street in some locations. We do well in the outskirts of the city. But the city is getting very expensive quickly so be on the look out. Hedge funds just got here and are buying everything up so deals are far and few between. 

I'll have to check it out. 

I am willing to house hack, looking primarily in south side for buying right now as this is where I would like to live.

Originally posted by @Matthew Jordan :

Are you willing to househack? With current interest rates you could still cashflow even in Mt. Lebanon if you've got an owner occ loan. Obviously stay away from the $500k things right on Washington. If you're going to be here 2 years you could pick up 2 single family homes in that time though! I cashflow about $200/mo (after accounting for expenses and stuff) on a 4 bedroom that I used to live on. I could get another $200-300/mo if I upgraded it. My current house would also cashflow and I bought it in March with 3% down (just can't get the wife to agree to moving the clan every year :D). Rents can reach $2200-$2500, so there's some room.