Investing in Pittsburgh?

[Anne Christensen]

Hi,

I'd love to hear success stories from investors in the Pittsburgh area! I am researching the city and surrounding areas and seriously considering it for my first BRRRR. Can anyone recommend a great REI friendly agent? I read a few reviews on an agent that came up on BP and they were not great. Many thanks!

[Jamie Dietz]

I always recommend an agent that is also a successful investor.  Feel free to reach out to discuss your goals and I can connect you with the right agent for your search.  

[Jonathan Greene]

Less than .1 percent of real estate agents are really investor-friendly and invest themselves. Most don't know anything at all about investing and a lot want to work with investors, but don't invest so don't have the experience.

Pittsburgh is a good investment market so there are going to be strong investor-friendly agents there. I don't personally know one, but I have friends who has a couple doors there who I could put you in touch with. They are a couple and have nothing to pitch, just investors.

[Jeremy Taggart]

@Anne Christensen BRRRR can still work here on the equity side of things. Plenty of fixer upper homes that have good margins after rehab. You just won't really have a ton of positive cash flow right off the bat if you are refinancing at 70-80% LTV at today's interest rates.

Multi family you can get both but those are tougher on the equity side of things since they cost more to rehab compared to a single family home. So won't tend to find as many oppotunities that work to maximize equity gained like single family homes.

For single family homes you'll want to stick to neighborhoods under about $225k ARV in order to have rent/price ratios that make sense on the backend for holding as a BRRRR. In most instancdes anything higher than that is more flip territory now with the higher interest rates.

[Dave Currence]

@Jeremy Taggart

You seem knowledgeable about Pittsburgh…I have a buddy who has a couple hundred doors there (single family and small multis) he deployed all his cap a while ago and has done well there. In your opinion, and from what you see on the ground, are there still opportunities there in multi-family acquisitions? A variety of unit sizes would work, but up to 100 doors is possible for us, I believe. I’m probably going to make a trip over there from NYC sometime in the very near future, but would love to hear what you have to say. Thanks!

[Nicholas L.]

@Anne Christensen

where are you located?  Pittsburgh is a great market but there can be major variations among and within neighborhoods. 

[Jeremy Taggart]

Quote from @Dave Currence:

@Jeremy Taggart

You seem knowledgeable about Pittsburgh…I have a buddy who has a couple hundred doors there (single family and small multis) he deployed all his cap a while ago and has done well there. In your opinion, and from what you see on the ground, are there still opportunities there in multi-family acquisitions? A variety of unit sizes would work, but up to 100 doors is possible for us, I believe. I’m probably going to make a trip over there from NYC sometime in the very near future, but would love to hear what you have to say. Thanks!

Yup I like the small-mid size multis like 5-50 units. Big enough that you aren't competing with newer investors/house hackers but small enough that you aren't competing with institutional money. You also see those marketed improperly or not managed very well quite often which presents opportunity for value add. 

We have mostly 2-4 unit buildings compared to the larger stuff but that 5-50 range can be a good space to find deals in. 

[Anne Christensen]

Quote from @Jeremy Taggart:

@Anne Christensen BRRRR can still work here on the equity side of things. Plenty of fixer upper homes that have good margins after rehab. You just won't really have a ton of positive cash flow right off the bat if you are refinancing at 70-80% LTV at today's interest rates.

Multi family you can get both but those are tougher on the equity side of things since they cost more to rehab compared to a single family home. So won't tend to find as many oppotunities that work to maximize equity gained like single family homes.

For single family homes you'll want to stick to neighborhoods under about $225k ARV in order to have rent/price ratios that make sense on the backend for holding as a BRRRR. In most instancdes anything higher than that is more flip territory now with the higher interest rates.

[Anne Christensen]

This is incredibly helpful advice!  Thank you so much. 

[Anne Christensen]

Quote from @Jonathan Greene:

Less than .1 percent of real estate agents are really investor-friendly and invest themselves. Most don't know anything at all about investing and a lot want to work with investors, but don't invest so don't have the experience.

Pittsburgh is a good investment market so there are going to be strong investor-friendly agents there. I don't personally know one, but I have friends who has a couple doors there who I could put you in touch with. They are a couple and have nothing to pitch, just investors.

[Anne Christensen]

Thanks so much Jonathan!  I would love to connect with them and you. 

[Anne Christensen]

Quote from @Nicholas L.:

@Anne Christensen

where are you located?  Pittsburgh is a great market but there can be major variations among and within neighborhoods. 

[Anne Christensen]

Hi Nicholas,

We are just outside of Washington, DC in Montgomery Cty. MD.

[Anne Christensen]

Quote from @Jamie Dietz:

I always recommend an agent that is also a successful investor.  Feel free to reach out to discuss your goals and I can connect you with the right agent for your search.  

 Thank you Jamie,  I'll give you a call.  :) 

[Russell Brazil]

Quote from @Anne Christensen:

Hi Nicholas,

We are just outside of Washington, DC in Montgomery Cty. MD.

I'm in Moco tok

Read through @Jim K. Posts, who I can't seem to post. He invests in Pittsburgh.

If you live in MoCo, I suspect investing in areas like Jim does will come as an enlightening experience to you. 

[Jonathan Greene]

Quote from @Anne Christensen:

Thanks so much Jonathan!  I would love to connect with them and you. 

Just send me a DM and I will give you their cell. They only have two units there, but sometimes those are the best connects for new investors in the area to get started.

[Elise Bickel Tauber]

Just wanted to chime in. Highly recommend Austin Daniel 724-622-9096 for an investor friendly agent.

[Alex Hileman]

There are a lot of investor friendly agents in Pittsburgh, and we see a lot of out of state investors here. I would recommend interviewing a few and coming to town over a weekend to meet with a few agents. 

Being out of state, you will want an agent who has good relationships with reliable inspectors, title companies, contractors, property managers, lenders, wholesalers, insurance agents, other RE agents, etc. There are so many people involved in a real estate transaction and it's important for everyone to work together so that the transaction actually closes, and closes on time. It's a relatively small town and a lot of us run into each other as we do business. 

It's your agent's job to play nice with others while also keeping your best interest top of mind. You're paying for your agent's connections, their negotiating skills, and their local knowledge and experience.

I would start with telling your agent what your investment goals or strategies are, and how they've helped others achieve that goal. 

[Gary Swank]

Hi Anne, I am a 23+ year realtor who works with many investors in the Pittsburgh area. Many of my clients, and investors in general, have a lot of success in the Pittsburgh market. The buy in is a lot more budget friendly and values are stable and growing. But it pays to really know or at least learn about the area, as properties and neighborhoods change dramatically. I've lived here my whole life and know the market and area very well. I would interested to hear more about your specific plans and goals. Feel free to reach out...thanks, Gary