Pittsburgh: Young New Dude Looking for Real Estate

[Account Closed]

Hi all!

My name is Dan and I am moving to the great city of Pittsburgh in just a few short weeks. I've also been learning as much as I can about real estate investing while here in Houston. Can someone tell describe for me the basics of the SF/MF markets in Pittsburgh? Is PA a landlord-friendly state?

Many thanks,

[Matt Faix]

HI @Account Closed - Welcome to the site. What neighborhoods in Pittsburgh are you looking at? 

[Christian Hutchinson]

I'm not in the Pittsburgh area.  So I'll give you some basics of where to search in any city, especially the "Rust Belt"(I'm a Detroiter), I have 11 Units throughout Detroit and the Suburbs. My wife and I are 31 and we have FT jobs, this is just a side business(a lucrative one however).

University Districts, So score a Duplex/Home with income suite in University Areas. Meaning Campus Police Patrol there.

Go to a place where the young kiddies move to when they first get out of college(near the bars, clubs, boutique shops).  

Remember in this situation, They are paying your mortgage, and they are subsidizing your equity position.  Plus you save money every month because you have reduced living expenses, or even positive cash flow at the end of the month.

This is a "get rich slowly" business.  You need to mindset, I am going to have $400-$700/month in my pocket. You will live in the house for 3-5 years, get married/buy another home, and you get to rent out both units. Remember your home is a performing asset/profit center.  If you need $400 to fix the plumbing, or $400 to go to Boston for a Steelers VS Pats game, invest in the plumbing.  You have a $100K+ asset thats appreciating, provides living quarters, cash, tax advantages, etc.

The asset comes first. Also, INSURE INSURE INSURE don't be cheap. Lastly Credit/Background Check everyone, even your best friend's cousin, it cost $30, charge a $50 Application Fee. It attracts a certain level of tenant, your tenants are a revenue stream, not a person. If they someone doesn't gross 2 times the monthly rent(if utilities are included), or 3 times the monthly rent(if they pay their own) DO NOT RENT TO THEM.  They can't afford it.

Make sure you spell out building rules, where people can smoke cigarettes, drink beer, when are quiet hours, how many people can they have on property before they notify you, how long can a visitor stay before they request permission(I do three nights).  If they have a Boyfriend/Girlfriend who stays over A LOT, and they want to give them a key, the Boyfriend/Girlfriend gets a Credit/Background Check.

Goodluck with everything.  I can't help you with PA Law, but those are some tips of how to run the business on the ground.  It won't find it in a book, but any person in this business will gladly tell you how to handle it.

[Ian Hoover]

Here in Pittsburgh we are a commonwealth state, research it but I would say the state is very tenant friendly.

[Account Closed]

Thanks for the welcome, guys. I'm looking forward to being a part of this community and getting away from the guru crowds. Christian, thanks for the advice on Rust Belt cities. Ian, what kinds of rules/regulations make Pennsylvania tenant-friendly?

[Account Closed]

Hi, Matt! I'm planning on living in Monaca and looking and mostly west Pittsburgh neighborhoods. Where do you primarily invest?

[Matt Faix]

@Account Closed mostly in the west as well. We're looking in Carnegie, Crafton, Greentree, Scott, and Heidelberg

[Keoni V.]

Hi Dan,
Welcome to the site. Great question. I too will be relocating to Pittsburgh soon. I hope to see you around.

[Collin Cook]

Hi  I am living in the city and am rather new to real estate investing myself. This may be a "tennant friendly" city but it is a landlords market.  Lots of renters and reasonably priced houses to buy.

 Hope to see you around,

[Jason Cohen]

Dan - I would consider the neighborhoods matt mentioned as somewhat stable and with few barriers to entry. However, do not expect too much on the appreciation side in those particular neighborhoods, significant year over year rent increases,  or middle-high to high class tenancy. 

It really depends on what type of clientele you're looking for. If you're going for A Grade, where you want to be is more shadyside, squirrel hill, friendship, Oakland, mt Lebanon, Southside and Dormont. But if you want to play in the more speculative / high stakes areas that are gentrifying the most recently - you would go for point breeze, east liberty, downtown and lawrenceville. Happy to help with anything further. - Jason Cohen Pittsburgh