Moving soon - Investing home in San Diego or Pittsburgh later?

Question

I will be living home until August before I move from San Diego to Pittsburgh. Once I move I will start working full time a 9-6 job making decent money in the financial services industry.

I'm hoping to travel soon and before I move, but nonetheless I have over 9 months before the move. With what I have saved up now plus earnings from a part time job, I'm trying to determine if I should A) Get started now, here in San Diego or B) Wait until late 2016 when I move to Pittsburgh.

This would be my first real estate move. In SD, I could execute some sort of BRRR play with my parents involved but in Pittsburgh I could acquire a 2-4 MF unit to house hack. What do you guys think? Obviously, I am completely unfamiliar with the Pittsburgh RE market.

edit: A note - my family is based in SD and I have the intentions of coming back to SoCal a few years down the road.

Account Closed · Answer

Those are good spots but as @Logan Drew indicated, they are a bit pricey.  However, coming from Southern Cal you probably won't think so.  You may want to check out Lawrenceville, Bloomfield, Garfield, and Friendship as well.  Lawrenceville and Bloomfield are both good locations but can also be pricey (not quite at the level of Shadyside though).  I would also check out North Point Breeze.  This neighborhood is adjacent to Shadyside, East Liberty (tons of new development), Wilkinsburg, and Homewood.  Wilkinsburg and Homewood aren't good areas.  Wilkinsburg is starting to improve though.  North Point Breeze is very close to Bakery Square (newer development, Google's Pittsburgh office, etc), it's on the East Busway so it's convenient to downtown, and prices are still relatively reasonable given it's more of a traditional neighborhood.  Additionally, you can take advantage of it's proximity to all of the nightlife, restaurants, etc. in Shadyside and East Liberty without the price.

Dominic Lucarelli · Answer

Coming to the Burgh? Awesome! I've got to echo most of what these gentleman are saying. They beat me to the punch.

So, welcome to the neighborhood!

Jeremy T. · Answer

@Austin Mudd

You could buy a portfolio of multi family properties in Pittsburgh for what it would cost you to get started in SD.  Ok, that may be stretching the truth, but seriously, be patient and pick your spot here in Pittsburgh.

If you house hack, you can almost certainly have a significant amount of equity in a multi-family (if not own it free&clear) in a decent neighborhood by the time you plan on heading back to California in a few years.

Logan Drew · Answer

Great call on mentioning Lawrenceville and Point Breeze.  I absolutely agree with those as prospective markets to research and consider.  All in all, there are a ton of great opportunities Pittsburgh and plenty of success in your future if you do the homework.

Austin Mudd · Answer

@Logan Drew and @Jeremy T. , Glad to hear you two have knowledge about Pitt! I will definitely have to reach out to you and connect to learn more about the area.

Account Closed, thanks as well. I will be working downtown around Market Square. I've been told that I should look to live in either Shadyside or Southside from other past interns and from a buddy who is a Pittsburgh native. I've been to the city twice for interviews and such, but it was brief so I did not see very much.

Account Closed · Answer

Thanks @Logan Drew!

Account Closed · Answer

I agree that it will be much easier to break into real estate investing in Pittsburgh rather than SD given the price points.  What area of the city will you be working in?  Given that you plan to house hack, I think figuring out which neighborhoods are convenient to work, offer decent 2-4 units at reasonable prices, are safe, and offer the amenities (restaurants, night life, shopping, etc) are going to be important to you.  I agree that finding a good real estate agent will benefit you in deciding on an area...as well as talking with other people in the market that don't have a vested interest in making money from a sale.

I'd be happy to discuss some of the neighborhoods or any other questions you may have about Pittsburgh.  Feel free to PM me.

Gary Swank · Answer

Hi Austin, Welcome and if you ever want to talk about the real estate investing market in Pittsburgh, I am here for you. Currently I am assisting investors in smaller multi-unit transactions. Look forward to hearing from you.

Gary

Logan Drew · Answer

Shadyside and South Side are both fun.  Pricey as compared to places with slightly longer commutes... but you'll have a good quality of life in both of those spots if you are into the urban environment.  Both of those markets are great if you can find a building in there, but the competition is certainly more apparent.  You may want to start in Dormont, Crafton, Carnegie or somewhere like that if you are looking for a cheaper entry into the market on a 2-4 unit.

Let me know how it goes!  Good luck!

Logan Drew · Answer

Hi Austin!  Congrats on your new job in Pittsburgh.  My thoughts will be in agreement with @Jeremy T.'s.  I am a native of Pittsburgh 23 years there and have lived in SoCal for the last 11 years cutting my teeth in the mortgage and real estate fields.  I would say that you are in a great position to house hack a 2-4 unit in Pittsburgh.  You can most likely end up with a few buildings before you leave there if you plan your steps correctly.  Start with a 4-unit using an FHA program.  Let me know if you need guidance on what neighborhoods to look at for great cash-flow, good entry prices, and safety/ qualify of life.  I'm sure Jeremy has some good input on that as well as he is still there in the 'Burgh.

I too will be acquiring some units Pittsburgh for cash-flow within the next year to 3.  It's a great market for that sort of thing.  Worry about investing in SD when you get back so you're not complicating your move/ career move.  Pittsburgh has easy entry for investors and great potential with the right due diligence.

Good luck!

Moving soon - Investing home in San Diego or Pittsburgh later?

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