Investing in Gentrifying/ Up and Coming Areas that Cash Flow

[Joseph M.]

I was wondering any investors on here have a strategy of investing in gentrifying or up and coming areas that cash flow. It seems this could be the best of both worlds as both rents and property values tend to rise in gentrifying areas. I know there are a lot of people that just focus on areas that cash flow and don't expect any appreciation...and then there are those that don't care too much about cash flow but are betting on appreciation in the future.

I would think this strategy would apply most to those that invest in different areas, but it could apply to those that invest in their local area.

The reason I am thinking about this is I've been doing a lot of research on the Pittsburgh area and it seems like there are many neighborhoods that have been recently gentrified and ones that seem to be ready for gentrification or up and coming. I'll be visiting soon and looking forward to it.

One potential problem I see is that there isn't much inventory on the market. It looks like these areas didn't experience many foreclosures ,and it sounds like the people that own in these areas are older/retired and dont plan to move. In this case it seems that doing direct mail marketing and trying to find sellers off the MLS might be more effective?

Any thoughts on this issue or in the Pittsburgh area in general?

Also anybody have any other suggestions of areas that currently cash flow, but are gentrifying?