Just Starting Out, Looking into Pittsburgh, PA

[Algi Skukauskas]

Good Morning all,

I am just starting out and looking into buying a single family house in Pittsburgh, PA to rent out for a steady monthly cash flow. I just wanted to check-in and see if anybody has any experience in the area and could share with me on what to expect, types of neighborhoods should be avoided and etc. I currently have around $80k and planning on buying all cash and extremely handy looking for a property that me and my dad could rehab and rent it out. Also, should i go all cash or should i get a mortgage (we are closing on the house on long island and not sure if this will even be an option). I live on Long Island, New York, so i would most likely have to get a property manager to manage my rental on my behalf. Any suggestions on who i could use? Any tips and suggestions are weclome and are greatly appreciated as this is a scary thing i want to do... again thankyou all for looking at this post and let me mnow if you have any questions. - Algi

[Jim Blackburn]

@Algi Skukauskas

As a FTHB, I highly recommend using your 80k cash to take control and ownership of 4 units with just 3.5% down. You only get 1 shot to take advantage of this and after you own your first primary residence (assuming you bought single family), you will then need 25% down to purchase a 4 unit primary because then you will be underwritten as an Investor.

For example, when it comes to Pittsburgh mortgage lending, the Allegheny county loan limit for a 4 unit is 605,525 means you could purchase a 4 unit property for 627k with just 3.5% down and get the seller to cover all of your closing costs and escrows.  

Read my post on this thread.

https://www.biggerpockets.com/forums/311/topics/491821-help-with-purchasing-first-multi-family-home