Best B/C areas for cashflow or BRRR in Pittsburgh?

[Kadia Lawrence]

Hi all,

I am a new investor in Pittsburgh from out of state (closing on a triplex for cashflow shortly). I'm looking to get a sense of the latest thoughts on 1) the best B or C (even C-) areas for cashflow, 2) thoughts on up and coming areas that still have cashflow opportunities and future appreciation prospects and 3) opportunities for BRRRR. I am narrowing down my list and trying to categorize neighbords into B or C and also up and coming. Have been researching areas like Homestead, Munhall, Swissvale, Braddock, Rankin, some on north side like Bellevue, Avalon, also Millvale, Etna or in the other direction, Penn Hills. Also curious about Wilkinsburg and how Lincoln-Lemington Belmar is viewed relative to areas closer to East Liberty. I really like areas such as Dormont, Mount Washington but wonder if that would be catching lightening in a bottle. It's early so am open to thoughts...

[Jeremy Taggart]

@Kadia Lawrence I would say the most "sure bet" areas right now that have the most upside are the areas that directly border the East End neighborhoods of the city. Spillover effect is starting to happen albeit it still pretty early. Most of the East End neighborhoods closest to the hospitals and universities won't cash flow as long term rentals anymore and are starting to become unaffordable for owner occupants as well so it's spreading outwards. Same with the neighborhoods directly bordering downtown on the North and South. 

I think the areas that aren't currently high crime or too run down will stand the best chance because they will attract owner occupants which drive appreciation. So for example right across the river like Troy Hill, Millvale, Etna, Sharpsburg. Or just across Interstate 376 on the other side like Greenfield and better parts of Homestead/Munhall, Swissvale, and Wilkinsburg. 

The high crime/more run down areas are more of a wild card for example Homewood, Lincoln/Larimer, and the not so nice parts of Wilkinsurg or Swissvale. Potential for sure long term but riskier getting into right now and will likely have to deal with management headaches for the next 5-10 years until/if they would start to turn.  

I also like neighborhoods along route 65 like Brighton Heights, Bellevue, and Avalon. Along with southern neighborhoods like Beechview and Brookline. Carrick has started hitting it's stride in the south as well. I don't think those areas will see massive appreciation but do have good upside going forward as they've already start gaining pretty good traction as a result of the top tier neighborhoods closer to the city on the North and South getting expensive at this point. 

West is still the most affordable section of the city that I think will benefit the most if Pittsburgh were to go thru mass gentrification but that's more of a toss up right now IMO. Most everything stems from the East.

I am also a fan of areas close to either Cranberry Township or near the Airport/Robinson Towship. South Fayette/Bridgeville area as well along interstate 79. Tons of development going on there so it's also starting to benefit residential real estate located near there as well outside the city.