Do you invest in these areas?

Question

Hi Guys,

Is there any Pittsburgh investors buying in Charleroi, Monessen, Monongahela, etc. What about areas in Westmoreland County like Jeannette or Latrobe?

Chris Loveland · Answer

I have a 5 unit building in Charleroi. I agree with all that is said. The building cash flows very well for me, but the tenants are difficult.

Anthony Angotti · Answer

@Taylor Kennison

I have seen people on here that have, but I second what Jerry said. Just because a house is cheap doesn't mean that it's a good investment. Unless you don't mind high maintenance properties.

The paper returns will end up looking good, but the time invested in the end probably won't be worth it. That's not to say every place in these areas will be that way though.

There is a Westmoreland County investors group that is part of the REIA. Perhaps that would be a good place to ask. They have a facebook group I believe.

Jerry Kisasonak · Answer

Out of these areas I'd say Jeannette and Latrobe are the better of the lot. Latrobe being the best of them.

We see homes in Monongahela, Donora, Charleroi, etc all the time in the 10-30K range and some are in decent condition. But in my opinion these areas are more trouble than they're worth, and I don't see much light at the end of the tunnel for them in terms of recovery. Remember, just because you can buy the house very cheap doesn't necessarily make it a good deal. There are plenty of other areas that have more signs of life where you can still find great deals. Not that these other areas will definitely see appreciation, but at least they look like they'll stay relatively vibrant/populated moving forward.

Jim K. · Answer

I'm  a new investor and am considering a 5 unit in the charleroi area.   4 of the 5 are currently rented.   It's about 1 hour from my house.   The roof will need replaced and furnace in the very near future.  The rest of the building appears to be very solid just outdated.   Any pointers, comments or advice would be greatly appreciated.  I plan to manage myself which my be a tall task.  Do you have a difficult time keeping the units rented and from what I read so far the tenants don't like to pay?

Johnathan Alesso · Answer

I own about 25 properties in the Mon Valley and based on my experience see truth in everything that was written above.  Many of the properties are extremely lucrative given the high cash flow, but some are complete nonperformers due to tenant issues and continuous repairs.  I would certainly recommend the area to investors, but with the caveat to pay close attention to the tenant pool and deferred maintenance prior to purchase.  The most difficult areas for us so far has been Clairton and Donora.  Monessen, Charleroi and North Charleroi have been solid so far.

I recommend using section 8 in this area for the reliable rent.

Jason Moskal · Answer

I have also contemplated these same areas, Especially Monongahela since it's a short drive down 43 for me. My contractor lives in Donora and my electrician lives in Mongahela so they'd be close for working on the properties. As far as bad tenants go, do any of you use a property manager that would collect 10% of the rent as a fee to help with those areas?

Jay Belcher · Answer

The Mon Valley is a little depressed, but if it's close to home, go for it. There are "better" neighborhoods, but if it's an hour drive to them, that's a real drawback in my book.

Invest so that you're not counting on appreciation. Pittsburgh area is lousy in general for appreciation, but the Mon Valley is worse.

Kenneth Soles · Answer

Taylor

I am from this area and invest in these areas.  I'll try to answer any questions you may have. Feel free to message me.

Jason V. · Answer

@Taylor Kennison, I have in the past. We ended up selling all the properties we had in the Mon Valley, because although rents were very good for the price of the home, we always seemed to have problem tenants. I'm sure most of it was our fault - not having the time to properly manage them at that point in my life. I can say I have rentals in other areas like Castle Shannon and it's been a dream compared to the Mon Valley.

Account Closed · Answer

@Taylor Kennison I can help you analyze your area if you'd like....then connect with me :)

Do you invest in these areas?

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