Pittsburgh Turnkey Rental Income Property

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I live in California but I'm looking for properties out of state to invest in due to the high prices in Southern California. One of the areas I'm considering is Pittsburgh.

This area is on the list of considerations for me because I think there are a lot of demographic trends that favor long-term growth. Strong economy, population growth, great talent Carnegie Mellon, technology jobs, health care industry, etc.

I'm looking for a modest cash-flow positive turnkey investment. I believe we are late in the real estate cycle and there might be a drop in housing prices (which I am ok with), and in such a scenario I would like the rental income to be able to at least cover the mortgage payments and would be ok with paying for other costs out of pocket. I should be approved for around $500K with 20% down. I'd be planning to use a property manager.

Does anyone have an agent that could send me a list of investments with their potential rental incomes so I can run the numbers and see if this is a viable idea?

Is this a viable idea?

Please let me know your thoughts! Would love to hear back.

Thanks!

[Megan Hirlehey]

Hi Brian,

Pittsburgh's market is super hot right now. If you are serious about the Pittsburgh market, I have a few suggestions:

1. Get more comfortable with the idea of a place that will require some work. Research some contractors in the area, ask for referrals from others on here and the Facebook group: Pittsburgh Real Estate Investors, etc. You will need a strong team for any out-of-state investing you do anyway, so you might as well start building it from the beginning.

2. Determine if you would be comfortable submitting sight-unseen offers over asking (you can still include contingencies but since you are financing you have to make your offer competitive in other ways, hence the "over asking" advice). If you want turn-key in a C+/B neighborhood here, being out-of-state, that is pretty much what you will have to do to get anything good right now.

3. Figure out how to get your hands on off-market deals, whether it be through networking, calling current landlords and making them offers, partnering with wholesalers/agents who have access to them, etc

4. Get really good at running the numbers quickly, like within a day of finding a listing, and make a decision. You can't "sleep on it" in this market for what it sounds like you are looking for.

I hope this helps a little, good luck!