Looking for the right neighborhood

[Grace Green]

Hi everybody,

I'm not native to Pittsburgh and not very familiar with the different areas. So, I'm driving around potential neighborhoods, looking for my first house hack, but it's a little difficult with all the properties mixed together. Pockets of A houses across the street from D neighborhoods and so on. Maybe you can help me find what I'm looking for.

I'd like to rent to young professionals like me and I'd like to live on a safe and quiet street with trees, close to a nice park. I really like some of the neighborhoods around Highland Park and Morningside. Regeant Square and Shadyside are also nice. Are there other places I should look at too?

I'm,also not sure how well these neighborhoods will cashflow, based just on the asking prices and the rents I am seeing. Are these areas any of you rent in or know about?

[Jeremy Taggart]

@Grace Green Pittsburgh being so street by street can be both tricky to navigate and also provide lots of opportunity at the same time. I myself have bought in areas that are considered lower income but by buying in the nicer little pockets of those areas and making nice updates to the units, have attracted great tenants to them paying rents that you would see in higher end areas. The key is making sure the street is nice and not buying in an area where the tenants might feel worried about safety. Grittiness and scared for your life are two different things. 

The basic premise I follow is if I am willing to live there, then a lot of others will be too. As you get into the higher class areas, you typically will be at a break even at best cash flow wise, but the loan paydown and appreciation make up for it in my opinion when utilizing the FHA. On the higher priced stuff the loan paydown and appreciation will trump the cash flow you could get on the lower priced properties. So while it isn't necessarily money in your pocket right now, you are better off from a net worth perspective. So I wouldn't focus solely on cash flow specifically when looking to house hack with an FHA loan. Mainly because of it's ability to allow you to control a high priced asset you otherwise wouldn't be able to afford. Then focus on the cash flow using other loan types. On the other hand, if you are looking to get out of your job or need the money in your pocket today, then you may be better off looking at more cash flow friendly neighborhoods. It really depends on your personal goals and current situation.