Starting Rental Investing Pittsburgh

[Andrew J Betzold]

Does anyone know good regions for cash flow in the Pittsburgh area?

Looking for something either in the South Hills or in the city.

Planning to live there for a year or two and then rent it out.

Thoughts? 

Thank you in advanced,
Andrew

[Anthony Angotti]

Originally posted by @Andrew J Betzold:

Thanks Anthony. I am looking for at least the 1 % rule, 50% expenses. I am finding it hard to meet. What are your thoughts on the South Side, either flats or slopes? I like Dormont and the surrounding areas as well. Would I be better avoiding the MLS?

Is buying usually better than renting even if I do not make much of a gain?

If you are just looking for the 1% rule then Flats would be good. I live in Dormont and have over 50 units in Dormont and it's great, but getting expensive. As a new investor avoiding the MLS will come with some difficulties unless you are self sourcing, and even then it can be challenging.

Number 1: When you are new you don't understand the process which can make it difficult to navigate. 

Number 2: If you buy from a wholesaler you typically don't have inspection contingencies and your deposit is often nonrefundable. 

Number 3: Off market is likely going to need to be a cash, or like cash, purchase. The caveat being if you are souring leads yourself and can find someone that will seller finance to you, which though you hear a lot about on the internet isn't as common in practice in the B class and above 2-4 multifamily type areas.

Some other reasons buy off market can be challenging for a beginner. 

Buying is a good decision vs renting anyway because you are building equity. If you house hack a 2-4 unit it's the best decision to get started in my opinion because the numbers don't need to be as good for it to still be a worthwhile investment.