All Forum Posts by: Liam Tennies

Hey Diane, you can still find cashflow in Pittsburgh. Just depends on where you're buying. Typically we see the better rent:price ratios/cash flowing properties a bit outside of the city maybe within 45 minutes or so of downtown, or in the C class neighborhoods closer to the city that are a bit more management intensive.

You might be able to get a close to turnkey duplex for ballpark 80-130k if looking in the area I mentioned above. Similar condition SFH maybe in the 70-120k range. Multi's will cashflow better for you long term though.

Agree with some of the comments above that in general it's harder to find cashflow nowadays. Rates are high and are making DSCR thresholds harder to reach. Speaking from experience of working with investors in Pittsburgh though, there's still those deals out there.

Another option is you could use your cash for bigger equity plays rather than focusing primarily on cashflow right now. If you can get some chunks of equity then you'll be able to turn that into cash flowing properties down the line. Sounds like with your current situation you'll need the cashflow right off the bat though which is totally fine. Just have to work with a local investor focused agent who can point you in the right direction and will be forthcoming with you. Feel free to shoot me a message if you end up looking more into Pittsburgh, and good luck!

Hey Matt, Pittsburgh is a great city for this. Highly affordable, easy to get around, and good quality of life here. I'm on househack #2 right now and getting the 3rd next year. My colleague @Jeremy Taggart is just closed on househack #8.

Lots of good options for you to pick up a 3-4 unit househack depending on which neighborhood you're looking to live in. The higher end neighborhoods like Lawrenceville, Bloomfield, Strip District, Shadyside, and Central North Side will be hard to make work for a cash flowing househack. Some don't mind that though because they value quality of neighborhood and long term appreciation over immediate cashflow and living for free.

If you want to live for free or come close to it, and cashflow after you move out, you can look on the outskirts of those neighborhoods or a little bit outside the city maybe within 30 minutes of downtown where the rent to price ratios are much better.

Feel free to reach out any time if you have questions. We work with several clients per year that are first time house hackers such as yourself. Congrats on the move and good luck!

Have to agree with my colleague Jeremy above and recommend house hacking. I moved to Pittsburgh in 2019, saved up for a year, and bought my first duplex to househack in 2020. Been off to the races ever since. You'll want to connect with a local agent who understands buying from an investment point of view and what your goals are. You'll have to lease on that person to help educate you in terms of areas since the Pittsburgh market is very street by street and it can sometimes require some nuance. 

Shoot me a DM and I'd be happy to chat and answer any questions for you. Good luck!

Hey Bagus, sending you an DM. I'm always referring out my contacts for clients and have a few that absolute rockstars.

Curious if there's a certain part of Pittsburgh you're investing in though cause that could dictate the property management rec.

Hey Kyle, congrats on making the jump. Tons of resources locally that will help you get where you want to go.

A friend and colleague of mine runs a local RE meetup in Lawrenceville each month. Shoot me a message and I'll make sure you get added to the email list.

Best of luck!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $256,000
Cash invested: $17,264

2nd househack property. 4 unit apartment building in a good neighborhood of Pittsburgh with side by side up-down units. 2 inherited tenant and 2 vacant units that were immediately rehabbed. Will be fully repositioned by Spring '23.

What made you interested in investing in this type of deal?

Was due for my second house hack after 17 months being in my first. Liked the fact that it was a 4plex in a neighborhood I was familiar with.

How did you find this deal and how did you negotiate it?

Found by a referral from my network before it was listed. Found out what the seller was looking for price wise and offered 6% over with a 6% assist to cover closing costs, so it net even for the seller.

How did you finance this deal?

10% down portfolio loan

How did you add value to the deal?

Rehabbed vacant units and moved a new tenant in at market rents.

What was the outcome?

Currently living for free cash flowing. Will be a heavy cashflow deal once the inherited tenants' units are rehabbed and brought to market rent.

Lessons learned? Challenges?

Inherited tenants can be a pain and should be prepared for accordingly. Timeline with those units can be difficult.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Anthony Feola at Northwest Bank in Pittsburgh helped finance the deal for me.
Jeremy Taggart, a fellow agent at Deacon Hoover Real Estate Advisors, assisted in sourcing the deal.

150k definitely gives you some options in Pittsburgh. I don't have enough info here though. What is your goal with the 150k? What kind of deal are you looking for? A flip? A BRRRR? Buy and hold for cash flow?

You can find some single family homes and duplexes for under 150k that will cash flow for you. Or, if you want to do a value add deal and exit realize the equity after the rehab, you'll be able to pull something together for 150k all-in cost. Happy to comment more if you have any more details.

Hi @Brandie DeNelle, congratulations on getting started and I love your game plan. 3 properties in 5 years is totally achievable using the house hacking strategy and BRRRR's to accelerate the growth. I'm a house hacker myself, and work with a ton of investors as an agent, so I'm happy to help with anything along the way.

Being in Beaver County should serve you well. Prices on the 2-4 units are typically a bit lower and cash flow is a bit better than in Allegheny County. Usually some good returns on the BRRRR's out there too, from what I've seen. Not to mention the lower taxes as well.

If you haven't talked to a lender yet, I recommend doing so even if you're not quite ready to pull the trigger. I have some rockstar lenders I can refer to you that I work with often. I'd talk to a couple and see who can give you the best terms. Feel free to reach out and best of luck! You're gonna crush it!

Typically we, as investor agents, don't recommend going into D or C- class areas given the management headaches they come with and the amount of repairs & maintenance they require, but if you have done it before and know what you're getting into, that's the biggest thing, so go for it! 

I have to agree with my colleague @Jeremy Taggart on this. You can get the higher cash flow from those areas by looking at the better pockets of the not-so-good neighborhoods. Say you're looking at a C class neighborhood with good cash flow that is a bit rougher - look for the 1 or 2 streets within that neighborhood that are the nicest or least run down. You will get the lower prices that exist in the neighborhood but likely get better tenants & less headaches if you look for pockets like this. Pittsburgh is very street by street, so you can take advantage of that.