Where would you buy a fixer-upper now? (Pittsburgh, Allentown: mortgage, credit score)

[eschaton]

Although it's probably fantasy, I've been thinking about buying a second property and fixing it up lately. Partially because I'm getting house fever, but I can't move for a few years. We also have enough saved up ($35,000) that we could theoretically pull such a payment.

We all know the market in Pittsburgh proper has appreciated pretty dramatically over the last decade, outside of the neighborhoods still declining rapidly in terms of safety and desirability. If you were going to buy a cheap house and restore it, where would you look?

[Retiredcoach]

Buying any property for investment purposes is typically going to require for you to minimally have a down payment of 25-30%, an extraordinary credit score, and a willingness to pay above-market interest rates/closing costs. Even if you meet the above criteria, securing a loan is still at the discretion of the banks, and unless things have changed very recently, most local banks have not "been in the lending mood" for second homes.

This being said, owner financing would be most beneficial if the property is in a desirable area. Even so, finding a "fixer-upper" in a desirable area with special financing may be very challenging to find. What are you looking for, and what are you looking to spend?

[jimmyev]

Originally Posted by eschaton

Although it's probably fantasy, I've been thinking about buying a second property and fixing it up lately. Partially because I'm getting house fever, but I can't move for a few years. We also have enough saved up ($35,000) that we could theoretically pull such a payment.

We all know the market in Pittsburgh proper has appreciated pretty dramatically over the last decade, outside of the neighborhoods still declining rapidly in terms of safety and desirability. If you were going to buy a cheap house and restore it, where would you look?

According to county appraisers, the market value of properties in Duquesne, Homewood, Wilkinsburg, Braddock, Rankin and Swissvale is 3-4 times the price you can purchase them for right now. For example, with your $35K you can buy 5 properties at $7K a piece, turn right around and sell each for $45-$50K. No where else in the country can you get a return like this! Your $35K investment is now worth $225K to $250K, an annual return of 543%. Using Allegheny County math, in a few years you could be a billionaire.

[Love2Golf09]

Why get a mortgage when you can get a decent house for $35k in nice neighborhoods like Munhall, Overbrook, West View, Brookline, and Beechview. You can even find some homes in Brentwood and Mt. Washington, close to Warrington Ave. You have a ton of options with that amount of money. Also, be aware that most banks would put rules on your mortgage that you cannot pay it back within a year in order to avoid flipping.

[PreservationPioneer]

That'll be the day when a rehabbed property in Duquesne sells for $50k. That was a good one! The county appraisers are lining the county's pockets, not assessing these properties at market value.

[PreservationPioneer]

Originally Posted by Love2Golf09

Why get a mortgage when you can get a decent house for $35k in nice neighborhoods like Munhall, Overbrook, West View, Brookline, and Beechview. You can even find some homes in Brentwood and Mt. Washington, close to Warrington Ave. You have a ton of options with that amount of money.

This. Mortgages on fixer-uppers in transitional neighborhoods are still unnecessary in Pittsburgh, if you have 35k in the bank.

Where would I buy? Deutschtown, Manchester, Stanton Heights, Troy Hill, Lincoln Place, Beechview, Mt. Washington, Brighton Heights, Bellevue, Millvale, Etna, Sharpsburg, East Liberty (not Larimer), Turtle Creek, East Pittsburgh, Wilmerding, Brentwood, Dormont, Brookline, Overbrook, West Mifflin, perhaps even Allentown or the West End if you're a bit of an urban pioneer. Stowe Township has been a good investment for me so far.

[Evergrey]

Originally Posted by alleghenyangel

This. Mortgages on fixer-uppers in transitional neighborhoods are still unnecessary in Pittsburgh, if you have 35k in the bank.

Where would I buy? Deutschtown, Manchester, Stanton Heights, Troy Hill, Lincoln Place, Beechview, Mt. Washington, Brighton Heights, Bellevue, Millvale, Etna, Sharpsburg, East Liberty (not Larimer), Turtle Creek, East Pittsburgh, Wilmerding, Brentwood, Dormont, Brookline, Overbrook, West Mifflin, perhaps even Allentown or the West End if you're a bit of an urban pioneer. Stowe Township has been a good investment for me so far.

What about Esplen?

[Goinback2011]

I think just about any area near Downtown, especially along the river, is going to skyrocket over the next decade. In particular, anything in Troy Hill, Millvale, Sharpsburg or Etna will be a good buy. The land has the value. It doesn't matter what is sitting on top of it.

[ferraris]

It's probably not a flip it and sell it 3 months later neighborhood, but I'm still a little high on Hazelwood. It has all the bones of becoming a desirable neighborhood. It's a stone's throw from Oakland, the Southside, and the Waterfront and is geographically positioned to join the Lawrenceville-Bloomfield-Shadyside-Squirrel Hill-Greenfield band of neighborhoods in desirability. The LTV site could make a huge impact if it's done properly (and it sounds like it will be), and they're already doing a little bit of pre-construction work on it (using fill-in dirt from the north shore connector), so development there could be a reality in just 2 or 3 years even.

[PreservationPioneer]

Originally Posted by Evergrey

What about Esplen?

Sure, why not? Prices are rock bottom. They might not go up, but they can't go down.