Advice on buying an investment property. Is the rental market strong? (Pittsburgh: 2013, renter)

[slavicamerican]

Hi everyone,

I'm toying with the idea of buying a property in Pittsburgh as a long-term investment and place for me to live in someday. Not actually living in Pittsburgh right now, I'd really appreciate some advice from those of you who are.

I'm thinking of looking for a small home in the $175,000 range, fixing it up and renting it out. Ultimately, I want it to be in a neighborhood that is walkable to a commercial area, hasn't already largely gentrified and is somewhere between the Point and East Liberty, more or less. In other words, I don't want to be in Carnegie or someplace like that.

I compared Lawrenceville, Polish Hill, Larimer, Mexican War Streets, South Side, Millvale, and a few others. Ultimately, I'm really intrigued by Garfield due to its central location, commercial strip along Penn Avenue and status as an "up and coming" neighborhood with room for growth.

Now I'm wondering how strong the rental market is in Pittsburgh. Also, do you think a student or Professional-type with good credit and a stable job would want to live in Garfield or is it considered too sketchy?

BTW, my goal isn't to make a profit off a renter but to simply have the rental unit pay for itself (for the most part) and not be a headache.

Any advice?

[sky329]

Garfield still hasn't made it besides that main location on Penn Ave and maybe one street back lol... In 5 years maybe fine but now its like a carrick

[guy2073]

You are looking for the wrong thing if you don't want a headache and you just want it to pay for itself. Maybe invest your money into something else until you are ready to buy your pgh home.

[gladhands]

I was looking into buying rental properties in Troy Hill, but our realtor really, really, really believes that Garfield is set to explode. I'm inclined to agree with her.

[slavicamerican]

Originally Posted by gladhands

I was looking into buying rental properties in Troy Hill, but our realtor really, really, really believes that Garfield is set to explode. I'm inclined to agree with her.

I'm not sure it will explode, but I think it will do well in the long run. If I read a webpage correctly, it seems like there is a substantial amount of public housing in the area which can be a deterrent.

[gladhands]

Originally Posted by slavicamerican

I'm not sure it will explode, but I think it will do well in the long run. If I read a webpage correctly, it seems like there is a substantial amount of public housing in the area which can be a deterrent.

I've watched neighborhoods gentrify around public housing and other cities, I don't see why Pittsburgh would be any different. And Garfield isn't exactly a hotbed of violent crime. Garfield is almost certainly the next Lawrenceville. It's already happening.

[eschaton]

Originally Posted by slavicamerican

I'm not sure it will explode, but I think it will do well in the long run. If I read a webpage correctly, it seems like there is a substantial amount of public housing in the area which can be a deterrent.

No public housing per se any longer. There's a privately-run mixed-income community at the top of the hill in Garfield. And there are (mostly horribly designed) infill houses scattered throughout Garfield which have been built due to the efforts of the Bloomfield-Garfield corporation, which are either rented to low-income families or sold to moderate-income homeowners. None of this is run by the Housing Authority however.

[slavicamerican]

Oh, okay. Thanks. That's good to know.

BTW, I didn't make it to Troy Hill. Is it an easy walk from there to the Strip?

I actually liked the look of Millvale but it didn't seem to be gentrifying very quickly, and I wouldn't want to try to walk through the tangle of roadways to get to the bridge.

[tyovan4]

Originally Posted by slavicamerican

BTW, I didn't make it to Troy Hill. Is it an easy walk from there to the Strip?

Close, yes. Just cross the 31st St Bridge.

Easy no - look at Rialto Street in Street View. Or check out this picture: http://www.post-gazette.com/image/20...lto-Street.jpg

[jea6321]

for the OP, if you are going to be an absentee owner, buying a turnkey property on the higher end will most likely be the least headache. you will want a decent property manager ( pm me for ones to avoid) to take care of it. a 2-4 unit building would probably be the best bet from a financial outlook. The rental market is pretty strong in most good neighborhoods. there is an abundance of ultra high end stuff coming on the market or recently came on. The mid range stuff that is nice and updated, but not new and ultra chic (i.e. 1100-1350 range for 2 bedroom units) has plenty of demand.

as for garfield being about to "explode", its been in a 7 year slow steady climb out of being one of the worst neighborhoods in the city. Its now mostly stable, gritty, but not totally unsafe. there is no real catalyst for it to all of a sudden pop to super popular though. Lawrenceville has LOTS of room to continue with housing flips and renos, east liberty and southern highland park still have plenty of room for growth as well. the housing prices are already reflective of an improving neighborhood, so its not like you can go buy a livable house for next to free today, and see 300-400% appreciation over the next 5-10 years. I see it continuing to improve and increase in value ( just like most city neighborhoods) but it exploding in popularity or value just does not seem realistic.