Are you thinking of buying an investment property in Pittsburgh, PA? Investing in rental properties can open up future possibilities. You gain access to a passive income every month and a chance to broaden your wealth over time.
Pittsburgh is attractive to investors as it has always been known for its steady growth. Unlike other locations where the market moves up and down, Pittsburgh is more reliable. The best features of Pittsburgh, PA are the amenities it offers to its residents such as a variety of shopping districts, fantastic dining spots, and abundant tranquil nature.
As a new investor, your minimal experience can make self-manage difficult but studying these tips will allow you to maximize your real estate investments potential. The great thing about owning rental homes is the positive impact it can contribute to your finances. Still, this requires dedicated research and allocating time to ensure that you do it right.
In this article, we here at DeSantis Property Management will run you through the basics of purchasing an investment property in Pittsburgh. You can use our recommendations and take advantage of the promising outcomes that stem from buying a rental property.
What Is the Pittsburgh Real Estate Market Like?
The real estate market in Pittsburgh, PA has seen a remarkable increase in interest as people are opting to live in spacious areas. When one has the freedom to chose where to live, they have more opportunities to stay in cities with a reasonable cost of living.
Over the last year, Pittsburgh’s home values have risen over the previous five years. Homes are selling above the asking price due to stronger demand.
Investors have plenty of affordable options depending on the neighborhood they choose. What’s more, there are plenty of styles of homes available including single-family homes and apartments. This means real estate investors will be able to pick a property based on their target demographics needs.
Given that many people are moving to the area for work, school, or an affordable cost of living, rental homes are vital to serve different income sectors. This means rental property investors can multiply their income and grow their investment portfolios.
Top Tips for Real Estate Investments in Pittsburgh
Hunt for Properties Suited to Your Price Range
If you want to save time and focus your energy on finding the right rental in Pittsburgh, you begin by quantifying your budget. Start by asking yourself:
- How much are you willing to pay for a property?
- What kind of property that you desire?
- What kind of property is your target tenant demographic likely to be looking for?
By being aware of the financial figure you’re working with, you’re likely to be more efficient in finding the property you want. You can eliminate unnecessary evaluation of properties that are beyond your budget.
When deciding on the right price level, always include the HOA and closing costs, and associated taxes. Make sure that these are factored into your total budget before settling on a property.
Be on the Lookout for High-Rent Neighborhoods
All investors are looking to grow their wealth and generate passive income. If your goal is to gain a quick ROI then you need to find lucrative areas. Research where the neighborhoods are with the highest rental payment revenues relative to the purchasing price.
Have the foresight to include the renovation and upgrade charges when looking at the initial rental expenses versus the income to be made. Once upgrades have been completed and tenants have been secured you can enjoy a steady monthly income.
Pay Attention to the Numbers
Before placing your signature on any sales agreement, it’s best to play with the numbers. Run several scenarios. Check the projected earnings for each situational analysis of your Pittsburgh property investment.
It’s recommended to base your calculations on modest figures to minimize future discouragement. If the figures you use are low, to begin with, but your earnings grow beyond it, you’ll be happy to see the additional income. However, if you over-estimate your initial earnings or underestimate costs you’ll face losses and added stress.
Zoom in on the Right Neighborhood
Some neighborhoods are more attractive and renters will pay more to live there. It’s vital to know the current market performance. Review the earnings of similar rental properties over the past months.
Look for progress markers such as new infrastructure being built, public amenities, and property expansion projects that can provide future growth.
Appreciate the Advantages Offered by Professional Property Management Services
Sometimes new investors can be overly optimistic with little idea of the heavy work and juggling of responsibilities that come with being a landlord. Managing more than a single rental can become overly time-consuming.
Landlord-tenant laws in Pittsburgh dictate that rental property owners create a habitable space for renters. This entails being a responsive landlord when it comes to maintenance requests, fixing property damages, resolving emergencies, and dealing with conflicts among neighbors.
If you find these tasks overwhelming, hiring a property management company could be a great alternative. As your professional representative, a proven company will work to fulfill all the property management work while putting your best interests first.
In a Nutshell: Real Estate Investing Tips in Pittsburgh
As an investor, there are specific things to focus on such as your allocated budget, choosing high-rent neighborhoods, and playing with the numbers. You also need to determine the right neighborhood and hire the best property management company that always has your best interest at heart.
If you would like help managing your rentals contact the experts at DeSantis Property Management today!