by Arbors Management, Inc. | Aug 9, 2019 | Investment Rental Property, Property Management Education
The Pittsburgh Housing Market
There are plenty of excellent reasons to invest in Real Estate in Pittsburgh:
- Pittsburgh is diverse
- Pittsburgh is growing and desirable
- Plenty of good school districts nearby
- Pittsburgh real estate is generally affordable
The list could go on and on!
Whether you’re local to the area or from out of state and looking for an investment property, you can find some thriving submarkets in and around Pittsburgh.
Today, we’re talking about what you should buy and where you should buy when considering a Pittsburgh investment property.
Investing in Pittsburgh: Market Strength
Housing prices are on the rise in Pittsburgh, but the buy-in that investors face is still much lower than in other east coast cities.
Pittsburgh neighborhoods have undergone a lot of revitalization in the last few years, and the economy is growing.
More people are moving into the area and unemployment is lower than the state average.
There’s a growing tech industry in the city thanks to companies like Google, Apple, Uber, and Facebook setting up shop.
The medical centers and universities are putting Pittsburgh on the map in new ways, and smart investors are taking note.
Pittsburgh Neighborhoods to Consider
When you’re looking for a Pittsburgh investment property, you’ll need to consider your investment goals and the importance of location.
When we’re talking to investors, whether they’re looking for their first rental home or an additional property to add to a growing portfolio, we always recommend neighborhoods with outstanding resident pools and the potential for long term gains.
Some of those neighborhoods we recommend are:
Pittsburgh Neighborhoods to Avoid
As your property management partners, we care about the investment decisions that you make and are happy to be involved from the beginning.
If you’re considering purchasing a home in Pittsburgh, reach out to us to get our insights on the neighborhood – we’ll give you our honest feedback.
Types of Homes to Buy
When you’re looking for a great investment property in Pittsburgh, remember that your goal is to get it onto the market as soon as possible – an unoccupied rental home is an expensive rental home.
So, look for properties that are in good shape.
Cosmetic upgrades often just take a few days, and it’s fine to buy a home that needs new paint or better flooring.
Don’t bother with properties that will require heavy renovations and rehab work; you’ll lose too much money on vacancy costs, and you may not recoup what you spend bringing it up to habitability standards.
40+ Years of Experience in the Pittsburgh Housing Market
With over 40 years of experience in the Pittsburgh housing market, we’ve learned a thing or two – we’d be more than happy to discuss your options as a potential or current owner in Western Pennsylvania!
For more information or a free consultation, please contact us at Arbors Management.
by Arbors Management, Inc. | Jul 10, 2019 | Blog, Investment Rental Property, Property Management Education
What to Look for In a Property Management Company in Pittsburgh, PA
Property managers often get a bad rap. Why?
Because until recently, the work of a property manager wasn’t taken seriously.
The industry was undeveloped and there wasn’t a lot of training and technology, which led to distrust and bad practices.
But, things are changing.
There’s been a lot of innovation and investment in the property management field, and the best property managers today are doing a lot more than collecting rent and placing residents. We’re managing assets.
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by Arbors Management, Inc. | Jun 10, 2019 | Blog, Investment Rental Property, Property Management Education
So Which Is Best: Renting Out or Selling My Home?
We frequently talk to homeowners in Pittsburgh who are moving into a different home or leaving the area for work or other responsibilities who aren’t sure what to do with their property.
Deciding whether you want to sell or rent out your property is a very personal decision and there’s no single answer.
Your decision will depend on a number of factors – contrary to what you might believe, though, not all of these factors involve finances!
Today, we’re going to share some of the points we talk through with owners who are deciding between renting out or selling their home.
#1: Consider Short and Long Term Financial Goals and Needs
If you need some immediate cash fast, it’s better to sell your property.
Renting out a home can build wealth and earn you incredible profits, but it’s not going to happen right away.
You need to settle into a long term investment strategy in order to make real money.
So, if you’re looking for money to use as a down payment on a new home, you want to invest elsewhere, put a child through college, etc.; selling is better for you right now.
However, when you don’t have an immediate need for the equity that’s in your property, it might be better for your financial future to rent out the home.
You’ll earn some regular cash flow and hold onto your asset while it continues to appreciate in value.
Long term investors will earn more by renting out the property.
#2: Think About the Value of a Great Tenant and a Maintained Home
As a rental property, your home has the potential to earn your regular income.
A property with positive cash flow has higher earnings than expenses.
For example:
if you rent out your home for $1,500/month, your mortgage payment is $800 per month, and your taxes, insurance, and other expenses add up to $300 a month, you’re earning a pretty healthy cash flow.
$1,500 / month Your rental rate
-$800 / month Mortgage payment
-$300 / month Taxes, insurance, other expenses
$400 / month Cash flow
Even if you’re breaking even with your income and expenses, remember that there are still several benefits to renting out your property:
- Your resident is paying down your mortgage
- Your asset is increasing in value
- Your resident is taking care of the property
If you’re preserving the condition of your property and keeping it occupied with great residents who pay rent on time and follow the terms of your lease, a rental will provide income and ROI for as long as you own it.
#3: Consider Renting the Property for Tax Benefits
Don’t forget the tax benefits of renting out a property!
When you sell a home, you may have capital gains taxes to absorb.
However, when you rent out your property, you can protect yourself from a lot of tax liability.
Depreciation is a deduction you can take, and you can also deduct the costs of maintaining your home.
Additionally, professional services like property management are tax-deductible.
#4: Don’t Forget to Take Emotions into Account
When it comes to a home, there are also some emotional elements involved.
If you can’t bear the thought of someone else living in your home while you’re still attached to it, it may be better to sell and move on.
If you might return to the Pittsburgh area at some point in the future, keep it so you have a place to live when you come back.
We’re Here to Help
We’d be happy to talk through these issues with you, and to figure out the solution that will make the most sense for your bottom line and your peace of mind.
Contact us at Arbors Management today!
