E57: Pittsburgh: The New Hot Market for Real Estate Investors with Gabe Gordon

Real estate is all about location. And picking the best location for a real estate investment can be a challenge. With so many factors and locations, you may feel overwhelmed — or worse, you might end up making a mistake that can cost you, and not just financially. If you’re having trouble deciding on a place to invest, you may want to consider Pittsburgh!

In this episode of Real Estate Hackers, we discuss the Pittsburgh real estate market with Gabe Gordon. He shares his thoughts on the flourishing economy of Pittsburgh and why it’s the best place to invest in right now.

Here are some power takeaways from today’s conversation:

Tech, health, and education are flourishing in Pittsburgh.
More people are wanting to live in the suburbs.
Population decline gives way to increased value.
Most investors tend to buy in cash.
Get to know your investors.

Episode Highlights:

[03:58] Why You Should Invest in Pittsburgh

Pittsburgh is a leader in technology, higher education, and healthcare. It’s also considered one of the most livable cities, making it a good place to invest in.

The quality of its higher education institutions and housing affordability are two factors that are fueling Pittsburgh’s growth. Moreover, great effort is put into attracting tech companies.

[13:05] Pittsburgh During the Pandemic

After COVID hit, the suburbs of Pittsburgh saw its share of hardship: many new apartment buildings were stalled out; people started trickling out to the suburbs to get more space; rental rates were also lower before the pandemic. On the other hand, single-family homeowners benefited from the shift to the suburbs.

Currently, people are starting to make a return to multi-family homes, but the suburbs are still seeing a lot of profit from people moving to Pittsburgh.

[16:18] Population and Prices

The population decline is due to the older generation passing away. Thus, a population increase is to be expected in the future. Though it may sound morbid, population decline can add value to properties. Listen to the full episode to find out what price points you can expect!

[22:31] Handling Investors and Investments

Get to know your investor. Learn their goals, risk tolerance, and experiences. Right now, cash is king and investors tend to buy with cash.

Pittsburgh is incredibly resilient and recession-proof. There’s also increased appreciation that beats inflation, and cash flow that produces greater returns. With its stable and growing health, tech, and education sectors, Pittsburgh is an ideal place in which to invest.

Notable quotes from the Episode:

[11:05] “There are some pockets that have not been developed yet. But Pittsburgh is just a growing metropolis of activity all over.”

[23:41] “Everybody’s a little bit different and wants something a little bit different.”

[25:35] “Now, even as interest rates are starting to creep up or have been creeping up, I’m actually starting to see a preference towards cash because people want to get houses purchased, and then they’re going to know what to do with it on the back end.”

Resources Mentioned:

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