Considering investing in high cash on cash return properties? Then you should consider Pittsburgh as a top choice.
Ever wonder why Pittsburgh is called “The Steel City”? It’s a mass steel producer, in addition to producing natural gas, oil, and glass. Other industries that contribute to Pittsburgh’s strong job market include film, education, engineering, robotics, and healthcare. Pittsburgh sticks out because its economy was able to resist the effects of the recession.
There’s more to Pittsburgh than just a strong economy and a strong job market. Lively culture, low crime rate, and affordability are all some of the reasons Pittsburgh was named the most livable city in the country seven times since 2000 by multiple sources.
This is great for real estate investors buying investment properties in Pittsburgh. The homes are affordable, tenants have jobs and can pay rent, and there are students all over the city. Pittsburgh is one of the best college towns for investing. The city alone has over 60 colleges and universities.
Don’t forget Pittsburgh is a center for sports too: it’s home to the Pittsburgh Steelers and the Pittsburgh Penguins. These sports teams bring in a lot of tourists during a game, just one reason an Airbnb Pittsburgh investment property is also a good real estate investment strategy. The biggest regulation in place is the 7% hotel tax, but not many other legal or financial issues have occurred for Airbnb Pittsburgh.
Pittsburgh Real Estate Investing – Top Performing Areas and Neighborhoods
When it comes to investing in a big city with a lot of variety in the types of industries and tourism that it attracts, you will also find a great variety of performances based on the areas that you’re looking at.
Based on Mashvisor’s data, these are some of the best-performing neighborhoods and areas within Pittsburgh that have the highest cash on cash return values.
As you will notice, the performance of both traditional and Airbnb rental properties in Pittsburgh can vary significantly from one area to another. And while some neighborhoods show much higher potential for Airbnb rental properties, other neighborhoods show far more superior long-term or traditional rental properties.
So, without further ado, here are the top 4 performing neighborhoods based on their cash on cash return stats in the great city of Pittsburgh:
Scott Twp – SAL
This neighborhood shows very great potential and is a particularly good choice for an investment property if you’re still not certain whether you want to rent out traditionally or through Airbnb.
This is because, as the data will indicate, both rental strategies are performing relatively well.
Although traditional rental properties show a higher potential, the cash on cash return for Airbnb rentals is also at a very good value and would generate a good amount of returns if you choose to invest in it.
Here are the main stats for Scott Twp:
Median Property Price: $175,950
Cash on Cash Return: 8.10% Traditional/4.62% Airbnb
Rental Income: $1,840 Traditional/$1,366 Airbnb
With a 38% Airbnb occupancy rate at the time this article was written, we personally believe that investing in traditional rental properties in the area might be the favorable choice for a guaranteed source of rental income and a successful real estate investment.
Related: 4 Don’ts for Airbnb Occupancy Rates
Swissvale
Both Scott Twp and Swissvale have one thing in common: their relatively low property prices.
Swissvale, however, has a median property price that is $50,000 lower than the average in Scott Twp, making it a more favorable choice when it comes to property prices.
On the other hand, Swissvale seems to be performing slightly better when it comes to Airbnb rental properties, and it might be the optimal rental strategy for investing in the neighborhood.
Here are the main stats for Swissvale:
Median Property Price: $127,500
Cash on Cash Return: 6.69% Traditional/9.14% Airbnb
Rental Income: $1,020 Traditional/$1,121 Airbnb
Despite the relatively low average Airbnb occupancy rate, which stands at 27% at the moment this article was written, the area’s performance for Airbnb rental properties seems to be the right choice for investment, which is probably due to the seasonality of the area and its Airbnb attraction during certain times of the year, which makes it worth the while.
Note: Click here to start searching for investment properties in Pittsburgh based on their cash on cash return values right away!
South Fayette
This is an area in Pittsburgh that seems to be doing extraordinary well when it comes to Airbnb rental properties.
As you will notice by the data, Airbnb rental properties seem to be generating some of the highest returns, which means that investing in this area might lead to a lower risk due to the almost guaranteed rate of return on investment.
Here are the main stats for South Fayette:
Median Property Price: $239,900
Cash on Cash Return: 3.78% Traditional/15.21% Airbnb
Rental Income: $1,210Traditional/$2,775 Airbnb
Similar to Swissvale, despite having very high return on investment from Airbnb rental properties, South Fayette also has a relatively low Airbnb occupancy rate, which stands at 23%.
However, this is most probably due to the time of the year, as most areas that perform well based on tourism lose a high percentage of their occupancy rate during the winter season, and achieve their highest points during the summer.
Note: Looking to find the best performing cash on cash return properties out there? Click here and start your search now!
Perry Hilltop
This is another area which performs moderately well for Airbnb properties, but that is also more consistent when it comes to Airbnb occupancy rates.
With moderate median property prices, Perry Hilltop looks like a solid and consistent neighborhood to invest in, especially if you’re looking for your next Airbnb rental property.
Here are the main stats for Perry Hilltop:
Median Property Price: $239,450
Cash on Cash Return: 1.73% Traditional/5.67% Airbnb
Rental Income: $837 Traditional/$1,385 Airbnb
Despite the Airbnb cash on cash return in Perry Hilltop being slightly lower than the other areas that we’ve mentioned, the strong quality of the neighborhood comes from its consistent Airbnb occupancy rates, which are not as heavily affected by the turning of the seasons.
Perry Hilltop’s average Airbnb occupancy rate is 34%.
Related: 7 Tips to Achieve a High Airbnb Occupancy Rate
Bottom Line
Pittsburgh has always been a great city for real estate investing, and rental properties in the area have always performed very well, which is why Pittsburgh is considered a very solid choice when it comes to finding investment properties.
Are you ready to start searching based on cash on cash return values? Go to Mashvisor and start searching for investment properties in Pittsburgh or any other city of your choice! With Mashvisor, we turn 3 months of research into 15 minutes, and we do it more efficiently than anyone else out there.