buying rental properties in Pennsylvania
Hi all I am looking to buy My first property for rent. I am new to real estate. I Live in jersey and the Prices seem to not be going down here and there is little to no inventory So I started to look at Pennsylvania. Pennsylvania specifically the Scranton area seems to have more options and the prices are better. looking to buy a multifamily for rent or even a flip depending on the numbers. Does anyone have any experiences with Pennsylvania? is it worth it? does anyone know about rental properties in that area? any advice on the matter would be great. open to any suggestions.
I am a native to the area.
Scranton has many hoops to jump as an investor - esp. an out of the area investor.
One is you'd have to hire a property manager if you do not live in the city of Scranton or within 20 miles of the city.
Real estate taxes are high -that plus the current interest rate and ask prices makes cash flow an issue.
You can find "deals" but please do your due diligence.
Here is an example of a potential deal I am evaluating in the hill section of the city: 20 y/o, 2000 sq ft. 3b/3bath TH - Needs paint, new carpeting, and general wear and tear repairs after a 4 year tenant. Ask price off market: $250K, No HOA, rents approx: $1900-2100/month, RE taxes approx : 7400/year, Property insurance : $1200/year, Misc fees trash,rent registration etc : $400 / year
Evaluate this and let me know your thoughts.
Is this just a single family? based on what I looked at with the calculator the mortgage is around $2400 monthly not including extra fees. if rent is around 2000 a month you'd definitely be under. I mean maybe if its fixed up it could add some value but it seems to be negative. but My math could be wrong I'm still new to this haha. what would you do in this situation?
Quote from @Dan Marriggi:Is this just a single family? based on what I looked at with the calculator the mortgage is around $2400 monthly not including extra fees. if rent is around 2000 a month you'd definitely be under. I mean maybe if its fixed up it could add some value but it seems to be negative. but My math could be wrong I'm still new to this haha. what would you do in this situation?
Welcome Brandon - I have properties here in the wyoming valley.
I am a native to the area.
Scranton has many hoops to jump as an investor - esp. an out of the area investor.
One is you'd have to hire a property manager if you do not live in the city of Scranton or within 20 miles of the city.
Real estate taxes are high -that plus the current interest rate and ask prices makes cash flow an issue.
You can find "deals" but please do your due diligence.
Here is an example of a potential deal I am evaluating in the hill section of the city: 20 y/o, 2000 sq ft. 3b/3bath TH - Needs paint, new carpeting, and general wear and tear repairs after a 4 year tenant. Ask price off market: $250K, No HOA, rents approx: $1900-2100/month, RE taxes approx : 7400/year, Property insurance : $1200/year, Misc fees trash,rent registration etc : $400 / year
Evaluate this and let me know your thoughts.
Quote from @Dan Marriggi:
Welcome Brandon - I have properties here in the wyoming valley.
I am a native to the area.
Scranton has many hoops to jump as an investor - esp. an out of the area investor.
One is you'd have to hire a property manager if you do not live in the city of Scranton or within 20 miles of the city.
Real estate taxes are high -that plus the current interest rate and ask prices makes cash flow an issue.
You can find "deals" but please do your due diligence.
Here is an example of a potential deal I am evaluating in the hill section of the city: 20 y/o, 2000 sq ft. 3b/3bath TH - Needs paint, new carpeting, and general wear and tear repairs after a 4 year tenant. Ask price off market: $250K, No HOA, rents approx: $1900-2100/month, RE taxes approx : 7400/year, Property insurance : $1200/year, Misc fees trash,rent registration etc : $400 / year
Evaluate this and let me know your thoughts.
I mean based on what I've seen it still seems a lot better than what I've been seeing in New jersey. I wouldn't be able to get something like that for anything less than 500k here.
#3 Starting Out Contributor
- Lender
- Austin, TX
I've done quite a few deals in Pennsylvania. Many of them have worked pretty well as rural STRs, I have also seen a few LTRs, but honestly not a lot of flips. The BRRRR strategy works pretty well in some PA submarkets.
Quote from @Tanner Lewis:Since that part of PA is over an hour from me I was thinking more Long Term Rentals for my strategy. but at this point whatever works best and I can find a good deal.
I've done quite a few deals in Pennsylvania. Many of them have worked pretty well as rural STRs, I have also seen a few LTRs, but honestly not a lot of flips. The BRRRR strategy works pretty well in some PA submarkets.
#3 Starting Out Contributor
- Lender
- Austin, TX
Quote from @Brandon Morgan:
Quote from @Tanner Lewis:Since that part of PA is over an hour from me I was thinking more Long Term Rentals for my strategy. but at this point whatever works best and I can find a good deal.
I've done quite a few deals in Pennsylvania. Many of them have worked pretty well as rural STRs, I have also seen a few LTRs, but honestly not a lot of flips. The BRRRR strategy works pretty well in some PA submarkets.
That makes sense. I suggest looking for more turnkey properties if that is your priority
We were a cash flow market NOT an appreciation market. I don't believe we will see the price jumps going further. Probably a more normalized market gain of a few percent per year.
I think you should find a turnkey property as mentioned and hold it.
I'm happy to help if you have any questions or if you want to run some numbers.
Hello Brandon, hope you’re doing well. I do have some off-market properties within the Scranton area. Looking forwards to connect with you and to collaborate.