Northeast PA advice

[Christopher Polanco]

Anyone in the northeast PA region available to give me starting out advice? I will begin REI in the summer of 2016 and would like some advice on buying around my area. I want to start with a 4plex. Should I instead start with a duplex? You can assume I have the funds to buy either. I just want to make sure I'm not going too deep too quickly. I do have a full time job but I also have a partner so time isn't too much of a problem. Any advice as to where to begin buying around my area as well? I live in Scranton, PA thanks in advance.

[Adam Guiffrida]

Bill, I could probably type forever. Scranton is a unique market. It is loaded with inventory, but ironically enough the rents are substantial. Higher end units here are getting $800-1400 per month for two bedrooms.

The main barrier to entry is the licensing and inspections department. Scranton is notorious for condemning properties for minimal issues. Once a home is condemned it is very difficult to re-open it as a multi-family again. There are many code updates required. Oddly enough, any three unit or more that undergoes floor layout changes will require sprinklers and a full set of construction plans.

As a builder of many types of units, I have learned that residential re-development is more efficient than new construction. I use the bones of the distressed homes and bring them up to code as modern units. 

Coming from Brooklyn, you probably have many clients looking to reach out a little further into cities like Scranton to get much higher returns. If you have any clients that are looking to purchase any investment properties in Scranton, let me know. I have properties to wholesale and properties that are all up to code that have been stabilized with good rents for years.

Feel free to call me anytime

Our city needs more investors to come in and spend money. I can offer any recommendations you would need.

Thanks,