Allentown. Looking for my first multi-family purchase.

[Leora Devitt]

I am looking to invest in Allentown Pennsylvania. There are many affordable multi family units but I am very concerned about the condition of the city. I would just like to start a conversation about investing in Allentown and if anybody has any good advice. I see that they are trying to make a lot of improvements in the town and I have read a decent amount on the city planning. Have you invested in Allentown? Do you have any sound advice for me?

[David Ribardo]

I work with plenty of investors that are getting good rates of return, and currently live in Allentown myself. Just like any major city, there are good and bad areas. The key here is avoiding alleyway properties and locations that attract low quality tenants. In Allentown, I like the West End and south side.

Investor money continues to pour into the area and drive appreciation. I use two unit properties in Allentown to evaluate this change. Two unit properties sold for an average of $87k in 2016, $95k in 2017, $124k in 2018, and $130k in 2019. That is a 50% appreciation within that market sub-class in three years!

My advice for anyone getting started - the people you work with will make or break your success, more than any numbers you analyze. Do your due diligence in screening your team as you build them. You could be in the best market, but if you have a bad agent, contractor, inspector, or lender, any of them could keep you from being successful. Flip that around - with the right people, you can make profits in even the toughest of markets. There are always deals to be had for those that work for them.