Lehigh Vally, PA Investing

[Rachel T.]

Hi everyone! I started learning about real estate investing about a year ago and am starting to think about property in the Lehigh Valley area of Pennsylvania. My plan is to start with a buy and hold strategy focusing on multi-family properties. With that being said what areas would be best for that in regards to cashflow? I am torn between focusing on Allentown, Bethlehem, or Easton. What are some pros and cons to each of these areas? If anyone could provide any insight that would be great!

Stay Safe!

[David Ribardo]

@Rachel T. There are good areas and bad areas for investing across all three cities. Each has their own individual nuances that you need to be aware of before purchasing in them. For example, Easton is quite stringent on their Certificate of Occupancy inspections, and Bethlehem is absolutely a terrible place to buy if you want to do short-term AirBNB style rentals. The good thing is that all three cities have major economic drivers that are bringing growth to the area. By positioning yourself along the "path of progress", you can position yourself for above average appreciation and rental demand.

In general - center city Allentown has the best cash flow due to low purchase prices, low taxes, and relatively high rents. Bethlehem has some really high demand for Lehigh University student housing, and we've been having a ton of activity on the south side in that area. It's got moderate purchase prices, taxes, and rents. Easton has the highest taxes and expenses, but also has correspondingly higher rents. Overall, investors are buying at similar cap rates across all three communities. It just comes down to what is the best deal you can find, and which one is the best fit for you.