Reading PA Multi-Family Concerns

[Matt Daley]

I am a Realtor and investor right outside of Philadelphia in Montgomery County Pennsylvania (Blue Bell/Ambler). I have been looking for a market where Multi-family properties produce good results (say maybe 1.5 %) where at least 1 unit will pay the principal/interest and tax. I have been running numbers on the Reading, PA area and they come out great. I have a few friends who have been able to direct me to the safer neighborhoods and also like that there are numerous property management companies located within walking distance. Been researching Pros/Cons of owning investment properties in Reading. I see they have an extremely high transfer tax and the actual municipality can be tough on investors. I plan on keeping my properties up to date and in good condition so that does not concern me as much.  I am definately hiring property management and already scheduled an interview. My main goal is cash flow and debt pay down. Planing on buying a $100,000 property with a 15 year mortgage. 

Does anyone have any experience in the Reading, PA market. Anything I should be looking out for? What were the worst things that you dealt with? I always like to find out the worst people have dealt with and make my decisions based on this.

Thanks so much in advance.

Matt Daley

[Joe White]

@Matt Daley When interviewing Property Managers make sure you ask about all fees. Most will charge a percentage of the monthly rents and a leasing fee to find you tenants; but many have a great many fees that often add up to 20% in hidden costs. Vacancy fees and a mark up on renovations and repairs are common and can really add up. Good luck!