Buying Rental Properties in Reading, PA

[Hector Castillo]

Wassup BP ! I been looking to buy my first rental property I already got Pre-approval loan, down payment and criteria for the house. I started looking at properties in the Lehigh Valley, PA but most of the house my REA showed me where over my budget so he reccomended me to another Agent from Reading, PA. Does anyone have any insight on Reading, there isn't many forms talking about that area? 

And one more question I've worked with 3 REA thus far but so far none of them communicate timely (it usually take 2-3 days to get a response even when I'm letting them know I want to offer on a property) is this common? or do i need a new one ? THANKS GUYS !

[Cesar Sabio]

Hector, first of all congrats on the big step. I currently am an active investor in the Reading area and I can tell you it’s definitely a good area to start off with. The city is still economically not showing the types of growth that you’ll find in areas like the Lehigh valley which in my book are a huge pro.

Rental market is amazing and you will not have any issues finding tenants for your properties and the price points to purchase are definitely enticing. The con though is the type of tenant that will be looking to rent from you. That’s the challenge. Price points are low when acquiring real estate but that also comes with lower rental market values for your units so it pretty much evens itself out.

With that, if you are going to buy in Reading I advise you strongly consider managing your own properties. At the acquisition price points, and the market value of the units if you do decide to go wit a pm you’ll find yourself not being very profitable as most pm’s will charge $75 per unit min or 8-10% of gross rental income. When calculating that into your analysis you’ll see that can eat up your profit real quick.

Regarding your agent, definitely look for someone else. You are the customer and if they can’t provide the type of time needed to get you set up then you don’t need that agent. Most agents, I can tell you from experience, will not spend too much time on you since your so fairly new and at your purchase price your not a big fish so they will tend to put you on the back burner since heir return is not going to be a game changer. My suggestion is that if you are going to make this a long term endeavor you definitely mention that. From experience that helped me since the agents that I’ve worked with knew I was serious and I wanted to buy as much as I could.

I hope this helped out

Cesar