Should I buy a 3 unit in a city building a 148 unit complex?

[Franco Urbaez]

Hello all,

Looking for some guidance.  I'm looking to invest in a 3 unit apartment building in Easton PA (and for those of you familiar, the city is redeveloping the old silk mill into a 148 unit apartment complex filled with small shops).  Would you guys buy in an area where you know there will be THAT much competition for your rentals?

Or do you see it as the demand is so great that they would have to do that?  I see pros and cons of both sides, but just wondering if someone has gone through it and what mistakes to avoid?  Thanks!

Dream BIG,

Franco :)

[Deborah Moser]

Hi @Franco Urbaez great to hear from a local investor.  I know and invest in the Easton area, it will always have it's challenges, but the fact that this "artsy" complex is going in, can only benefit the area.  The old Mill buildings are and have always been an eye-soar for this city.  If that area along the highway gets cleaned up, it will certainly help lift property values with it.  Highway perception is invaluable, so for me and my investing, I'm thrilled to have the Silk Mill going in.

Also keep in mind that chances are the rental rates will be higher due to the value add.  That is going to exclude much of the Easton clientele.  I am just speculating here, but I think the goal with the development of the Mill is to is to attract transplants.

Good luck with your investments, and remember, you can never dream big enough!!!

All the best.