Investing in Easton, PA

[Emmanuel Jeanty]

Hi, I’m looking to possibly invest in either Easton or Bethlehem, PA. With positive cash flow. Would appreciate some guidance on this. Thank you in advance!

[Ronald Bowser]

Hi @Veronica Haniger, I agree with the majority of Syed's feedback.  An additional bedroom will definitely increase the rent month to month and while an additional bath or half bath helps, the bedroom count will be the most significant.  As mentioned, location, amenities, etc. all impact the price.  We manage properties throughout the Lehigh Valley and our recommendation is to always base purchases on the numbers, not necessarily location.  High crime areas are concerning for obvious reasons, but those properties can produce the best returns in many cases, having a competent PM in place should alleviate those concerns.  Heavily vetting tenants will help avoid evictions, difficulties, etc.

Utility costs will be driven by the property and how it is configured.  If the building is properly metered, whether it is gas, electric, or even water in some properties we always make it the tenant's responsibility.  If there is only one heating unit for a multi-unit property, the owner will be responsible, but that should in turn be reflected in the rent.  Typically owners do handle the cold water, sewer, and trash as some municipalities in our area have the trash costs wrapped in to the taxes, while others require a third party hauler for pickup.  Each situation is different, but we always recommend the water be kept in the owner's name.  Missed water payments are lien-able against the property, so we want to avoid that possibility and just receive the bill and then bill it back accordingly.  Electric, fuel and those types of bills will follow the tenant if they do not make the proper payments, so that we require to be in their name.

I have one property I bought at a short sale and completed rehab for just under $50,000 and am collecting $1,000 p/m in rent.  That was purchased back in 2016 and is my only property hitting the 2%.  It is a competitive market in the Lehigh Valley, but not unheard of either.

We work with out-of-state investors all the time, they actually comprise the majority of our clients.  Feel free to message me if you'd like to talk more and good luck with your investing!