Is Beaver Falls PA a good market for long term investing?

Question

Hello everyone.

I am a newbie investor and I am looking to househack my first property (ideally multi-family but I am open to rent by the room).

I have seen some multi-family properties in Beaver County (Beaver falls( and I was wondering if anyone with experienced in investing in that market could give some pros/cons of the market?

I have done my research online and it doesn't seem like the strongest market (population is stagnant, crime rate is not the best, job industry isn't very strong) but I know personal accounts are important as well.

I appreciate any and all input, thank you so much!

Paul H. · Answer

It's tough to generalize. There's like 3 sections of Beaver Falls. Bad/Okay/Great.

Personally I wouldn't touch downtown Beaver Falls. If it's up the hill from downtown, the college hill/Geneva college area, then it's "okay". I have considered places up there. Or if it's in Chippewa/Black Hawk school district (still has Beaver Falls postal address) it's in a great school district and worth looking into.

Jeremy Taggart · Answer

@Alec Jacobs downtown Beaver Falls can be good for cash flow but I wouldn't expect much upside long term in terms of rent/value growth there. Aside from some massive development near there. I have found it takes a bit longer to find quality tenants in downtown as well, being a bit further up from the city/jobs. College Hill by Geneva has a bit more upside, but still limited by proximity to things/school district.

If you are going for a house hack I would probably try to get a little closer to Allegheny County. I tend to prefer nicer areas for the house hacks because the difference in down payment between a $100k building really isn't that much from a $400k building when you are only putting 3-5% down. But the potential upside of the more expensive building is massive, plus you get a higher overall ROI when you factor in all 4 wealth generators (cash flow, loan paydown, appreciation, depreciation).

Elise Bickel Tauber · Answer

@Alec Jacobs I agree with a lot of the things Kevin and Jeremy said. I know Jeremy has personally house hacked before and I do think that is a great strategy. Whether you are house hacking, flipping, or just buying buy and hold properties, I think Beaver is a great market. Good cash flow, slow and steady appreciation over all and, in my almost 15 years of managing in Beaver, it seems like you get more longer term tenants (3-5 years and longer) but, as Jeremy said, you sometimes have to weed through a few more applications to find good ones.

I'll send you a dm of a few good contacts in Beaver county including a great investment agent, lender, and pm company.

Hope this helps!

Alec Jacobs · Answer

@Kevin Walton

Thank you so much for your insight! It does seem that it has potential, but that would depend on more specific spots within Beaver Falls.

Alec Jacobs · Answer

Thank you @Elise Bickel!

Chris Seveney · Answer

@Alec Jacobs

I invested in the area and will not be going back.

Poor tenant quality and difficult to find a good PM

I am sure there are good tenants and PM’s but it was not worth the time or effort for me

Cory St. Esprit · Answer

I own a small apartment building in Beaver Falls (4 unit). We are down the hill from downtown, towards New Brighton. Rents are fairly good, tenants not bad. No major issues. We're actively looking for more multi-family and commercial spaces in Beaver County especially on the main streets (excluding Aliquippa and Rochester for main street commercial because I just don't see those coming back around). We live in New Brighton and LOVE it, so actively looking to invest in this area.

We are considering a neighborhood hack - buying properties in/among our area to work on raising the comp, etc.

Alec Jacobs · Answer

Thanks @Paul H.!

The data can be overgeneralizing so your experience is really helpful.

Thanks again!

Kevin Walton · Answer

The Beaver Falls market is honestly hit or miss. Compared to the Pittsburgh and other surrounding areas, Beaver generally has a lower sale price compared to the potential rent values. Plus many investors and renters from the city and suburbs are moving towards the Beaver area. Rochester, Freedom, Independence, Ambridge, Leetsdale, Monaca, all in the same or close area, but the rent in Beaver Falls compared to relatively competitive markets like Chippewa, Rochester, Freedom, Hopewell, etc., is also a plus for potential renters as there is a demand for more affordable options compared to the surrounding areas. Additionally, Beaver Falls is relatively convenient to navigate to the city and other areas, a 15-20 minute drive to the airport, and easy access to 376.

Biggest suggestion would be to make sure you are flexible, willing to work with multiple housing programs, and hire a good manager if you are not going to self manage the units. There are a couple management agents in the area that mainly focus in Beaver County, that would be happy to assist you with evaluating if Beaver Falls would be where you would like to start out, and other real estate agents that would be more than happy to assist you with finding a deal that would work for you.

Feel free to connect if there is anything I can do to assist.

Is Beaver Falls PA a good market for long term investing?

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