Long Distance Buy and Hold | PA

[Jeff Lamothe]

Hello BP,

   Just finished reading David Greene's Long Distance Real Estate investing book, which got me motivated.  I am based out of Connecticut and looking for out of state, buy and hold properties.  I have looked into several different markets throughout the country, including the South, Mid-West, and West Coast.    Based on my preliminary analysis, the Mid-West appears to be the way to go.   

But since this will be my first out of state market, I would prefer to find something within a couple hours driving distance (2-3 hours), that has balanced landlord/tenant laws.   My search has led me to Pennsylvania, where I've read some good BP forum discussions for Allentown, Harrisburg, and Scranton.  I would've been interested in Philly, but it is my understanding that the city leans towards tenants or even hostile towards landlords.   

I would be interested in getting feedback from other investors in the Pennsylvania (non-Philly) market and let me know how they are doing with rentals.   

Below are some of my key criteria for a long distance property:

1) Total acquisition and repair cost $100K (assuming single family).   Willing to put in more for a duplex.  

2) Meets the 1% rule of rental income / purchase price.  Key target would be 1.25% to 1.5% rental income. 

3) Balanced landlord/tenant laws, but I wouldn't mind landlord friendly regions.  

4) At least 4 to 5 Property Management companies, with google ratings of 4.5 and higher.  

5) No warzones.   Will accept some moderate petty crime, but no major violent crimes.  

6) Stable job market.   (5 to 10% job growth in last 10 years).  

Thanks in advance.  

[Anthony Angotti]

Originally posted by @Jeff Lamothe:

Hello BP,

   Just finished reading David Greene's Long Distance Real Estate investing book, which got me motivated.  I am based out of Connecticut and looking for out of state, buy and hold properties.  I have looked into several different markets throughout the country, including the South, Mid-West, and West Coast.    Based on my preliminary analysis, the Mid-West appears to be the way to go.   

But since this will be my first out of state market, I would prefer to find something within a couple hours driving distance (2-3 hours), that has balanced landlord/tenant laws.   My search has led me to Pennsylvania, where I've read some good BP forum discussions for Allentown, Harrisburg, and Scranton.  I would've been interested in Philly, but it is my understanding that the city leans towards tenants or even hostile towards landlords.   

I would be interested in getting feedback from other investors in the Pennsylvania (non-Philly) market and let me know how they are doing with rentals.   

Below are some of my key criteria for a long distance property:

1) Total acquisition and repair cost $100K (assuming single family).   Willing to put in more for a duplex.  

2) Meets the 1% rule of rental income / purchase price.  Key target would be 1.25% to 1.5% rental income. 

3) Balanced landlord/tenant laws, but I wouldn't mind landlord friendly regions.  

4) At least 4 to 5 Property Management companies, with google ratings of 4.5 and higher.  

5) No warzones.   Will accept some moderate petty crime, but no major violent crimes.  

6) Stable job market.   (5 to 10% job growth in last 10 years).  

Thanks in advance.  

 I'm an investor and Realtor in Pittsburgh. 

Most of these are fine but two notes. 

4) At least 4 to 5 Property Management companies, with google ratings of 4.5 and higher.

Don't even go on google ratings. Property management companies get trashed by tenants and hardly ever get positive reviews. I would join whatever area you chooses facebook groups for investors (if they have them) and ask for recs there. Be warned, there's really no such thing as an exceptional property management company. At least not in my experience unless you find someone with a niche in a submarket in whatever larger market you invest in. I'd prioritize finding someone for a specific neighborhood vs a good city wide manager. The larger ones tend to be more quantity versus quality driven. 

5) No warzones. Will accept some moderate petty crime, but no major violent crimes.

If you're investing cities there's going to be a mix of neighborhoods . . . warzone is a harsh term and probably not fit for 95% of neighborhoods out there. Drugs are omnipresent today. Violent crime can happen anywhere. And mostly you can find good tenants anywhere. It just takes longer in lower income neighborhoods because less people meet the financial criteria. Just be wise with the streets you are on within specific neighborhoods versus the neighborhood as a whole. Just my two cents, by "warzone" is quite a rough term that I wouldn't say applies to most places. It's not like there are drive by shootings daily in even the rougher neighborhoods. . .