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Updated almost 5 years ago, 02/22/2020
Newbie Investor from Reading, PA!
Hi all! I have been educating myself on real estate investing for over a year now - it started when I read the (cliche) Rich Dad Poor Dad book, and then a lot of finance, real estate, and business books since (and still am!). Been also listening to the Bigger Pockets podcast for almost a year and DANG, been learning a ton there too!
I'm a SAHM and am working to get some cash flowing rental properties. I'm in the stage now of trying to get my ducks all in a row with my team, contractors, and have been actively looking locally at houses with my realtor, but all have been on the MLS and I realize my investor-number offers are not popular in this sellers market. I am not having much success so far finding any local wholesalers either to buy from (I wish they would wear a name tag with "wholesaler" at the REI meets I've attended, haha).
My husband and I have savings but money is tight, so there's not much room for error. I know I can make it work and I'm good with numbers and not letting emotions get me when looking at a place (though a good historic house does tug my heartstrings), but I'd be lying if I didn't admit that I'm nervous about still making a big mistake on my first house and all the "unknowns" of real estate that are only gained with experience. I welcome any and all help, suggestions, etc. that y'all can provide. I obviously don't have much in REI I can input on yet here, but I do have some experience with home rehab projects and design as my husband and I have been fixing up our home for the past 4 years and I can give what little knowledge I have gained in that area.
Looking forward to interacting with y'all here in the future and making some lasting connections!
@Kelly Beiler, I'm also in PA but not familiar with the Reading market. I'm up in the Wilkes-Barre/Scranton area.
What kinds of houses have you been looking at? Small multi-family? Single Family?
Are you looking to buy rent ready? Functional places where you can do a light mostly cosmetic value-add? Or fixers where you will do a complete rehab?
How are you funding? Cash? Hard Money? Conventional Loan?
Also, don't be afraid of buying your 1st investment property. You aren't going to get rich on one deal and if you're being diligent you won't make yourself poor either. The experience you get from doing it will likely be worth more than the money you make on the first deal or two.
Hi, I do deals in reading often. If you ever need help feel free to reach out. :)
@Kevin Sobilo Hi! Thanks for the encouragement, especially true what you said about the experience from the first deal being worth more than the deal.
As for what I am looking for, it's single residential, tho I'm not opposed to small multis. It depends on the numbers. If I can get a rent-ready but needs just a few cosmetic updates for the right price that cash flows at the rate I want to hit with each property to reach my business goals, then I'll go for it. Same with a full rehab.
I'm mostly looking at conventional loans, tho I have two possible people in the wings I can approach about PML (still have to land a deal in the area they're looking before they'll consider it though), which is much more what I'd prefer.
Glad to meet a fellow PA-er - thanks for reaching out and getting me to specify the above things.
@Jose Vazquez Hello! Thanks for reaching out, I will follow up!
@Kelly Beiler, I just took a cursory look at Reading, PA on zillow.
My initial observations are that I don't see many cheap C/D class single family homes. Most of the cheap ones that are listed as single family look to be row homes.
When I look at rents, they look to run a little higher than my area, but I can see why you would have trouble finding a single family that cash flows well.
In the area I invest in I could buy a rentable but cosmetically dated single family home for $35-60k and rent it for $650-850. That sort of scenario doesn't jump out at me in your area at least based on my quick look through zillow. My area is an outlier when it comes to single family homes and cash flow. Even in my area not every town is conducive to single families cash flowing.
So, I would start looking at other options like multi-family or even those row homes. It took me a long time to realize what renters thought of as "normal". It is very different than what I grew up with. A row home to me might not be attractive to live in but to many people its completely normal.
I would go walk through a bunch of livable homes that would cash flow even if they don't appeal to you personally. Maybe that would give you a feel for properties that make sense as rentals in your area.
Please post more how this goes for you. My friend and I have been searching in Reading for the last month or two for our first investment property. I need to start going to the local REI meetings and line up some good contractors for the work we won't do. Very exciting price points in Reading.
The real estate sector in the United States is crowded with too many investors already, this makes it very competitive and leads to higher prices and lower ROI
Let’s connect and discuss investing in real estate in Dubai
@Paul Grech Hi Paul - there are several local REI meetups in Berks, as well as Lancaster and surrounding. Plenty of places to find like-minded investors. You can find a few listed on the Meet-Up app for starters. As far as contractors go, start looking up local ones and calling/interviewing, check out their job sites, and get an idea of their schedule for the next few months ahead. Better to have a contractor before you start if you know you'll need to rehab, as time is money once you buy a property. :)
G'luck! And I will certainly update as things happen!
@Kevin Sobilo - thanks, Kevin! I have been doing exactly that with looking-out for row homes and small multis in the past several months of my searches and walk-thrus, so I'm glad that your research supports it as well. I've had a few slip thru my fingers here because it's a fast market in Reading still even this winter (perhaps due to it being a mild winter), but I know one will happen soon if I keep pursuing and making offers!