Hot Markets in North east PA for SFHs?

Question

What are some hot markets in northeast PA? i was thinking of clarks summit, dunmore, and scranton, possibly stroudsburg. I have property in Sugar Run, PA but that is the extent of my knowledge about the state of Pennsylvania.

Raymond Reyes · Answer

It's always smart to stay in your own backyard. Unfortunately for me my backyard is in Manhattan so that's not happening. I've been looking in Ulster county but inventory is low and going fast. Which is why I'm trying to extend my search a little. How's Rochester working out for you any good neighborhoods up there for buy and holds or flips? How are the numbers?

Basit Siddiqi · Answer

Hi @Patrick MartoneI feel like a lot of PA(northeast included) are great for cash-flow plays.I haven't heard of many of the areas that you mentioned but they appear to be a good cash-flow play just by looking at the medium home sales price of $85,000 - $150,000. The areas also appeared to be low on crime risk. However, a downside that I did see was that population was low, below 100,000, and has flat increases year over year.I hope others with actual experience in those areas can chime in.

I personally invest in Allentown, PA and I find it to be great for cash-flow purposes.

Basit

Chris K. · Answer

Hi @Patrick Martone:

What do you mean by "hot" market? Markets where the market cap rate is lowering? Markets where SFR values are appreciating faster than average? Or something else?

With the risk of generalizing, any market that's not Philadelphia, Pittsburgh, or Allentown is a tertiary market in Pennsylvania. The market fluctuates but fundamental changes are fairly rare when you look at the big picture.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.

Tim Hunte · Answer

Great reading this thread.  Considering I'm originally from Brooklyn and now live in PA.  I'm in the Lehigh Valley area and looking to build a portfolio of a mix of Flips, Holds, BRRR ( Love That)  I'm in need of someone who can give insight on how to properly price out material and understand cost with these new contractors.  I know its about buying the property right and knowing your exit before hand but I need to build up my pricing awareness!  Any ideas... I used the calculator as best I could but the material and cost is the blind spot of me...  Thanks

Aqil Dharamsey · Answer

I actually further invested in my own back yard Rochester NY

Raymond Reyes · Answer

Hey @Basit Siddiqi how's it going with your rental in Allentown and issues with crime or tenants? Any new updates or purchases? @Aqil Dharamsey did you ever make a purchase up there? Picking up this forum as I'm currently looking in the area. Any information is appreciated, thanks.

Basit Siddiqi · Answer

Hi @Aqil Dharamsey - I just recently started investing in PA(June 2017) and as a result I would take any information I say with some sort of skepticism.

I self-manage the property and as a result I really only have a team of 1 in PA(my real estate agent.) However, I compensated by taking the time to research a list of contractors to help me when the time comes(roof repairers, plumbers, contractors etc).

I financed a $52,000 home that rents for $950 a month. I calculate a 20+ cash on cash return with property management expense built into the calculation.

Let me know if you have any other questions.

Basit Siddiqi · Answer

Hi @Patrick MartoneI am located in Bensonhurst Brooklyn(South Brooklyn).Yes - I live in NYC while maintaining a rental property in Allentown PA.

I would prolly suggest looking to invest in Scranton and Stroudsburg if you know those areas better.However, feel free to ask me any questions you have on Allentown. Allentown prolly has a higher rate of crime occurrence than the areas you posted(as a headsup)

Hot Markets in North east PA for SFHs?

Most Popular Reply