Pottstown, PA Feedback

[Jordan M.]

I submitted this yesterday but I think I may have posted in the wrong forum so here is my second attempt....

After a long hiatus I am finally back in the market for my first investment property. I have been pre-approved for a loan and begun my search. While doing so, I came across a property located in Pottstown that almost seems to good to be true so I was hoping to get some feedback on the Pottstown rental market. I recall reading that this area could be tricky while conducting research last year but now I am looking to validate my thoughts.

I tried to search but nothing turned up. Does anyone have any insights, experiences or just general comments they want to share? Thanks in advance

[Heidi Kloeer]

There are a few things you need to know for those investors who  just starting out in Pottstown or are thinking about owning in Pottstown.  About 50% of rental properties are rentals.  Most landlords do not run the proper credit checks so there are tenants that get evicted and jump from 1 landlord to the next. This is simple for the tenants and they share the names of the easy landlords throughout the town.  There is over a 10% eviction rate per year.  Almost a 20% landlord-tenant complaint rate per year. Most landlords only make a little money per month unless they bought dirt cheap or don't have a mortgage.  Most landlords really do not know what they are doing.  To be fair they can fix up the property, find an  average renter but that is where it stops.  If the court needs to be involved most never learned the basics.  If collections need to be involved they consider it bad debt and don't pursue collections.  The codes department in Pottstown is all over landlords but let owner occupied homes alone.  The Borough is not a friend to investors. The taxes are too high and just getting higher. Appreciation is low even in a good housing market

So that is the bad.  If you buy low, fix up at minimum cost, buy in right area,manage the property yourself, and do the property credit checks you can make a nice monthly income.

We have been buying multiunits in Pottstown for years and have met many of the landlords. I can honestly say there are less than 10 landlords in Pottstown that actually understand how to rent in an area like Pottstown and understand all aspects of being a landlord. Many think they understand but do not know the skills they are missing.

So ask other landlords and boro employees who are the landlords that know the entire process. My husband and I can give you suggestions by email if you already own properties.