AirBNB in Harrisburg PA?

Question

Hello Everyone!I wanted to introduce myself and ask for some feedback. I'm new to BP but have been reading for quite some time now. I've lived in Central PA for over 15 years and also own an operate a successful IT business based in Harrisburg. So I am very rooted in this area. Over the last few years I have been itching to invest in AirBNB/short term rentals. I have done so much research that it's time for me actually do it and pull the trigger on my first property. Being based in Harrisburg PA I want to start local or something that is within 2 hours (Philly/Baltimore). I know there is a lot of red tape surrounding Baltimore right now so I'm OK with holding on that area until regulations are cleared up. My question is - has anyone here been successful with AirBNB in the Harrisburg/York/Lancaster/Hershey area? If so, what made your property successful? How did you choose your first property? I know there are a few listings on BNB that seem to have decent occupancy rates. My research is pointing me to the Midtown area of HBG as that appears to be growing.Any feedback is appreciated - I'm also interested in connecting with others in the area that are interested or currently doing short term rentals in Central PA. Thanks!!

Jordan Mummau · Answer

@Jason AbelYou’re best bet for two hour radius from Central Pa (I live and invest in Lebanon County and Hershey/Derry Twp) would be the Poconos, in my opinion. Derry Twp is very tight on STR and there’s quite a lot of money HERCO has spent to ensure they capture the seasonal tourists in their hotels and entertainment venues. The township just doesn’t allow it. Right outside Hershey are possibilities, both in Hummelstown and Palmyra but you’re going to have better returns, year round in the Poconos for STR. I’ve actually looked into purchasing a few boutique motels that have popped up for sale in Hershey to focus on STR by room but the hotel taxes can be a real deterrent depending on the cap x needed to renovate appropriately. Midtown has been really undervalued for a number of years and would be worth looking into for long term rentals. Central PA as a whole has been a great place to cash flow with mid to long term tenants. Target multi’s in the 3 to 8 unit range.

Theresa Mack · Answer

I know of a few and I'm sure there are more off campus and just blocks away from LVC. I have a couple right down from me. They usually charge $500 per room/ 3 bedroom home.

Theresa Mack · Answer

@Ryan Jones I have used my own home as an airbnb in Annville just 10-15 mins from Hershey park and have had success. Mainly tourists for the hershey park and concerts. I am now purchasing another home in the area because long term rentals are making quite the profit!

Colin West · Answer

Hey Jason!My father and I have a short term rental in Intercourse, PA. We have it both AirBnb and HomeAway. Location is everything when it comes to down to it. Hershey is an area I have been looking into that might be a great area for you as well. We are blessed to know many locals who help maintain our property. We actually have an Amish family that live a block away that clean the home, mow the yard and take care of snow removal. If you ever want to meet up and discuss ideas more feel free to reach out to me.

Robbie Cotterman · Answer

A friend of mine is renting a home in the historical district. She said it sat empty for a year and the rent is high for being in that part. I'm also curious because Carlisle is a college town and the area has been steadily building for about the last 20 years.

Krishna Vakk · Answer

How is Carlisle for STR? I think they also have events around the year and wondering if it is worth it to invest in STR in Historic district or around Carlisle?

Brynn R. · Answer

@Theresa Mack is there any student housing in Annville? I know LVC is there but frowns on students staying off campus

Theresa Mack · Answer

Also, I have seen a few duplexes in 17042 go for $119,000 and one in 17003. The one in the Annville 17003 I would have loved to get BUT, i was flying to vegas the very next day with all the people I would have sent to look at the duplex for me. So It slipped away in days!! Keep an eye on your alerts and make sure you have a general contractor you trust if you are going to rehab!! My boyfriend is a GC so I got super lucky!!

Theresa Mack · Answer

I have looked at multi family mainly duplexes as well as single homes. The prices are so high right now and you really got to look into all the ordinances and laws pertaining to rentals. I checked several in the Poconos Jim Thorpe area and with all the regulations I don't see how anyone has rentals because most of the areas are restricted which is a new law they passed recently. Some require you to be local and if you are not you Must have the property maintained by someone local which obviously would be a Management company (more loss of money) there. As a result I am closing on a home attached to mine that can make $1200 per month due to LVC college and limited residential homes that are vacant in the Annville area.To answer your question, the inventory is somewhat out there if you are willing to pay top dollar or are able to rehab it yourself. There have been many tenants that are not allowing their landlords to show the apartments and have not really worked with the landlord. I myself will not purchase a place that I can't see! I learned a lot from just going to check places out all over for myself. The pictures are usually not what they seem! lol

Ryan Jones · Answer

@Theresa Mack that's great to hear! As a realtor, do you look at any small multifamily for yourself or clients? Or just SFH? I'm just curious what you are seeing as far as inventory goes in the SMF space.