Investing in New Castle, PA

[Corey A.]

Hey everyone,

I'm looking to get started with my first buy and hold property, and I was wondering if anyone has any experience or knowledge of investing in New Castle, PA? I live in the city, but I'm not really sure about the statistics to analyze the deals... There are quite a few multi-family properties that are very low priced that I would like to get started with, and the numbers look good to me on the surface (other than these ridiculous property taxes)... but can anyone add insight on expected vacancy percentages, expected annual rent increases, or issues with city inspections, etc? I've heard some horror stories, but some of these deals look too good to pass up.

Thanks for any help!

[Johnathan Alesso]

I imagine New Castle is about as inexpensive a town as it gets.  The whole Detroit-Cleveland-Pittsburgh corridor (tour du rust as I call it) is about the cheapest in the country.  The benefit is that you can get inexpensive homes with moderate rents and reap positive cash flow. The downside is that you may not be able to readily sell the properties.  Also you may have trouble placing tenants in a small town like New Castle.  That being said, all areas have pros and cons.  If you buy really cheap and rent at market rates, you may do just fine.  I would caution against flips or immediate resale at the demand just isn't there.

I personally would invest in New Castle, if that helps.  The cash flow must be strong.