Scranton,PA rental portfolio

[Paulo Silva]

Hello All, Trying to figure out if Scranton. PA is an investment boom or bust, looking to buy properties for a long term rental portfolio saw a few interesting 6-7 unit buildings anything I should look out for???

Appreciate the help

[Chris K.]

@Paulo Silva

Scranton is a basically 10 cap market. Depending on the cycle, the cap rate may fluctuate percentage or so. 

Given that it's a 10 cap market, good properties in the area should cash flow with reasonable assumptions (10% vacancy, 10% maintenance, 10% management, and around $1,000 CapEx reserve). And like most 10 cap markets, properties don't appreciate the same way that NYC or SF does. Rentwise, you can see anything from $400 a month to $2,000 (and above a month). In other words, Scranton has both Class A rentals to Class D rentals. Also note that taxes are high and the City historically hasn't been friendly to out-of-town landlords.

If you have any other questions, ask away! 

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.