What is your opinion of our current market here in NEPA

Question

Hey everyone !

Figured id reach out here to all my fellow Wilkes Barre/Scranton investors to see how everyone is doing now that covid restrictions have died down. What is your take on the market? For us we are seeing that the rents have stabilized and seem to be holding, which is great news! Rents have finally caught up with the times now. We even got some great appreciation as did most other markets. As for future values I think we have room to continue growing

I think everyones next question is/was...will it last? is it a bubble?

I truly feel that NEPA, specifically Luzerne and Lackawanna counties were lagging behind for years in terms of pricing and rents, and honestly even wages. Wages have increased significantly.

NEPA has always weathered the storms well and been shielded from bubbles. So much new investment and jobs have been coming to the county. I feel that the outlook for the next 5 years is great!

Ive always pointed out the fact that hazleton, and the Poconos have prices and rental rates considerably higher and are close enough that we should benefit from it.

Last month I had the pleasure of getting together with a group of guys from Jesery, New York and PA for a networking meeting in scranton. Would love to hold another one in the near future.

Matt M. · Answer

@Nicholas Weckstein

I am in Northampton Cty., not far from you guys. Rentals are booming here. Rent prices are thru the roof and there’s very limited availability.

I just rented a property of mine for Sept 1st, getting $225 more per month than I was when my previous tenant moved in in Oct 2019

Ryan Potuck · Answer

Hey Nicholas!

I bought my first duplex in July of this year, south of downtown Wilkes Barre. I agree with your analysis. From what my market research has shown, Wilkes Barre has more businesses coming into the area than Scranton (I could be wrong so please tell me otherwise). Due to this I feel like the long term view of Wilkes Barre will gain traction and houses will appreciate, similar to how Scranton houses are priced. Do you or anyone else agree with this statement? I've met a lot of investors who are investing in Scranton but not Wilkes Barre. I think Wilkes Barre is that hidden gem, lagging behind but going to pop up one of these years. Being new to investing I could be overseeing a crucial fact, so please correct me if I'm missing something.

Overall I see the main cities, Wilkes Barre and Scranton, being the hot spots for new business and ultimately appreciation on investments for the NEPA area. I'm looking for feedback on my views as well.

Nicholas Weckstein · Answer

Hi @Ryan Chatman ! While I might be slightly biased because it is my market of choice. We enjoy some of the highest cap rates in most markets. The price point is a strong driving factor as well. We have gotten loads of investment in jobs for our county. (Luzerne). I actually published a report all about Luzerne county you can see it here  -Free Report on the multifamily market in Luzerne county PA.

There is a growing wage base, a lot of people from the tri state area have migrated and bought up and fixed up quite a lot of properties. With a casino, hotels, shopping, dinning, amusement, etc...I think it is a great long term play. In the mean time enjoy that cash flow. We can regularly exceed the "1% rule".

Ive long considered getting into the Pocono real estate market, but hard for me to justify when I can buy a property for under 160k that makes a net profit of $1,000.00 per month. the cash on cash is amazing. to make that return in Monroe county you are spending more than that!

Ryan Chatman · Answer

@Nicholas Weckstein @Ryan Potuck thanks for the info guys! Definitely going to keep my eyes open in Luzerne county on upcoming investments

Nicholas Weckstein · Answer

I am so glad you said that! @Ryan Potuck because I feel the same way about Luzerne County. It is A gem, and with a considerably larger population than Lackawanna county. We have a lot going for us, the industrial estate jobs just keep growing and hospital and hospitality is booming.

personally for me as an investor I dont much like investing in the city of Wilkes Barre itself. Not that there isn't great return, however I feel that a lot of locals prefer to live in the towns outside of Wilkes Barre. but overall the immediate area has loads of potential. I like Hanover Township, Kingston, back mountain or mountain top areas. a few others too.

The potential is just waiting to pop, there's also plenty of amusement and lots of big investments coming into the county. in my years studying the area I can tell we we have seen growth in the past 3 years that hasn't been seen in the past 20!

lets connect! Trying to get another meet up put together maybe for late September with a few guys who invest in the county.

Nicholas Weckstein · Answer

We currently see rents as follows depending on amenities and location

1 bed - 650-800

2 bed - 750-900

3 bed 875-1100

The big spread is obviously based on location and what the unit offers. So it does vary greatly. I hardly see any 3 bedroom units going for less than 950 now days.

Ryan Chatman · Answer

@Nicholas Weckstein I've been interested in hearing what wb/Scranton has to offer.  I have a SFR in the Poconos about 30 min from Scranton off 380

Ryan Potuck · Answer

@Ryan Chatman for my duplex in Wilkes Barre, 2/1 and roughly 1,350 SF for both units, I was seeing about $700-$750 per month in rents, utilities not included. My duplex now is under market value for rent but I am aiming for those figures.

Edwin Ponce · Answer

Hey all! I just ran across this forum, some awesome insight! I purchased 2 SFH this year, one in Dunmore, and another in Clarks Summit, both under renovations currently, with the one in Dunmore about to be done and listed. So I am still a rookie in the sense of real estate investing and the area, and I want my next move to be a multi family unit (2-4) perferably a 4 unit since I am going in with a partner. For those that already have some Multi's, what are some strategies/tactics you have/or consider before looking? (i.e. I once had someone say they like side by side duplex, because it avoids any potential headaches if the tenant makes noise upstairs). In terms of investing in Multi's is there an area that might be better than the other? I hear Scranton Taxes are high, so been told to stay away, and they are a headache. Also 3months since this forum was open, what are your thoughts and analysis now? Considering the costs of supplies, inflation, have the rents stabilized? Continue to go up? any feedback would be appreciated!

What is your opinion of our current market here in NEPA

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