Markets for House Hacking in South East Pennsylvania

[Joseph Gringeri]

Hi Everyone,

I am looking to purchase my first property as a long term rental, and I am planning on house hacking it as well. I was initially planning on purchasing a property in Philadelphia, outside of center city, however home prices are extremely high and interest rates right now do not help when it comes to cash flow.

I broadened my research to other counties, such as Montgomery County, Delaware County, Lehigh County, Chester County, and Lancaster County. I am zoning in on a few specific towns/cities, but I wanted to see if anyone here would like to share their opinions on any markets around these areas that have good potential for cash flow and potential appreciation.

For my criteria, I do not need a high class neighborhood, but rather one where there is potential for growth and where crime is not extremely high. I am also prepared to do a co-living situation, as multi-unit properties are hard to come by, so the market should be a majority of renters and be pretty densely populated. 

A few areas I have in mind are:

Coatesville (Chester County)

Allentown (Lehigh County)

Lancaster City (Lancaster County)

I know this is a pretty general post, but any advice/thoughts would be greatly appreciated.

Best of luck to you all on your investment journeys!

[Ryan Legat]

Hello Joeseph, 

I have house hacked myself and work as a realtor in the Allentown/Lehigh Valley area so I can offer my thoughts on the current market for investment properties. 

The Lehigh Valley and Allentown in particular have experienced a ton of growth in recent years with an average population increase of 1 percent a year. Job growth in Healthcare, Warehousing, Manufacturing, and Service Sector have fueled this change. This in turn has created a demand for real estate keeping rent prices high and new construction happening almost constantly. I expect this trend to continue for coming years as new business open up shop and warehouses are being built constantly. 

The downtown area of Allentown was at one time filled with old, dilapidated, abandoned buildings that have been torn down and replaced with new apartments, offices, and event centers. Some areas of the city are deemed "Neighborhood Improvement Zones" which offer tax incentives to individuals who own property there. 

 Due to these factors I feel there will be a lot of opportunities for decent returns in the investment property market. Especially if you are house hacking. Of course I encourage you to always do your own research and due diligence.  

Good luck with your investment goals.