All Forum Posts by: Adam Guiffrida

@Jon Graboyes , If you have had two electric meters and possibly two water meters you should be able to show that this building is "grand-fathered in." Here is Scranton, the City cannot take the use away if it has already been converted into a multi-family unless it has been condemned.

But even if you go in front of the zoning board, if duplexes are common in the neighborhood, than you should have no issue getting it legitimately. They have no grounds to deny the application if it is consistent with the neighborhood.

Good luck with everything

@Lloyd Spencer, we own and run Synergy Property Management Group. All though we only self manage our properties, we have one hell of a team. I’ve been doing BRRRs since 2002. Our grip in South and East SCRANTON is pretty strong. Almost everything on the market we have pre-viewed. At the moment we are working on 5 property projects. If we can help with anything please let me know. My main advice is to be careful with zoning, permits, and licensing..

@Kyle Poslosky, welcome to BP. I was 22 when I started out so it’s a great time in life to start building your real estate investments.

Interested in seeing if you have a Scranton electrical license? I am rehabbing a bunch of properties and am in need of someone with good Electrician skills. If you have interest let me know. You can learn the entire real estate business working with our team. BRRR is our primary strategy.

Good luck buddy.

Amy,

Congrats on your new purchase. Not as familiar with Clarks Summit as Scranton. But hopefully I can help:

1. By law you will need to honor the current lease in place unless they are willing to sign a new one. If it were me, I would raise rent $25-50 to get you closer to market rent without losing them. The winter and holidays are the worst time to lose tenants. At least they will feel like they are getting a deal if you do not raise the full $100. Transitioning tenants are more expensive than most people think.
2. If the building has more than one thermostat than you can most likely split the heat which should not be anything major. My advice for thermostats is Landlord Thermostat. These are simple, reasonable, and work great. There are several types. If you want to use an App controlled thermostat you will need to have your own Wi-Fi which could get expensive.
3. As for bills, call UGI Penn Natural gas and tell them that you are a new tenant moving in and want an estimated budget amount. This will account for any recent gas price increases and decreases. I always recommend everyone put their gas bills on budget plans. 
4. Garbage bills and water bills I am not sure how Clarks Sumit works so I could not comment.
5. Snow removal is tough. I always recommend a service to ensure that the snow is taken care of. Even if snow removal is deemed a tenant responsibility in the lease, it still leaves you open to liability.

Hope this helps,

Adam

Scranton is the poster child for investment property. It is the text book desirable market. Two major hospitals, over seven colleges and a 2 hour radius from Philadelphia and New York. As it was once the richest cities in America during the coal boom, the infrastructure and housing stock is incredible. The city offers a great environment for pulling tenants.

The issue with Scranton at the moment is its politics and poor leadership. Currently the pension system and debts have plagued the city with high real estate taxes, high realty transfer taxes, high wage/income tages, and substantial fees for services. I am at the moment on the verge of drastically reducing the city's rental registration fees and garbage fees through class action lawsuits.

If you can fit these high real estate taxes into your budgets than the cheap prices of properties should off-set this burden.

Overall I feel Scranton is a great long term play with a minimum of 3 years investment.

Scranton is the poster child for investment property. It is the text book desirable market. Two major hospitals, over seven colleges and a 2 hour radius from Philadelphia and New York. As it was once one of the richest cities in America during the coal boom, the infrastructure and housing stock is incredible. The city offers a great environment for pulling tenants.

The issue with Scranton at the moment is its politics and poor leadership. Currently the pension system and debts have plagued the city with high real estate taxes, high realty transfer taxes, high wage/income tages, and substantial fees for services. I am at the moment on the verge of drastically reducing the city's rental registration fees and garbage fees through class action lawsuits.

If you can fit these high real estate taxes into your budgets than the cheap prices of properties should off-set this burden.

Overall I feel Scranton is a great long term play with a minimum of 3 years investment.

Amy, I couldn't agree with @Kevin D. more. That is a high number. I usually buy 4 units and do full gut renovations. The appraisals usually come in around $260-280k, but I always felt that was high. And these renovations include some state of the art equipment usually sprinklers. We recommend high efficiency gas heating systems along with spray foam insulation to keep your utility bills down. If the property was renovated properly, all the plumbing, mechanical and electric should have been updated. Check with the City on any permits pulled and inspected in the last several years. Also always confirm zoning, Scranton is filled with illegal conversions. 

Guys, Scranton is an incredible investment spot. Several major hospitals and 7 colleges. Rental market is substantial and house prices are cheap. I’m selling investment properties between 11-14% cap rates fully stabilized.

Been doing investment properties for almost 16 years. 

It’s a few year play but buy low and sell high 

Mike, that is pretty simple. Stay in areas that have Universities and hospitals. They create a substantial demand for rentals. If you see any commercial chain stores and restaurants popping up then you know they have been doing major demographic studies which show population is on the rise. They do the work for you. I’m in Scranton and it’s a great market. Major hospitals and 7 universities. Low prices and good rents. As the political environment is about to change, so will the progression of the city’s financial distress. Good luck with everything

With over 15 years of experience in real estate investing my portfolio has 139 rental units and growing. Focused in Scranton, PA, we are taking advantage of the distressed property sales. With low prices and high rents, our investment environment is incredible. Right now I own several properties in cash with no liens. Our long term strategy is buy, rent, rehab, repeat. Looking to take on some private money ($50k). We could offer first lien position on fully rented and stabilized collateral properties. Our term is 6 months and the payout is 7% return which is 14% annually. We can offer a promissory note against one of our properties and will record it on public records. Our track record speaks for itself. Please contact me at: Synergy Property Management Group.