All Forum Posts by: Joseph Adelmann

Hi @Daniel Vandenbos,

I own a small multifamily in Pottsville and another one in St. Clair and I very much agree with what @David Krulac indicated. I think you would have to force appreciation via property improvements to see any appreciation gains. But it can a good area for cash flow because rents are high in comparison to house prices and seem to be stable. Pottsville's downtown had been in declined with empty store fronts but I really think the arrow is pointed up with a couple of new restaurants opening up in the downtown. The Wheel has generated a lot of buzz including being named the Travel and Leisure Magazine's 12th best diner and the owner, Savas Logothetides, is very involved in revitalizing the downtown. (https://wnep.com/2018/06/26/wh...) I am less familiar with Schuylkill Haven and Tamaqua but I think they are good cash flow areas as well.

I have self managed these properties and while for the first 2 years that I owned each property, I lived in Schuylkill County, the last 2 years I have lived in Philadelphia. I think it is doable to self manage from afar but you are correct that you are supposed to have a local representative. But you might be able to work out some sort of agreement with a tenant to fill that role for a slight rent reduction.

Like with any rental, tenant screening is crucial in this area because opioids and other drugs have hit the area hard. 2019 has been my first year without an eviction so it has been a learning process. Accepting Section 8 can be a great way to add stability and I have found success with this approach. All three of my tenants in the Pottsville property are enrolled in the Pottsville Housing Authority and I have had good experience working with that organization.

There is a Schuylkill County Real Estate Investors Group on Meetup.com which might be worth checking out. Feel free to message me with further questions or if you are interested in some numbers.

Joe Adelmann

Hey @Bryan Davis,

I purchased two 3-unit multifamily properties in Schuylkill County, the first in Saint Clair as a house hack and the second in Pottsville as an occupied rental property, while I was living there. Like you I noticed that the properties were cheap compared to the rents and compared to other areas of PA. But I would really stress tenant screening. I've had one unit turnover each year I've owned the Pottsville apartment building, with two of them being evictions. Also, decide if you want section 8 to be part of your strategy because that will affect who you rent to.

I agree with @Chad Jarrah that you can get good cash flow but not to count on appreciation. And I also agree to stick to towns like Pottsville and Tamaqua and I would recommend looking at Schuylkill Haven and Orwigsburg. Feel free to reach out with more questions!

Hey @Roxanna Pifer,

Slatehouse group Property Management covers a wide range of areas and might stretch up to the Lehigh Valley. When you start looking for multi families, you should look in their areas because they will be the lowest cost property management option.

Can you tell me more about your Myrtle beach property, how you found it and how your experience has been with it? After vacationing there for two summers I was interested in investing there. We checked out some higher end condos right on the beach but it never went anywhere. I'd like to learn more about it though.

Hey @Brian Klein, 

I second @Cesar Tamayo's comment about the Meetup group in Berks county. They do a great job getting real estate professionals with a varied involvement with the business to talk at the meetings. Plus it only costs 1 canned food item so I make the trip down from Pottsville to attend the meetings. All the best!

Awesome job!

@Joel Florek, this is an awesome and inspiring post! I am starting out renovating a house hacked 3 unit property and can relate to the plaster and lath. The dust is killer! But it is rewarding work. Good luck!

Welcome to the community @Dan G.! This sounds like an awesome opportunity. How in demand are these houses? Do you feel confident about your GC's quoted costs and timeline? It sounds like he has a lot of experience you can draw on through the process. Good luck!

Welcome @Greg Ortlieb! It's awesome that you have set a goal and have your sights set on growth. I realize its been while since the original post but what has been involved with the renovations you've done?

Also I like all the conversations rentals in other PA towns. There are a lot of areas in PA to learn about investment opportunities. 

Welcome to the BP community @Franco Urbaez. The Berks County REI meets the first tuesday for every month. I would recommed coming out to it. They don't try to up sell you on anything and most meetings have a couple of speakers with occupations related to real estate. They had lawyers in to explain the PA blighted property act and have had contractors in to discuss the services they offer. Here is their website, which has all the details:

http://www.reiaberks.org/

Come out to the October meeting and we can network there. Regards,

Joe

Welcome to the community @Tyler Harz is right that BiggerPockets contains a wealth of information. They also put out awesome weekly podcasts interviewing other real estate investors and ones answering frequently asked questions. And there are the webinars with Brandon covering various topics. 

I joined the Berks County REI because there isn't on in my area but I not very familiar with Reading. It is a little bit of a hike from where you live though so what may you decide to invest there? Are you managing the property yourself? Regards,

Joe