All Forum Posts by: Justin Moser

Quote from @Sunny A.:

I don't see Poconos as a lucrative market right now.

I have operated in the market for almost 7 years now with few properties. Pre-covid time were different, there was less competition so the occupancy was high for sure. Definitely that was money making time in terms of operations and appreciation as well.

Things have changed now, there is so many STRs now that people are renting for 100-150 USD a night which is like a motel price.

Now it may make sense from the perspective of, if Poconos is where you travel a lot with family or you are buying full cash to park the money, or tax strategy or various other personal reasons could be there where it might make sense to invest there.

But coming in from the perspective of an investor who are new or have little experience and are trying to build wealth from not too heavy asset portfolio. Most probably they will be taking a mortgage out, current rate are at 7-9%, so easily on 300K average Pocono home you will have a mortgage of $2000 or may be more!

It is very very hard to make an NOI of $2000 every month or an average NOI, when your general occupancy trend is like weekends and long weekends because Poconos is not where USA travels, it is basically people from close by cities of NJ, NY, PA travel here.

I am not saying it is not the place to invest but if you are looking for cashflow with a 20% down with current mortgage rate, I would run my numbers very carefully.

I did not touch on HOA, township licensing and restrictions specially 2 people max per bedroom and Pocono Promise :P

I also have a STR lakefront in Pocono’s and am struggling due to low rates.  The region has gone through some significant saturation coming out of the pandemic where a strong boom in STR occurred.  I have invested to make the house nicer and added some amenities only to see achievable rents go down from last year.  It’s early but I’m seeing similar struggles amongst other STR owners.  

I can see the logic around the value of small or large places and perhaps that is the win right now.  However lakefront should still be a dominant amenity.  Open to ideas to differentiate with significant CAPEX and operating expense add like hot tub.  

Hi Matt

Thanks for the insight. Not familiar with that PITI term so will message you. Assuming I can know/assume from listing what expenses I can push on renter, looking for a fast rule to estimate cash flow and CoCROI. I'll IM you but thanks for the time and thoughts

justin

Hi Eric

Right now, I’m looking for sf twins, multis but residential. It’s a great point about property condition and I do try to consider that but before digging into seller disclosure, contacting realtor about roof/appliance ages, I’m looking for a fast and dirty way to do a quick calculation or 2 while looking at listing to assess whether I should acquire those details or not.  Like the 50% rule.  However as you note, I worry about accuracy of these approaches and don’t want to lose a potential deal either.  Any additional thoughts or tricks you use?  Thanks so much

Justin

BP gang

I am starting out this year looking to nab my first deal in western suburbs of Philadelphia as well as in gentrifying neighborhoods of Philly.  I have my strategy set and calculators warm but struggling to nail down a fast but reliable way to estimate expenses when assessing a lot of potential props.  Is 50% rule the best?  Is a different % better for this area?  Any assistance is much appreciated.

I should also say that I feel I have a good working hold on all the expenses to consider and how in the detailed analysis.  Just need the screening approach.  

 Thanks

cheers

Justin

All   Thank you for all these recommendations   I will certainly reach out to them and discuss their experience and approach to finding deals in the pocono region   Appreciate the help and good luck in your adventures   

@Chris Seveney and @Tim Herman. Thanks for the insights and help. I am not a legal expert nor have experienced this before. So the community has been having a war ongoing between the renting owners and full time residents for some time. Full time residents have been getting positions on HOA board and starting to drive their will in such policies. For this one, they created a permit policy for STR which does not clearly add anything of value on top of the permitting just put in place by township. Also adds a large annual fee. In addition all fees for renters went up despite significant increases in revenue over the last few years from STR. We are requesting transparency in context behind these actions but wanted to prepare with a lawyer. To me, HOA has a responsibility to serve the best interest of all the community and not a sector which is where my focus would be in any legal action. Any additional thoughts based on your experience?

Hello all

I am looking for the right legal help and any helpful experience to take action against a HOA in the Poconos overstepping their authority against STR owners. Any help is appreciated.

Hello-

I am looking to connect with an experienced real estate agent who works throughout the Poconos region in PA.  Someone strong in working with investors aiming for AirBnBs.  Thanks in advance for the connections.  

Cheers

Justin 

Hello gang

I am interested to hear thoughts on areas showing promise and movement in and around Philadelphia?  Targeting zone B and C real estate.  Thanks for any thought you have

Cheers

Justin

Hello

I am a new investor looking to purchase buy and hold rentals in up and coming areas of Philadelphia.  Would like recommendations for real estate agents experienced with investing, familiar with Philadelphia and able to spot and help me move fast on deals.  Thanks in advance for your input :-) 

Happy investing

Justin