All Forum Posts by: Kate Daye Ruane

Call Alex, I use him for over 150 properties. Madison Webster LLC - 347-263-1093

Hi Gabe! I could always use help putting out and collecting our signage for the brokerage! Feel free to shoot me a text on my cell anytime. 

Hey William! Welcome to investing and to the Scranton market! I specialize in investments in Scranton, PA and am more than happy to help in any way. 

Hi! Scranton PA is a great spot to invest.

Pros:

- Low cost of buy-in / not much needed in comparison to other areas due to affordability in purchase price
- High-Cap Rates
- High Cash Flows
- Stable market / continuing to appreciate
- Beautiful revitalization of the downtown
- Influx of jobs, employment opportunities
- Plenty of renters
- New Amtrak service coming
- Surrounding neighborhoods are sought after, solid schools, "home team" mentality in most of the towns where people want to stay

For the Cons:
- I can't think of any OVERALL cons that couldn't be avoided in working with the right team. Mistakes that I have seen made generally always come from a lack of due diligence and understanding. I've too often seen an out of area investor get tied up financially with trusting a whole-salers or seller's description or promise of return / ARV. If it seems too good to be true, it probably is. Examples of pitfalls include purchasing in an undesirable area, not understanding the market values (vs. list prices), not knowing the rental values (current and market), inheriting bad tenants, buying a lemon, going rogue on renting and management with no contacts / systems / no legal understanding of PA and Municipal landlord-tenant laws, not having trusted resources and contractors in place, using out of state lenders or shaky financing, throwing lipstick on a pig when renovating a house and wondering why it's ARV isn't increasing, tenants are renting, etc. Basically, just like any market, you can fail - but it can so easily be avoided when you have the resources and expertise needed to navigate it.

For Crime Rates in the City Proper see here: https://crimegrade.org/safest-places-in-scranton-pa/ Just like any city, it varies heavily street to street, but is overall a solid place to invest. Any of the surrounding municipalities in Lackawanna County are a solid place to invest and considered low-crime. I have a few places that I personally favor and some that I don't - but it all depends on what your goal and strategy is.

I have resources, stats, contacts, and further info available on any of the above. I specialize in working with investors of all types in this market, invest myself, and 99% of my investors come from about 2-3 hours away and all do amazing and keep going. Reach out at anytime and I'll get back to you ASAP.

Jonathan, welcome to the jungle! I have used this as an entry point for a ton of investors here in the Scranton area and it's a great option to take since you have it! With using the FHA loan, your offer loses a large competitive edge in the market, but a good agent will navigate it properly for you and also weed out the unqualifying homes. It all will come down to the financials on these deals, and with a larger mortgage, expect less cash flow, so if I were your agent, I'd be focusing on making sure you have an income cushion but giving a broader focus on appreciation. You're doing the right thing by GETTING started and doing it! The cash flow will come on the next ones. Reach out directly anytime.

Brandon, you're going to get a lot of advice. In reading through these responses, some of them give great solutions and things to think about, and some of them are flabberghasting and full of false information. You are asking if YOU NEED a property manager... which only you can answer! 

Here's some food for thought:

- Many of my first time investors know from the jump that they aren't going to be driving 5 hours round trip for every little item, and also know that they arent prepared to handle things like disputes, evictions, lease violations, etc. Others come in with the expectation that this is PASSIVE income, and self-managing can quickly take you off of other projects or places where your time is better spent. 

- On the contrary, if you only have a single family home and it's in great condition, what's the harm in managing yourself? Give it a go! It's ONE tenant. I generally try to set my investors up for success with getting it leased for them (which is not part of a PM contract as some seem to be confused about above -- and tell them to let me know if they need to jump in and manage).  If it becomes too annoying or unmanagable, then give a REPUTABLE PM company a call! 

- The conotation of your  original post did make it seem like you weren't really interested in actively managing and coming to town, so I would weigh that in. Other things I would weigh in on the decision are:

1. The quality of the tenant in place 

2. The current rent vs market value

3. Repairs needed, conditon of the property, preventative maintenance needed throughout the year and who will handle

4. Lawn / Snow / Pest Control -- who's handling?

5. Do you have solid contacts for all different emergencies? No heat, Water Issue, Etc. Non emergeny issues like a pest problem, you can certainly figure out with a good google search and asking around or your agent before scheduling. 

6. Do you personally want the tenant contacting you at all hours? 

7. Do you have the knowledge and insight to handle any LT complaints and are you set up properly with your bank and security accounts and can easily collect the rent, etc?

The good news is it's not a decision that you need to make right away. Give it a test drive and you'll know what's comfortable for you. 

Hi Lloyd!

Did you end up purchasing something?

We offer exception PM services in the Scranton area -- feel free to check out our Google Reviews @Revolve Real Estate as well as our social and website revolvepa.com/management

We go above and beyond for our clients in everything from tenant placement to maintenance to renovations. Reach out if you need anything or would like to set up a consult with our director.

Jane -- I would recommend narrowing down a strategy in regards to importance. There are tons of properties here that cash flow super high on paper, but they wouldn't be my cup of tea. To each their own. Then you have one's that you can force appreciation / value-add, and also the ones in the neighborhoods that will simply continue to naturally appreciate with your regular maintenance. The "wilkes barre / scranton" market is SO big contrary to what one would think - while it's not as populated as a city like Philly or Pittsburgh, those two areas cover a vast amount of land and each neighborhood has it's perks. You're looking at a dozen neighborhoods in Scranton alone that each differ, and dozens of municipalities surrounding. 

In regards to the U, I don't think it's hurting by any means and seems the most stable out of it's local competition. Though I will say, as an owner / specialist in local student housing, student housing wouldn't be my play right now especially for a first-time investor. You can get good numbers residentially.

Feel free to let me know if you have any questions on a specific area or property. 

Hi Brandon! I'd love to work with you on investing in these markets. You aren't going to find more sounds deals than the Scranton Area IMO when looking at ROI and stability / appreciation. I Invest here and surrounding areas and also in Florida, but none of them perform as well as Lackawanna County.I'm AWFUL at checking BP regularly (hence while I'm just seeing this, I'm so sorry!) So if you want to chat call, text, or email me direct anytime.

I've closed over 500 transactions in the last few years, with 75%+ of them being with NY investors, and not a SINGLE one of them have an ill-performing property. 

@Neil Stark Glad I could make you laugh!