All Forum Posts by: Raymond Y.

Tracey, I was in your position only a couple months ago. Like yourself, I wanted strong cash flowing properties and I ended up purchasing a duplex in Allentown, PA. The Lehigh Valley is only 2 hours away and offers strong CAP rates with low purchase prices. On top of that, property values have been increasing dramatically the past couple of years. I would recommend checking out Lehigh Valley.

@Michael Prasto It was a little tough to find a contractor over the holiday break. I literally called 30-50 contractors and only like 5 of them picked up. I ended up not buying the property so I can't really comment on much, but Paul Giacalone was really professional and very responsive when I had him come out for a bid.

@Shane Rasnak I was in your shoes a couple months ago and I decided on Allentown due to the strong cash flows. I just closed on my first property this week and it meets your cashflow criteria. Best of all it was less than six figures! Feel free to PM me if you want to discuss more.

@Justin Brown Won't be able to make it out to this one.

@Mary Bygar Congrats on taking the first step! I was in your shoes a couple months ago and after many midnight calls with my agent/investment buddy @David Ribardo, I finally closed on my first property last week. You definitely identified the most important part of the team as an agent can make or break you. A good agent can think like an investor and if he is an investor himself, he probably has an ecosystem of investor-friendly lawyers/lenders/etc. That goes a long way, especially for a newer investor.

@James Krahula 

If you are interested in going the safe route, there are some banks that give 4%+ interest on savings accounts. There are some with no early withdrawal penalties, but it takes some work. See the link below for all your options.

https://www.doctorofcredit.com/high-interest-savin...

In the BP tools, management fees are calculated as a percentage of gross rent (Gross rent x management fee %). Shouldn't it be a percentage of gross rent after accounting for vacancy ([Gross rent - expected vacancy] x management fee %)? I am still in process of closing on my first deal, but I am assuming the property manager doesn't get paid unless there is a tenant living in the unit.

It shows up for me

Originally posted by @Joe Colasuonno:

Dont bu anything on the 300 block of law, the 400-500 block of Liberty, or 900 block of Liberty. Those are pretty rough areas.

Got it. I definitely agree that crime could happen anywhere and I am open to owning something in a rougher area as long as the numbers are right. But it was good to get your take on areas that you would not buy under any circumstance. 

I've been looking in the Lehigh Valley / Allentown area recently. I just wanted to get a little more familiar with certain areas of Allentown in terms of safety. I've heard of rules like never buy anything in an alleyway, don't buy in Center City, etc. I took a screenshot of what Trulia thinks is safe/dangerous and I would love to hear the veterans on any rule of thumbs they have on Allentown.