Any1 know what markets are best to buy multi family houses in PA?

12 Replies

  •  Any1 know what markets are best to buy multi-family houses in PA?  I am attempting to identify buyer's market area... in PA specifically... 
  • I am seeking B- and C+ area type of markets for 50 to 100  multi-family units
  • Range 1.5 mils to 2.5 mil
  • Seeking area specifically where there is job growth and appreciation and value-add opportunity
  • Cap rate must be within 10 percent minimum
  • Deals that exist must follow on av Rule of thumb 50% or less expense ratio and not overinflated.
  • Does any1 know specifically which cities... meet such criteria... i am not asking specifically for a building... that meets that criteria... i am simply trying to identify where it's best to invest into. 
  •  I am doing research in multi-family real estate.. and simply trying to find great areas... to invest in... I am not saying I am ready to invest in anything now... but rather doing a bit of homework ahead of time just to see what my options are.

Any advice would be greatly appreciated.  

I hear Pittsburgh and Philly are good markets to purchase multifamily, but not sure if deals in those markets hit your punch list.  You may also want to research Allentown and Scranton.  However, the best multifamily deals in the nation are down south.  All the best to you!

I'm here in Lancaster, we typically have nice Conservative growth. We were voted top ten markets to be in during our last recession in 2008. Lately things seem to be growing even faster then I Prefer. Lots of good jobs, small businesses, family value oriented communities. Pittsburgh is growing quite rapidly. Philly is tricky, lots of taxes, really have to know your neighborhoods.

@Rome Wells there are so many small neighborhoods within neighborhoods here in Pittsburgh that your question is impossible to answer. If you are looking for A and B areas then a 10% TRUE ROI is not going to be easy especially if you are not here in the trenches. If you are ok with c and d areas there is potential of double digit returns. You need to visit Pittsburgh and get to know specific areas street by street if possible to do an adequate job of investing your money here.

@Lisa Mangroo when you say the best multi family deals are down south, are there any specific markets you can point to? Thanks in advance!

@Stephen Kunen, the first thing that I would advise is to research cities where there is job growth and population growth.  These will be your 2 biggest indicators of an emerging market.  At this time, I'm personally looking at cities in the Carolinas, and I absolutely love Atlanta (GA), but foreign investors are driving down cap rates and its difficult to find good deals over 100 units, but they're out there.  I also hear Orlando and Jacksonville (Fl) are growth markets as well, but again, please do your research and thorough due diligence before making any purchases.  Please feel free to inbox me for more info.  Thanks!

Wilkes barre PA, all of Luzerne County. Do your due diligence. Lots of bad stuff but lots of good. The city is working hard to clean itself up

3 colleges, a casino, an airport, big medical center....crime rate is a little high but coming from New York it doesn’t feel bad. Theirs a lot of development plans in the works. Recently a 6 million dollar grant was just given to help with revitalization. Cap rates are high. Usually can exit at an 11% cap rate. Can buy even higher. It’s a stabilized area that historically haven’t seen much appreciation but has great cash flow and I believe the potential.

Other than Bureau of Labor statistics, what are other great sources for locating job growth/unemployment? Also is there a way to figure out what TYPES of jobs a specific market is creating/expected to create?

Thank you in advance for any guidance you may provide!

@Lisa Mangroo thank you very much. I lived in Atlanta for a few years and currently have one property in Stone Mountain. Would love to go back and invest in larger deals. Right now my goal is to get smaller deals like triplexes and four-plexes, but in 2 years or so will be looking at larger deals over 10 units. It seems like you invest in much bigger deals like 100+ units?

@Stephen Kunen, I actually do a mix of both big and small deals.  I syndicate deals that are 100+ units, and I acquire smaller deals 4 units or less on my own.  And most recently, I've been partnering with a handful of groups to do fix and flips to funnel capital into the syndicated deals.  I also wholesale occasionally, which is how I got started in this business.  Its a lot of fun and I enjoy what I do!  What areas are you looking to purchase 3 and 4 unit properties?

@George-Hyuung W.  use google to find where the major employers are going, or to see which cities are giving tax abatements or low interest loans that will draw in business.  I also like this website:

It ranks US metro areas that are expected to undergo a lot of job growth

@Lisa Mangroo Lisa thanks for the website tip... i personally find it amazing that you happen to be inter-mix of multiple mindsets, syndicator, wholesaler, money raiser, fix and flip participant, property acquire for your own self. 

I am surprised no one responded further and at least try to strike conversation with you further.  It would be cool to hear your story, how on earth is it possible.. how can you be wearing so many hats in real estate, I find that really cool, so cool that i went ahead and came up with a nick name for you if you don't mind...

To be honest i have no idea if this nick name even exists... but here it goes..

"hybrid syndicator"  

I created cartoon out of it too... if you want to participate in my blog and tell folks your story, feel free to reach out... to me... I have unique marketing method, where I create cartoons.. and folks who i make cartoons out of come to live... directly in the blog, it may a bit corny or gimmicky, but it is what it is.. and keeps folks glued to the screen.... and occasionally thinking that i am nuts...

I always tell folks.. there is a fine line between a genius and insane... I believe i am located on the border of that line... Anyway, it would be cool to hear your story. 

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