Buying Rental Properties in Reading, PA

Bronx, NY · Member since 2017 · 3 posts · 0 votes

Wassup BP ! I been looking to buy my first rental property I already got Pre-approval loan, down payment and criteria for the house. I started looking at properties in the Lehigh Valley, PA but most of the house my REA showed me where over my budget so he reccomended me to another Agent from Reading, PA. Does anyone have any insight on Reading, there isn't many forms talking about that area?

And one more question I've worked with 3 REA thus far but so far none of them communicate timely (it usually take 2-3 days to get a response even when I'm letting them know I want to offer on a property) is this common? or do i need a new one ? THANKS GUYS !

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Cesar Sabio

Easton, PA · Member since 2017 · 16 posts · 7 votes

Hector, first of all congrats on the big step. I currently am an active investor in the Reading area and I can tell you it’s definitely a good area to start off with. The city is still economically not showing the types of growth that you’ll find in areas like the Lehigh valley which in my book are a huge pro. Rental market is amazing and you will not have any issues finding tenants for your properties and the price points to purchase are definitely enticing. The con though is the type of tenant that will be looking to rent from you. That’s the challenge. Price points are low when acquiring real estate but that also comes with lower rental market values for your units so it pretty much evens itself out. With that, if you are going to buy in Reading I advise you strongly consider managing your own properties. At the acquisition price points, and the market value of the units if you do decide to go wit a pm you’ll find yourself not being very profitable as most pm’s will charge $75 per unit min or 8-10% of gross rental income. When calculating that into your analysis you’ll see that can eat up your profit real quick. Regarding your agent, definitely look for someone else. You are the customer and if they can’t provide the type of time needed to get you set up then you don’t need that agent. Most agents, I can tell you from experience, will not spend too much time on you since your so fairly new and at your purchase price your not a big fish so they will tend to put you on the back burner since heir return is not going to be a game changer. My suggestion is that if you are going to make this a long term endeavor you definitely mention that. From experience that helped me since the agents that I’ve worked with knew I was serious and I wanted to buy as much as I could. I hope this helped out Cesar

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Cesar Sabio
Easton, PA · Member since 2017 · 16 posts · 7 votes
8y
Hector, first of all congrats on the big step. I currently am an active investor in the Reading area and I can tell you it’s definitely a good area to start off with. The city is still economically not showing the types of growth that you’ll find in areas like the Lehigh valley which in my book are a huge pro. Rental market is amazing and you will not have any issues finding tenants for your properties and the price points to purchase are definitely enticing. The con though is the type of tenant that will be looking to rent from you. That’s the challenge. Price points are low when acquiring real estate but that also comes with lower rental market values for your units so it pretty much evens itself out. With that, if you are going to buy in Reading I advise you strongly consider managing your own properties. At the acquisition price points, and the market value of the units if you do decide to go wit a pm you’ll find yourself not being very profitable as most pm’s will charge $75 per unit min or 8-10% of gross rental income. When calculating that into your analysis you’ll see that can eat up your profit real quick. Regarding your agent, definitely look for someone else. You are the customer and if they can’t provide the type of time needed to get you set up then you don’t need that agent. Most agents, I can tell you from experience, will not spend too much time on you since your so fairly new and at your purchase price your not a big fish so they will tend to put you on the back burner since heir return is not going to be a game changer. My suggestion is that if you are going to make this a long term endeavor you definitely mention that. From experience that helped me since the agents that I’ve worked with knew I was serious and I wanted to buy as much as I could. I hope this helped out Cesar
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Hector Castillo
OP
Bronx, NY · Member since 2017 · 3 posts · 0 votes
8y
Hey @Cesar Sabio thank you for taking the time to respond, I prob learn more from your response than what I learned from my Agent so far. I will deff keep you posted as soon as I close on a property ! BDW do you have any agent you can recommend?
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Allyson Straka
Allentown, PA · Member since 2018 · 29 posts · 9 votes
8y
Hey Hector, we are also in the process of looking for our first rental property and wish you good luck. We used to live in Reading and the city itself would probably be tough to rent as it may be hard to find good tenants. The local economy is not very good at the moment. However, many of the surrounding suburbs would probably be a better place to invest. These areas have a sense of growth to them currently.
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Hector Castillo
OP
Bronx, NY · Member since 2017 · 3 posts · 0 votes
8y
@Allyson Straka Thanks for the input ! Is there any surrounding area specifically that you think could be the best option ?
And since you guys lived in the area do you know a good RE agent ? The two that i've dealt with so far take days to reply to any request or question I ask.
Thanks
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Allyson Straka
Allentown, PA · Member since 2018 · 29 posts · 9 votes
8y
We were actually not pursuing real estate when we lived in the area and therefore do not have any agents in mind unfortunately. Areas that might be worth considering are Sinking Spring, Wyomissing, and the West Reading. West Reading is on the outskirts of the city and seems to be going through a bit of a revitalization.
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Tom Lamborn
Rental Property Investor · Birdsboro, PA · Member since 2019 · 3 posts · 2 votes
6y
Hector - did you ever find a good investment realtor in the Reading area? I am looking, too. The REA I was with previously didnt seem to think I was a very important customer...slow responses, non-specific answers to my questions, etc. I am looking!
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Melissa Brown
Member since 2023 · 9 posts · 0 votes
1y
Quote from @Cesar Sabio:
Hector, first of all congrats on the big step. I currently am an active investor in the Reading area and I can tell you it’s definitely a good area to start off with. The city is still economically not showing the types of growth that you’ll find in areas like the Lehigh valley which in my book are a huge pro. Rental market is amazing and you will not have any issues finding tenants for your properties and the price points to purchase are definitely enticing. The con though is the type of tenant that will be looking to rent from you. That’s the challenge. Price points are low when acquiring real estate but that also comes with lower rental market values for your units so it pretty much evens itself out. With that, if you are going to buy in Reading I advise you strongly consider managing your own properties. At the acquisition price points, and the market value of the units if you do decide to go wit a pm you’ll find yourself not being very profitable as most pm’s will charge $75 per unit min or 8-10% of gross rental income. When calculating that into your analysis you’ll see that can eat up your profit real quick. Regarding your agent, definitely look for someone else. You are the customer and if they can’t provide the type of time needed to get you set up then you don’t need that agent. Most agents, I can tell you from experience, will not spend too much time on you since your so fairly new and at your purchase price your not a big fish so they will tend to put you on the back burner since heir return is not going to be a game changer. My suggestion is that if you are going to make this a long term endeavor you definitely mention that. From experience that helped me since the agents that I’ve worked with knew I was serious and I wanted to buy as much as I could. I hope this helped out Cesar

HI Ceasar! this is an old post but Im hoping youre still active. I am looking at buying units in the downtown area. on the 200th block of 6th street. Is this a good area and I would have to have someone manage it. Do you have a PM recommendation for the area? Also how is this area 7 years later and thoughts? How is off street parking. Thank You
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