Considering PA to invest in realestate

[Account Closed]

I'm new to investing and researching the best markets to look for my first deal. Someone suggested the Pennsylvania area, specifically Harrisburg. Wanted to get some feedback from the community. Thanks.

[Kyle McCorkel]

@Steven Jefferson

The other responses did a great job. I’ll add/reiterate the following:

We’ve got great population and job growth, and it’s STABLE. The jobs come from a diverse spectrum of industries. That equates to less risk, the job market is strong therefore your tenants will (should) be able to find employment and keep paying you rent.

Low cost of living and that includes housing. It’s a double edged sword because that means most people with a decent credit score can afford to buy a place. Then (most of) the only people left renting are very financially unstable. You gotta be strict when screening tenants and wait for the good ones.

I live on the East Shore (Dauphin County) but I’m in love with the West Shore (Cumberland County) for investing. Lower taxes, better schools, better tenants, and better employment opportunities and even better/more shopping/restaurants.

You will notice that us locals have a weird tendency to speak in terms of East Shore vs. West Shore. We are referring to which side of the Susquehanna River. Most of us will admit that it’s weird, but there is a difference between the two, partially real and partially perceived. Either way you’ll want to learn about those differences.

We have a lot of really old houses. 100+ years old. If you buy one you’re signing up for all kinda of extra funky issues. I buy them all the time, but I’ve gotten used to it. The rehab can really bite you in the butt if you aren’t really conservative in estimating. Expect to replace everything, unless you’re buying it turnkey. If it’s “turnkey” you should expect it to have all new electrical, plumbing, roof, windows, and HVAC.

Our appreciation is very slow moving. If anyone tells you “this area is up and coming” in Central PA that doesn’t mean it will be gentrified and worth 100% more in 1-2 years. That means 5-10 years here.

Overall, we generally keep pace with inflation, possibly a little less. Our home prices stay low, which plays into the affordability that I mentioned above.