Easton Pa - Phillipsburg NJ area

[Stephen Dominick]

I am looking for my first multi unit investment property. I am focusing on 3 - 5 units. Any advice on these two areas would be great. thanks in advance for your time.

[David Thomas]

Hi Stephen,
I'm familiar with the area but no expert by any means. I lived & worked in NE PA for 5 years and NJ for the past 4 years.
My first reaction is don't get too caught up with the sticker prices there, ie-much lower list prices than many areas in NJ/PA. But since you are from the area you likely know that plus most of what I will say regarding investing in the area.

However, solid due diligence on the property and tenant histories will be critical - view the leases, cleared rent checks, utilities and maintenance, etc etc. if the current owner will provide those.

Also take a close look at the employment and income data for those areas and see if it's something that fits your risk profile. The average household income is much lower than the rest of the state. The plus side is that there is a decent employment base from the healthcare field and manufacturing services in surrounding areas such as Bethlehem/Lehigh Valley in general. The healthcare and hospital system has been growing and expanding there for the past few years.

Find an investor friendly realtor or other local investors through BP and the right property will eventually come to you. Be conservative with numbers and plan for worst case scenarios.

If you haven't already check out the rental analysis tools on BP.

Best of luck ! And keep us posted on your progress.